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Standard 11 - Future Value of an Annuity; Sinking Funds (Section D3.3) A company establishes a sinking fund of $750,000 for office renovations that
Standard 11 - Future Value of an Annuity; Sinking Funds (Section D3.3) A company establishes a sinking fund of $750,000 for office renovations that will occur in 8 years. Payments are made every 6 months. The investment pays an annual interest rate of 12% that is compounded semi-annually. A. What is the payment amount? B. How much is in the account at the end of 7 years? The two formulas are for Future Value and the Sinking Fund formula. You may need only one or both formulas. (1 + i)" 1) FV = PMT i i PMT FV = (1+i)" -1
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
