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A Sinking Fund Amounting to $115 000

question 97

Essay

A sinking fund amounting to $115 000.00 is to be created by making payments at the beginning of every six months for 6 years.Interest earned by the fund is 6.5% compounded semi-annually.Determine the size of the semi-annual payments and prepare a sinking fund schedule showing totals.


Definitions:

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Self-Esteem

An individual's subjective evaluation of their own worth, characterized by attitudes of approval or disapproval about oneself.

Persuaded

The act of being convinced to do or believe something through reasoning or argument.

Influenced

The capacity or power of persons or things to be a compelling force on the actions, behavior, opinions, etc., of others.

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