In order to fund the renovation of her condo unit, Stella estimates that Php350,000 will be needed in 4.5 years. She decides to deposit a sum every 3 months with interest earned at 8% converted quarterly. Consider the sinking fund schedule below. What is the interest earned after the first deposit? Period Amount at the beginning 1 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Php16,345.74 Php0 Php33,018.39 Php326.91 Interest Earned 0 Periodic Deposit Amount at the end
In order to fund the renovation of her condo unit, Stella estimates that Php350,000 will be needed in 4.5 years. She decides to deposit a sum every 3 months with interest earned at 8% converted quarterly. Consider the sinking fund schedule below. What is the interest earned after the first deposit? Period Amount at the beginning 1 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Php16,345.74 Php0 Php33,018.39 Php326.91 Interest Earned 0 Periodic Deposit Amount at the end
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 16
In order to fund the renovation of her condo
unit, Stella estimates that Php350,000 will be
needed in 4.5 years. She decides to deposit a sum
every 3 months with interest earned at 8%
converted quarterly. Consider the sinking fund
schedule below. What is the interest earned after
the first deposit?
Period the
4
5
6
7
8
9
10
11
Amount at
1 0
2
3
12-13
14
15
16
17
18
beginning
Php16,345.74
Php0
Php33,018.39
Php326.91
Interest Periodic
Earned
Deposit
0
Amount
at the
end
16
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