A company has a $160,000 note due in 3 years. How much should be deposited at the end of each quarterin a sinking fund to pay off the note in 3 years if the interest rate is 11% compounded quarterly?Question Help: Message instructorSubmit Question

Solution:- When an equal amount is deposited at end of each period, it is called ordinary annuity.…

Answered: A company has a $160,000 note due in 3…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.18E

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A company has a $160,000 note due in 3 years. How much should be deposited at the end of each quarter in a sinking fund to pay off the note in 3 years if the interest rate is 11% compounded quarterly?