Question
A corporation creates a sinking fund in order to have $360,000 to replace some machinery in 12 years. How much should be placed in this
A corporation creates a sinking fund in order to have $360,000 to replace some machinery in 12 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 7.8% compounded quarterly? (Round your answers to the nearest cent.) How much interest would they earn over the life of the account? Determine the value of the fund after 2, 4, and 6 years.
How much interest was earned during the fourth quarter of the 6th year?
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Financial Accounting Theory
Authors: Craig Deegan, H. Bierman
4th Edition
0071013148, 978-0071013147
