Mechanic's Hardware Needs to Accumulate $41,000 in 3 Years to Purchase

question 3

Multiple Choice

Mechanic's Hardware needs to accumulate $41,000 in 3 years to purchase new equipment. What sinking fund payment would they need to make at the END of each month, at 6% interest compounded monthly? (Use Table 12-1 from your text)

• A) $2,111.35
• B) $1,885.21
• C) $1,042.30
• D) $1,399.56

---

Definitions:

Consolidated Net Income

The combined net income of a parent company and its subsidiaries, after adjusting for intercompany transactions and minority interests.