What Is the Size of the Sinking Fund Deposit for a Debt

question 67

Multiple Choice

What is the size of the sinking fund deposit for a debt that has an original principal of $40 000 over 12 years? The deposits are quarterly and the interest rate on the sinking fund is 4.21% compounded annually.

• A)$674.41
• B)$667.41
• C)$676.41
• D)$647.41
• E)$694.41

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