A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the perodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is S (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed.) Complete the table, rounding each entry to the nearest cent. (Do not include the S symbol in your answers.) Penodic Payment Interval Payment Interval Number Increase in Payment (Beginning) Interest Fund Balanye at End of Payment Interval 1=5 9% 0. 2. 3. 4.

A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the perodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is S (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed.) Complete the table, rounding each entry to the nearest cent. (Do not include the S symbol in your answers.) Penodic Payment Interval Payment Interval Number Increase in Payment (Beginning) Interest Fund Balanye at End of Payment Interval 1=5 9% 0. 2. 3. 4.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 34P

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