What Sinking Fund Payment Would You Need to Make at the END

question 113

Multiple Choice

What sinking fund payment would you need to make at the END of each three months, at 12% interest compounded quarterly, to amount to $3,500 in 4 years? (Use Table 12-1 from your text)

• A) $232.93
• B) $732.32
• C) $481.05
• D) $173.64

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Definitions:

Fluid Dram

A unit of volume in the apothecaries' system, equivalent to 1/8 of a fluid ounce.

Metric Equivalent

Metric equivalent is the corresponding value of a measurement expressed within the metric system, used for converting units like inches to centimeters.

Microgram

A unit of mass equal to one millionth of a gram, commonly used in medicine and science to measure small weights and doses.

Volume

The amount of space an object, such as a drug, occupies.