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A corporation creates a sinking fund in order to have $560,000 to replace some machinery in 10 years. How much should be placed in this account the end of each quarter if the annual interest rate is 6% compounded quarterly? (Round your answers to the nearest cent.) S How much interest would they earn over the life of the account? $

A corporation creates a sinking fund in order to have $560,000 to replace some machinery in 10 years. How much should be placed in this account the end of each quarter if the annual interest rate is 6% compounded quarterly? (Round your answers to the nearest cent.) S How much interest would they earn over the life of the account? $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A corporation creates a sinking fund in order to have $560,000 to replace some machinery in 10 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 6% compounded quarterly? (Round your answers to the nearest cent.) $ How much interest would they earn over the life of the account? $ Determine the value of the fund after 2, 4, and 6 years. 2 years 4 years 6 years $ $ $ How much interest was earned during the third quarter of the 7th year? $
Transcribed Image Text:A corporation creates a sinking fund in order to have $560,000 to replace some machinery in 10 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 6% compounded quarterly? (Round your answers to the nearest cent.) $ How much interest would they earn over the life of the account? $ Determine the value of the fund after 2, 4, and 6 years. 2 years 4 years 6 years $ $ $ How much interest was earned during the third quarter of the 7th year? $
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