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Unformatted text preview: 00 If the fund earns 10% interest per year compounded quarterly, determine the
size of each (equal) quarterly installment the proprietor should pay into the
Solution: Given: F= 30,000, i = i/m = 0.1/4 = 0.025, and n = (2)(4) = 8.
and Using the sinking fund payment formula we find that the required size of each
quarterly payment is given by
quarterly A = $3434.02 size/ amount of each quarterly payment
size/ EXAMPLES 2.) Find the amount to be deposited at the beginning of every 6 months for 5 years
to accumulate P600,000, if money is worth 9% compounded semi-annually.
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This document was uploaded on 02/26/2014.
- Spring '14