**TABLE 13.3****Sinking Fund Table Based on $1**This table provides the sinking fund factors for various interest rates over different periods. Sinking funds are used to determine the future accumulation of funds with regular periodic payments, given a specific interest rate.| Period | 2% | 3% | 4% | 5% | 6% | 8% | 10% ||--------|------|------|------|------|------|------|------|| 1 | 1.0000 | 1.0000 | 1.0000 | 1.0000 | 1.0000 | 1.0000 | 1.0000 || 2 | 0.4951 | 0.4926 | 0.4902 | 0.4878 | 0.4854 | 0.4808 | 0.4762 || 3 | 0.3268 | 0.3235 | 0.3203 | 0.3172 | 0.3141 | 0.3080 | 0.3021 || 4 | 0.2426 | 0.2390 | 0.2355 | 0.2320 | 0.2286 | 0.2219 | 0.2155 || 5 | 0.1922 | 0.1884 | 0.1846 | 0.1810 | 0.1774 | 0.1705 | 0.1638 || 6 | 0.1585 | 0.1548 | 0.1510 | 0.1470 | 0.1434 | 0.1363 | 0.1296 || 7 | 0.1345 | 0.1305 | 0.1266 | 0.1228 | 0.1191 | 0.1121 | 0.1054 || 8 | 0.1165 | 0.1125 | 0.1085 | 0.1047 | 0.1010 | 0.0940 | 0.0874 || 9 | 0.1025 | 0. **Problem Statement:**A local Dunkin' Donuts franchise must buy a new piece of equipment in 6 years that will cost $79,000. The company is setting up a sinking fund to finance the purchase. What will the quarterly deposit be if the fund earns 12% interest? (Use: Table 13.3)**Note:** Do not round intermediate calculations. Round your answer to the nearest cent.**Input Field:** Quarterly deposit [ ]

Given, The cost of equipment is $79,000 Interest rate is 12% Term is 6 years

A local Dunkin' Donuts franchise must buy a new piece of equipment in 6 years that will cost $79,000. The company is setting up a sinking fund to finance the purchase. What will the quarterly deposit be if the fund earns 12% interest? (Use Table 13.3) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Quarterly deposit

A local Dunkin' Donuts franchise must buy a new piece of equipment in 6 years that will cost $79,000. The company is setting up a sinking fund to finance the purchase. What will the quarterly deposit be if the fund earns 12% interest? (Use Table 13.3) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Quarterly deposit

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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