A corporation starts making quarterly payments into a sinking fund in order to have $710,000 in 8 years, assuming an annual interest rate of 4.5% compounded quarterly. How much interest will be earned by the fund during the 3rd quarter of the 4th year?

A corporation starts making quarterly payments into a sinking fund in order to have $710,000 in 8 years, assuming an annual interest rate of 4.5% compounded quarterly. How much interest will be earned by the fund during the 3rd quarter of the 4th year?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Step 1: calculation of the quarterly payment

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Step 2: Calculation of fund balance after 2nd quarter of 4th year (after 14th quarter)

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