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Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540 Exercise 62
Solve the application problem. Round to the nearest cent.
RARE STAMPS Jeff Reschke bought a rare stamp for his collection. He agreed to pay a lump sum of $4000 after 5 years. Until then, he pays 6% simple interest every 6 months. (a) Find the amount of each semiannual interest payment. ____________ (b) Reschke sets up a sinking fund so that money will be available to pay off the $4000. He wants to make annual payments into the fund. The account pays 8% compounded annually. Find the amount of each payment into the fund. ____________ (c) Prepare a table showing the amount in the sinking fund after each deposit.
RARE STAMPS Jeff Reschke bought a rare stamp for his collection. He agreed to pay a lump sum of $4000 after 5 years. Until then, he pays 6% simple interest every 6 months. (a) Find the amount of each semiannual interest payment. ____________ (b) Reschke sets up a sinking fund so that money will be available to pay off the $4000. He wants to make annual payments into the fund. The account pays 8% compounded annually. Find the amount of each payment into the fund. ____________ (c) Prepare a table showing the amount in the sinking fund after each deposit.
Explanation
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a)Consider the simple interest problem. ...
Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
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