A corporation creates a sinking fund in order to have $370,000 to replace some machinery in...

60.1K

Verified Solution

Question

Finance

A corporation creates a sinking fund in order to have $370,000 toreplace some machinery in 8 years. How much should be placed inthis account at the end of each week if the annual interest rate is3.5% compounded weekly? (Round your answers to the nearestcent.)
$

How much interest would they earn over the life of theaccount?
$

Determine the value of the fund after 2, 4, and 6 years.
2 years $
4 years $
6 years $

Answer & Explanation Solved by verified expert

4.4 Ratings (923 Votes)

Since its a case of sinking fund we need to save an amount weekly Set FV 370000 NPERN 416 8 yrs x 52 RateIY 0000673077 3552 PMT 77100 Press CPT PMT in BAII to See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

A corporation creates a sinking fund in order to have $370,000 toreplace some machinery in 8 years. How much should be placed inthis account at the end of each week if the annual interest rate is3.5% compounded weekly? (Round your answers to the nearestcent.)$ How much interest would they earn over the life of theaccount?$ Determine the value of the fund after 2, 4, and 6 years.2 years$4 years$6 years$