5. The payments made in a sinking fund are $5, 000 at the end of each quarter for 3 years. Assume the interest rate is 10%compounded quarterly. Calculate the interest earned at the end of Period 2. Period Amount of Deposit Interest Earned Account Balance $5, 000 $5, 000 1 $0.00 $5,000 ?? $5, 000 $5, 000 3 4. O $12, 500 $500 $125 O $12.50
5. The payments made in a sinking fund are $5, 000 at the end of each quarter for 3 years. Assume the interest rate is 10%compounded quarterly. Calculate the interest earned at the end of Period 2. Period Amount of Deposit Interest Earned Account Balance $5, 000 $5, 000 1 $0.00 $5,000 ?? $5, 000 $5, 000 3 4. O $12, 500 $500 $125 O $12.50
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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![5. The payments made in a sinking fund are $5, 000 at the end of each quarter for 3 years. Assume the interest rate is 10%compounded quarterly.
Calculate the interest earned at the end of Period 2.
Period
Amount of Deposit
Interest Earned
Account Balance
$5, 000
$5, 000
$5, 000
$5, 000
$0.00
$5, 000
2
??
3
4
$12, 500
$500
$125
$12.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07872584-b00f-4ec0-a2d3-502379f08886%2Fc81f4d8c-f8ec-4c96-81c7-338a2a5b1fb4%2Frz0wsci_processed.png&w=3840&q=75)
Transcribed Image Text:5. The payments made in a sinking fund are $5, 000 at the end of each quarter for 3 years. Assume the interest rate is 10%compounded quarterly.
Calculate the interest earned at the end of Period 2.
Period
Amount of Deposit
Interest Earned
Account Balance
$5, 000
$5, 000
$5, 000
$5, 000
$0.00
$5, 000
2
??
3
4
$12, 500
$500
$125
$12.50
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