Use the Sinking Fund Formula to Determine the Payment Needed

question 27

Multiple Choice

Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to
the nearest cent.
-Annual payments with 8% interest compounded annually for 9 years to accumulate $5700

• A) $393.47
• B) $535.88
• C) $228.11
• D) $456.45

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Definitions:

Original Obedience Study

Refers to the research conducted by Stanley Milgram in the 1960s, which investigated the extent to which individuals would follow orders from an authority figure, even when the orders were to administer electric shocks to another person.

Subjects

Participants in a research study.

Arms Control

Measures aimed at controlling the development, testing, deployment, and proliferation of weapons, especially nuclear weapons, to reduce the potential for armed conflict and promote international security.

Pros and Cons

The advantages and disadvantages of a particular decision, course of action, or situation, considered to help make a more informed decision.