To determine the number of periods for a sinking fund, multiply the years times

Business & Finance
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To determine the number of periods for a sinking fund, multiply the years times the number of compounding periods per year. 

A) True B) False

Apr 26th, 2015

True

Please let me know if you have any other questions and best me if you are satisfactory. 

Apr 26th, 2015

can you explain to me how you got that answer above

Apr 26th, 2015

An example of the use of a sinking fund would be to accumulate a sum of money to modernize equipment. 

A) True B) False

Apr 26th, 2015

Suppose Loan is $100 million to be repaid at the end of 4 years.
Monthly deposits are made.
Interest rate is 22% per year compounded monthly. 

So total no: of periods = 12 months * 4  (years) = 48 months

Apr 26th, 2015

oh ok i got it now

Apr 26th, 2015

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Apr 26th, 2015
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