HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of $55,000. To pay for the replacement, a sinking fund has been established into which equal payments are made at the end of every quarter. Interest is 7.5% quarterly. (a) What is the size of the periodic payment? (b) What is the accumulated balance just after the 32th payment?
HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of $55,000. To pay for the replacement, a sinking fund has been established into which equal payments are made at the end of every quarter. Interest is 7.5% quarterly. (a) What is the size of the periodic payment? (b) What is the accumulated balance just after the 32th payment?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 16P
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HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of $55,000. To pay for the replacement, a sinking fund has been established into which equal payments are made at the end of every quarter. Interest is 7.5% quarterly.
(a) What is the size of the periodic payment?
(b) What is the accumulated balance just after the 32th payment?
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