Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly andproduces $55,000 at the end of 3.5 years. Payments are made at the end of each period.The payment size is $ . (Round to the nearest cent.)

End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…

Answered: The payment size is $. (Round to the…

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The payment size is $. (Round to the nearest cent.)

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

Section: Chapter Questions

Problem 1PS

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Question

Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly and
produces $55,000 at the end of 3.5 years. Payments are made at the end of each period.
The payment size is $ . (Round to the nearest cent.)

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