Question: A small foundry agrees to pay $260,000 two years from now to a supplier for a given amount of coking coal. The foundry plans to
A small foundry agrees to pay $260,000 two years from now to a supplier for a given amount of coking coal. The foundry plans to deposit a fixed amount in a bank account every three months, starting three months from now, so that at the end of two years the account holds $260,000. If the account pays 10.5% APR compounded monthly, how much must be deposited every three months? A. $38,488 B. $35,527 C. $32,566 OD. $29,606
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