A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the perodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is S (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed.) Complete the table, rounding each entry to the nearest cent. (Do not include the S symbol in your answers.) Penodic Payment Interval Payment Interval Number Increase in Payment (Beginning) Interest Fund Balanye at End of Payment Interval 1=5 9% 0. 2. 3. 4.
A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the perodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is S (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed.) Complete the table, rounding each entry to the nearest cent. (Do not include the S symbol in your answers.) Penodic Payment Interval Payment Interval Number Increase in Payment (Beginning) Interest Fund Balanye at End of Payment Interval 1=5 9% 0. 2. 3. 4.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 23E
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![A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the penodic payment and
compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule.
The size of the payment is S.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Complete the table, rounding each entry to the nearest cent.
(Do not include the $ symbol in your answers.)
Periodic
Payment Interval
Number
Payment Interval
Interest
Increase in
Payment
(Beginning)
Balanye at End of Payment Interval
Fund
i=5.9%
1
2.
3.
4.
Enter your answer in each of the answer boxes](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34986421-d1c9-4487-910b-1d830d6df82e%2F4b736d77-da11-452b-afc6-336edb862c47%2F5vmh9vs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the penodic payment and
compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule.
The size of the payment is S.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Complete the table, rounding each entry to the nearest cent.
(Do not include the $ symbol in your answers.)
Periodic
Payment Interval
Number
Payment Interval
Interest
Increase in
Payment
(Beginning)
Balanye at End of Payment Interval
Fund
i=5.9%
1
2.
3.
4.
Enter your answer in each of the answer boxes
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