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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

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  1. 16 July, 22:00
    0
    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
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