Find the Sinking Fund Payment You Would Need to Make

question 23

Multiple Choice

Find the sinking fund payment you would need to make at the end of each year, at 5% interest compounded annually, to amount to $8,000 in 2 years. (Use the appropriate formula)

• A) $2,719.86
• B) $1,537.27
• C) $2,128.56
• D) $3,902.44

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Definitions:

Dependent Variable

In experimental and statistical research, the variable that is being tested and measured, and is expected to change as a result of manipulations to the independent variable.

Random Assignment

A method used in experiments where participants are assigned to different groups in a manner that ensures each has an equal chance of being placed in any group.

Experimental Group

A group of participants in a study that receives the treatment or intervention being tested, allowing researchers to assess the effect of the treatment.

Statistical Significance

Statistical Significance is a measure of how likely it is that an obtained result in a study is due to chance, used to assess the reliability of the observed differences or relationships in data.