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What is the amount of payment to be made in a sinking fund so that the indicated amount will be there when needed. Round to the nearest cent $14,000 in 5 years, money earns 8% compounded quarterly, 20 quarterly payments
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We have the formula as
FV=$14,000i=rate of interest=8/4 =2%
n=20
Substitute and solve for PMT,
Thus $576.20 must be made into the shrinking fund.Please rate my answer so that I can further help you in the future.ThanksCompletion Status:
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