A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 10 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 5.3% compounded quarterly? (Round your answers to the nearest cent.)
A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 10 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 5.3% compounded quarterly? (Round your answers to the nearest cent.)
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...
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A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 10 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 5.3% compounded quarterly? (Round your answers to the nearest cent.)
$
How much interest would they earn over the life of the account?
$
Determine the value of the fund after 2, 4, and 6 years.
2 years | $ | |
4 years | $ | |
6 years | $ |
How much interest was earned during the second quarter of the 5th year?
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