A Sinking Fund Is Established with Monthly Deposits of $50

question 12

Multiple Choice

A sinking fund is established with monthly deposits of $50 earning an interest rate j₁₂ = 12%.If the balance immediately after the n^th deposit equals $1161.96,what was the balance immediately after the (n-1) ^th deposit?

• A)$1150.46
• B)$1123.08
• C)$1111.96
• D)$1100.95

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Definitions:

Rewriteable Format

A storage media format that allows data to be written, erased, and rewritten multiple times such as CD-RWs or DVD-RWs.

Gigahertz (GHz)

One billion hertz.

Clock Speed

The speed at which a processor executes instructions, typically measured in gigahertz (GHz).

Physical Memory

refers to the actual RAM (Random Access Memory) installed in a computer that is used to store data temporarily while the computer is running.