Luxury Yacht company is preparing to buy a new yacht estimated to cost $750000 by making equal

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Luxury Yacht company is preparing to buy a new yacht estimated to cost $750000 by making equal payments at the end of every three months into a sinking fund for six years. Interest earned by the fund is 7.5% compounded quarterly. (20 marks)

(a) What is the size of the quarterly payment made to the sinking fund?

(b) How much of the maturity value of the fund will be interesting?

(d) How much interest will the fund earn in the 15th payment interval? (20 marks)

Related Book For answer-question

Fundamentals Of Business Mathematics In Canada

ISBN: 9781259370151

3rd Edition

Authors: F. Ernest Jerome, Jackie Shemko

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Posted Date: Dec 11, 2022 11:28 AM

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Luxury Yacht company is preparing to buy a new yacht estimated to cost $750000 by making equal

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Fundamentals Of Business Mathematics In Canada

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