Question
Question 4: (20 points) (A) A company borrowed $ 150,000. The company plans to set up a sinking fund that will pay back the loan
Question 4: (20 points) (A) A company borrowed $ 150,000. The company plans to set up a sinking fund that will pay back the loan at the end of 10 years. Assuming a rate of 8% compounded semiannually, find the Sinking Fund of the ordinary annuity. (B) An employee decided to invest $ 2,500 quarterly for eight years in an ordinary annuity at 20%. What is the total cash value of the annuity at end of year 8? C) What must YOU invest today to receive an annuity of $ 12,600 for 12 years compounded at 8% quarterly when all withdrawals will be made at the end of each period?
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