Need help with finite mathematics "True or False" #6

Anonymous
timer Asked: Nov 10th, 2015
account_balance_wallet $5

Question Description

True or false. A sinking fund is the accumulated amount to be realized at some future date (the end of the term) when a fixed number of periodic payments are paid into an account earning interest at the rate of i per period.

* If statement is false, make the statement true.

Tutor Answer

alancheng
School: Carnegie Mellon University

Thank you for the opportunity to help you with your question!

True.  A sinking fund is a fund formed by periodically setting aside money to repay a debt or replace a wasting asset (gradually over time).

The amount of money at the nth period equals the amount at the (n- 1) period plus the interest earned on that plus the periodic payment.  Similar to the value of an ordinary annuity.


Please let me know if you need any clarification. I'm always happy to answer your questions.

flag Report DMCA
Review

Anonymous
Top quality work from this guy! I'll be back!

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors