€20,000 Is Borrowed Over 3 Years at 9

€20,000 is borrowed over 3 years at 9.5% compounded. Calculate the annuity that must be paid into the sinking fund in order to meet this commitment, assume payments are made in arrears and can be invested at 4.5% (to the nearest €10) .

A) €8,370
B) €8,380
C) €8,390
D) €8,400

Correct Answer:

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