Find the amount of each payment to be made into a sinking fund earning 9% compounded monthly to accumulate $86,000 over 5 years. Payments are made at the end of each period. The payment size is $ (Round to the nearest cent.)

Find the amount of each payment to be made into a sinking fund earning 9% compounded monthly to accumulate $86,000 over 5 years. Payments are made at the end of each period. The payment size is $ (Round to the nearest cent.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 9RE

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

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Find the amount of each payment to be made into a sinking fund earning 9% compounded monthly to accumulate
$86,000 over 5 years. Payments are made at the end of each period.
The payment size is $.
(Round to the nearest cent.)

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