8.

Howmet Corporation needs $200,000 in 5 years.

Find the required quarterly payment into a sinking fund if funds are invested in an account earning 10% per year compounded quarterly.

$38,050.00

$6,716.00

$32,760.00

$7,830.00

Question

Hillary Mcclure

Mathematics

16 July, 21:39

8.

Howmet Corporation needs $200,000 in 5 years.

Find the required quarterly payment into a sinking fund if funds are invested in an account earning 10% per year compounded quarterly.

$38,050.00

$6,716.00

$32,760.00

$7,830.00

+3

Answers (1)

Know the Answer?

Darion Good · Answer 1

Fv=pmt [ (1+r/k) ^ (kn) - 1) : (r/n) ]

Fv = 200,000

r = 0.1

n = 5

k = 4 (quarterly)

Pmt=200,000: (((1+0.10:4) ^ (4*5) - 1) : (0.10:4)) = 7,829.43

8.Howmet Corporation needs $200,000 in 5 years.Find the required quarterly payment into a sinking fund if funds are invested in an account earning 10% per year compounded quarterly.$38,050.00$6,716.00$32,760.00$7,830.00

8.

Howmet Corporation needs $200,000 in 5 years.

Find the required quarterly payment into a sinking fund if funds are invested in an account earning 10% per year compounded quarterly.

$38,050.00

$6,716.00

$32,760.00

$7,830.00