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The following is a sinking fund schedule for a loan of $3000 repaid over four years with an annual effective interest rate of 4%. 5)
The following is a sinking fund schedule for a loan of $3000 repaid over four years with an annual effective interest rate of 4%. 5) (8 pts) What is the value of A? A) $9.26 B) $14.77 C) $19.30 D) $24.18 E) $28.26 6) ( 8pts) What is the value of B ? A) $1441.20 B) $1578.66 C) $1665.82 D) $1815.21 E) $2004.38 7) (8 pts) What is the value of C? A) $1481.90 B) $1615.32 C) $1739.54 D) $1833.06 E) $1972.53 8) (8 pts) What is the value of D? A) $36.92 B) $48.43 C) $57.65 D) $70.16 E) $82.25 9) (8 pts) Find the amount of $1000 invested for 10 years if the force of interest is 5%. A) $1584.74 B) $1616.20 C) $1648.72 D) $1724.16 E) $1742.78 10) (8 pts) If a college freshman invests a $10000 gift at 8% per annum compounded quarterly, how much can be withdrawn at the end of every quarter to use up the fund exactly after four years of college. Treat this as the present value of ana annuity-immediate. A) $676.54 B) $694.88 C) $714.42 D) $736.50 E) $755.27
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