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Problem 10

Find the periodic payments necessary to accumulate the amounts given in Exercises \(7-12\) in a sinking fund. (Assume end-of-period deposits and compounding at the same intervals as deposits.) \(\$ 100,000\) in a fund paying \(7 \%\) per year, with quarterly payments for 20 years

Expert verified

The periodic payment necessary to accumulate $100,000 in a sinking fund after 20 years, with a 7% annual interest rate and quarterly payments, is approximately $313.40 per quarter.

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Chapter 5

Find the effective annual interest rates of the given annual interest rates. Round your answers to the nearest \(0.01 \%\). \(10 \%\) compounded monthly

Chapter 5

On the same set of axes, graph the future value of a $$\$ 100$$ investment earning \(10 \%\) per year as a function of time over a 20 -year period, compounded once a year, 10 times a year, 100 times a year, 1,000 times a year, and 10,000 times a year. What do you notice?

Chapter 5

You want to buy a 10 -year zero coupon bond with a maturity value of $$\$ 5,000$$ and a yield of \(5.5 \%\) annually. How much will you pay?

Chapter 5

Calculate the present value of an investment that will be worth $$\$ 1,000$$ at the stated interest rate after the stated amount of time. 10 years, at \(5 \%\) per year, compounded annually

Chapter 5

Determine when, to the nearest year, $$\$ 3,000$$ invested at \(5 \%\) per year, compounded daily, will be worth $$\$ 10,000$$.

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