Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A small foundry agrees to pay $420,000 three years from now to a supplier for a given amount of coking coal. The foundry plans to

A small foundry agrees to pay $420,000 three years from now to a supplier for a given amount of coking coal. The foundry plans to deposit a fixed amount in a bank account every three months, starting three months from now, so that at the end of three years the account holds $420,000. If the account pays 7.5% APR compounded monthly, how much must be deposited every three months?

Group of answer choices

$17,046.00

$23,671.72

$13,319.33

$31,514.99

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For IT Decision Makers

Authors: Michael Blackstaff

1st Edition

3540762329, 978-3540762324

More Books

Students also viewed these Finance questions

Question

understand how groups are structured,

Answered: 1 week ago