Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $29,488 to be accumulated in 5 years; quarterly payments of $1275. The interest rate needed is approximately %. (Type an integer or decimal rounded to two decimal places as needed.)

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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Find the interest rate needed for the sinking fund to reach the required amount. Assume
that the compounding period is the same as the payment period. $29,488 to be
accumulated in 5 years; quarterly payments of $1275.
%-
The interest rate needed is approximately
(Type an integer or decimal rounded to two decimal places as needed.)
Transcribed Image Text:Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $29,488 to be accumulated in 5 years; quarterly payments of $1275. %- The interest rate needed is approximately (Type an integer or decimal rounded to two decimal places as needed.)
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