A corporation decides to deposit a fixed payment per quarter into an account earning 9% interest per year, compounded quarterly, in order to create a sinking fund so they will have $125,000 to replace some machinery in 5 years. How much interest does the account earn in the first quarter of year 3? (Enter an answer correct to the nearest cent.).
A corporation decides to deposit a fixed payment per quarter into an account earning 9% interest per year, compounded quarterly, in order to create a sinking fund so they will have $125,000 to replace some machinery in 5 years. How much interest does the account earn in the first quarter of year 3? (Enter an answer correct to the nearest cent.).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A corporation decides to deposit a fixed payment per quarter into an account earning 9% interest per year, compounded quarterly, in order to create a sinking fund so they will have $125,000 to replace some machinery in 5 years. How much interest does the account earn in the first quarter of year 3? (Enter an answer correct to the nearest cent.).
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