Company STU is starting a sinking fund for two future purchases. The risk free rate is 3.1%. They will need $600,000 in five years and another $800,000 in 12 years (from today). How much should they be saving per month if they were just saving for the first item? $ How much should they be saving per month if they were just saving for the second item? $ How much should they be saving per month if they wanted level payments for the two purchases? $ With level payments, will they have enough to buy the first item on schedule?

Company STU is starting a sinking fund for two future purchases. The risk free rate is 3.1%. They will need $600,000 in five years and another $800,000 in 12 years (from today). How much should they be saving per month if they were just saving for the first item? $ How much should they be saving per month if they were just saving for the second item? $ How much should they be saving per month if they wanted level payments for the two purchases? $ With level payments, will they have enough to buy the first item on schedule?

Intermediate Algebra

10th Edition

ISBN:9781285195728

Author:Jerome E. Kaufmann, Karen L. Schwitters

Publisher:Jerome E. Kaufmann, Karen L. Schwitters

Chapter2: Equations, Inequalities, And Problem Solving

Section2.S: Summary

Problem 8S: What interest rate would you need to get to double an investment of 200 in eight years?

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