A city has issued bonds to finance a new convention center. The bonds have a total face value of $3,000,000 and are payable in 8 years. A sinking fund has been opened to meet this obligation. If the interest rate on the fund is 6.7% compounded quarterly, what will be the quarterly payments? (Round your final answer to two decimal places.)
A city has issued bonds to finance a new convention center. The bonds have a total face value of $3,000,000 and are payable in 8 years. A sinking fund has been opened to meet this obligation. If the interest rate on the fund is 6.7% compounded quarterly, what will be the quarterly payments? (Round your final answer to two decimal places.)
Consider the following formula for sinking fund,
R = Ai/ (1+i)n-1
Here R is the amount of each periodic payment, i is the rate of interest, n is the number of payments made and A is the value of the annuity after one makes n payments.
Consider a city has issued bonds to finance a new convention center. The bonds have
a total face value of $3,000,000 are payable in 8 years. A sinking fund has been opened to meet this obligation. If the interest rate on the fund is 6.7% compounded quarterly.
The quarterly payments
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