A corporation creates a sinking fund in order to have $910,000 to replace some machinery in 9 years. How much should be placed in this account at the end of each month if the annual interest rate is 5.7% compounded monthly? (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 third month of the 4th year? $
A corporation creates a sinking fund in order to have $910,000 to replace some machinery in 9 years. How much should be placed in this account at the end of each month if the annual interest rate is 5.7% compounded monthly? (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 third month of the 4th year? $
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1P
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Step 1: Definition of Future Value
VIEWStep 2: Computation of Monthly Deposit:
VIEWStep 3: Computation of Interest earned over the life of the account:
VIEWStep 4: Computation of value of fund after 2 years, 4 years & 6 years:
VIEWStep 5: Computation of Interest earned during 3rd month of the 4th year:
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