Question: A corporation set up a sinking fund to replace aging machinery. It deposits $10,000 to the fund at the end of each three months

A corporation set up a sinking fund to replace aging machinery. It deposits $10,000 to the fund at the end of each three months

A corporation set up a sinking fund to replace aging machinery. It deposits $10,000 to the fund at the end of each three months for 5 years. At the end of 5 years, they are going to purce machine that costs $300,000. Answer the following: A. After the 5 years, will there be enough money in the account to purchase the machine? Use the appropriate formula (and NOT the TVM Solver) to determine your answer. Show all the important intermula steps that clearly indicates that you used the formula and not the TVM Solver. B. If the answer to part A is yes, then how much money is left over in the account after they have purchased the machine. If the answer to part A is no, then write "See part C. If the answer to part A is no. then the company is going to take out a loan for the remaining amount of the cost of the machine that the 5-year sinking fund didn't cover. Determine the monthly payment of the loan if the loan is a 15-year loan for 4.75% interest compounded monthly. Use the appropriate formula (and NOT the TVM Solver) to determine your answer. Show all the important intermediate steps that clearly indicates that you used the formula and not the TVM Solver.

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