A corporation creates a sinking fund in order to have $950,000 to replace some machinery in 11 years. How much should be placed in this account at the end of each week if the annual interest rate is 3% compounded weekly? (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 fourth week of the 6th year?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A corporation creates a sinking fund in order to have $950,000 to replace some machinery in 11 years. How much should be placed in this account at the end of each week if the annual interest rate is 3% compounded weekly? (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 fourth week of the 6th year?

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