Suppose a Company Establishes a Sinking Fund to Replace Equipment

question 110

Multiple Choice

Suppose a company establishes a sinking fund to replace equipment that has a salvage value of $50,000.The company deposits $20,000 into the fund at the end of every six months.If interest is earned at the rate of 8% compounded semiannually,the value of the fund at the end of six years is

• A) $137,701.48.
• B) $187,701.48.
• C) $237,701.48.
• D) $250,516.10.
• E) $300,516.11.

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Definitions:

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A pattern of growth and development in children where physical and motor skills progress from the center of the body outward to the extremities.

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A rapid increase in physical growth, often experienced during puberty, characterized by accelerated growth in height and weight.