A corporation creates a sinking fund in order to have $880,000 to replace some machinery in 9 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 7.9% 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?

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
icon
Related questions
Topic Video
Question

A corporation creates a sinking fund in order to have $880,000 to replace some machinery in 9 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 7.9% 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?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Optimization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,