Question: A $ 2 0 , 0 0 0 bond loan was cleared in 4 years by setting up a sinking fund that was earning 6

A $20,000 bond loan was cleared in 4 years by setting up a sinking fund that was
earning 6.00% compounded semi-annually. The deposits were made to the fund at the
end of every 6 months.
a. Calculate the size of the periodic payments deposited.
Round your answer up to the next cent
b. What was the total interest earned by the fund?
A $20,000 bond loan was cleared in 4 years by setting

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

A $27,500 bond loan was cleared in 4 years by setting up a sinking fund that was earning 6.50% compounded semi-annually. The deposits were made to the fund at the end of every 6 months. a. Calculate...

Q:

1 of 9 A $25,000 bond loan was cleared in 6 years by setting up a sinking fund that was earning 6.50% compounded semi-annually. The deposits were made to the fund at th end of every 6 months. a....

Q:

1. A $25,000 bond loan was cleared in 7 years by setting up a sinking fund that was earning 6.50% compounded semi-annually. The deposits were made to the fund at the end of every 6 months. a....

Q:

A $12,500 bond loan was cleared in 7 years by setting up a sinking fund that was earning 6.00% compounded semi-annually. The deposits were made to the fund at the end of every 6 months. a. Calculate...

Q:

Question 1 of 9 A $20,000 bond loan was cleared in 8 years by setting up a sinking fund that was earning 5.50% compounded semi-annually. The deposits were made to the fund at end of every 6 months....

Q:

Question 1 of 9 A $25,000 bond loan was cleared in 6 years by setting up a sinking fund that was earning 6.50% compounded semi-annually. The deposits were made to the fund at th end of every 6...

Q:

1 of 9 A $22,500 bond loan was cleared in 3 years by setting up a sinking fund that was earning 6.50% compounded semi-annually. The deposits were made to the fund at the end of every 6 months. a....

Q:

A $27,500 bond loan was cleared in 5 years by setting up a sinking fund that was earning 5.50% compounded semi-annually. The deposits were made to the fund at the end of every 6 months. a. Calculate...

Q:

A $25,000 bond loan was cleared in 7 years by setting up a sinking fund that was earning 5.50% compounded semi-annually. The deposits were made to the fund at the end of every 6 months. a. Calculate...

Q:

A $30,000 bond loan was cleared in 6 years by setting up a sinking fund that was earning 6.00% compounded semi-annually. The deposits were made to the fund at the end of every 6 months. a. Calculate...

Q:

Circular Motion: A particle moves around the circle x2 + y2 = r2 with a constant angular velocity of (0 radians per unit time. Show that the projection of the particle on the x axis satisfies the...

Q:

A consulting group believes that 70% of the people in a certain county are satisfied with their health coverage. Assuming that this is true, find the probability that in a random sample of 15 people...

Q:

1. Does Theo really need a will? Explain why or why not. What would happen to his estate if he were to die without a will?

Q:

Most first attempts at market segmentation are based on what? Group of answer choices Behavioral variables Consumer attitudes Aspirational variables Demographics

Q:

Summarize the economic impact of safety.

Q:

Describe what is involved in reaching, ratifying, and administering the labormanagement agreement.

Q:

Summarize the prevalence of unions.