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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596 Exercise 24
Amortization payment
The Shangri-La Hotel has a financial obligation of $1,000,000 due in 5 years for kitchen equipment. A sinking fund is established to meet this obligation at 7.5% interest compounded monthly.
a. What equal monthly sinking fund payments are required to accumulate the needed amount?
b. What is the total amount of interest earned in the account?
The Shangri-La Hotel has a financial obligation of $1,000,000 due in 5 years for kitchen equipment. A sinking fund is established to meet this obligation at 7.5% interest compounded monthly.
a. What equal monthly sinking fund payments are required to accumulate the needed amount?
b. What is the total amount of interest earned in the account?
Explanation
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To calculate sinking fund, use the formu...
Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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