Answered: Use the accompanying sinking fund…

Use the accompanying sinking fund formula to determine the payment needed to reach the accumulated amount. Monthly payments with 7% interest are compounded monthly for 21 years to accumulate

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 18E

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Question

Use the accompanying sinking fund formula to determine the payment needed to reach the accumulated amount.

Monthly payments with

interest are compounded monthly for

years to accumulate

$620,000

p=Arn1+rnnt−1

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