Southern Land Company plans to raise $200,000 over a 2-year period so they can purchase a parcel of land. In order to obtain this amount, the company has decided to make quarterly investments into a sinking fund that will earn 8% per year compounded quarterly for the next 2 years. Using the sinking fund table, calculate the amount of each quarterly sinking fund payment required to raise $200,000 in 2 years.

Southern Land Company plans to raise $200,000 over a 2-year period so they can purchase a parcel of land. In order to obtain this amount, the company has decided to make quarterly investments into a sinking fund that will earn 8% per year compounded quarterly for the next 2 years. Using the sinking fund table, calculate the amount of each quarterly sinking fund payment required to raise $200,000 in 2 years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 20P

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