A local Dunkin’ Donuts franchise must buy a new piece of equipment in 5 years that will cost $97,000. The company is setting up a sinking fund to finance the purchase. What will the quarterly deposit be if the fund earns 8% interest? (Use Table 13.3.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Quarterly deposit -
A local Dunkin’ Donuts franchise must buy a new piece of equipment in 5 years that will cost $97,000. The company is setting up a sinking fund to finance the purchase. What will the quarterly deposit be if the fund earns 8% interest? (Use Table 13.3.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Quarterly deposit -
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A local Dunkin’ Donuts franchise must buy a new piece of equipment in 5 years that will cost $97,000. The company is setting up a sinking fund to finance the purchase. What will the quarterly deposit be if the fund earns 8% interest? (Use Table 13.3.) (Do not round intermediate calculations. Round your answer to the nearest cent.)
Quarterly deposit -
Transcribed Image Text:Period
2%
3%
4%
5%
6%
8%
10%
1
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
2
0.4951
0.4926
0.4902
0.4878
0.4854
0.4808
0.4762
3
0.3268
0.3235
0.3203
0.3172
0.3141
0.3080
0.3021
4.
0.2426
0.2390
0.2355
0.2320
0.2286
0.2219
0.2155
0.1922
0.1884
0.1846
0.18,10
0.1774
0.1705
0.1638
6.
0.1585
0.1546
0.1508
0.1470
0.1434
0.1363
0.1296
0.1345
0.1305
0.1266
0.1228
0.1191
0.1121
0.1054
8.
0.1165
0.1125
0.1085
0.1047
0.1010
0.0940
0.0874
9.
0.1025
0.0984
0.0945
0.0907
0.0870
0.0801
0.0736
10
0.0913
0.0872
0.0833
0.0795
0.0759
0.0690
0.0627
11
0.0822
0.0781
0.0741
0.0704
0.0668
0.0601
0.0540
12
0.0746
0.0705
0.0666.. 0.0628
0.0593
0.0527
0.0468
13
0.0681
0.0640
0.0601
0.0565
0.0530
0.0465
0.0408
14
0.0626
0.0585
0.0547
0.0510
0.0476
0.0413
0.0357
15
0.0578
0.0538
0.0499
0.0463
0.0430
0.0368
0.0315
16
0.0537
0.0496
0.0458
0.0423
0.0390
0.0330
0.0278
17
0.0500
0.0460
0.0422
0.0387
0.0354
0.0296
0.0247
18
0.0467
0.0427
0.0390
0.0355
0.0324
0.0267
0.0219
19
0.0438
0.0398
0.0361
0.0327
0.0296
0.0241
0.0195
20
0.0412
0.0372
0.0336
0.0302
0.0272
0.0219
0.0175
24
0.0329
0.0290
0.0256
0.0225
0.0197
0.0150
0.0113
28
0.0270
0.0233
0.0200
0.0171
0.0146
0.0105
0.0075
32
0.0226
0.0190
0.0159
0.0133
0.0110
0.0075
0.0050
36
0.0192
0.0158
0.0129
0.0104
0.0084
0.0053
0.0033
40
0.0166
0.0133
0.0105
0.0083
0.0065
0.0039
0.0023
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