To provide for expansion, a company has established a sinking fund earning 9% semi-annually. The fund is anticipated to reach a balance of $51,000 in 13 years. Payments are made at the beginning of every 6 months. (a) What is the size of the periodic payment? (b) What is the accumulated balance at the end of payment period 13? (a) The size of the periodic payment is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
To provide for expansion, a company has established a sinking fund earning 9% semi-annually. The fund is anticipated to reach a balance of $51,000 in 13 years. Payments are made at the beginning of every 6 months. (a) What is the size of the periodic payment? (b) What is the accumulated balance at the end of payment period 13? (a) The size of the periodic payment is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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:To provide for expansion, a company has established a sinking fund earning 9% semi-annually. The fund is anticipated to reach a balance of $51,000 in 13 years. Payments are made at the
beginning of every 6 months.
(a)
What is the size of the periodic payment?
(b) What is the accumulated balance at the end of payment period 13?
(a) The size of the periodic payment is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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