Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $19,654 to be accumulated in 4 years; quarterly payments of $1075
Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $19,654 to be accumulated in 4 years; quarterly payments of $1075
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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Transcribed Image Text:Find the interest rate needed for the sinking fund to reach
the required amount. Assume that the compounding period
is the same as the payment period.
$19,654 to be accumulated in 4 years; quarterly payments
of $1075
The interest rate needed is approximately%.
(Type an integer or decimal rounded to two decimal places
as needed.)
Transcribed Image Text:Find the periodic payment
which will amount to a sum
of $12000 if an interest rate
8% is compounded annually
at the end of 9 consecutive
years.
.
The periodic
payment is $
(Round to the
nearest cent.)
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