A sinking fund is established by alliance inc at 8 interest, Ask an Expert

Economics

A sinking fund is established by Alliance, Inc., at 8% interest compounded semiannually to meet a financial obligation of $1,800,000 in 4 years.

a. What periodic sinking fund payment is required every 6-months to reach the company's goal?

b. How much greater would the payment be if the interest rate was 10% compounded semiannually rather than 8%

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91407079

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