6. A company wishes to spend P40,000 for a new office copier and decides to set up a sinking fund to accumulate this money over a 3-year period. If payments are to be made to the fund quarterly, with interest compounded quarterly at an annual rate of 5%, how large should the payments be? 7. How much must Brix place in his account at the end of each month in order to have P125,000 at the end of 4 years, if money is worth 6% compounded monthly?

6. A company wishes to spend P40,000 for a new office copier and decides to set up a sinking fund to accumulate this money over a 3-year period. If payments are to be made to the fund quarterly, with interest compounded quarterly at an annual rate of 5%, how large should the payments be? 7. How much must Brix place in his account at the end of each month in order to have P125,000 at the end of 4 years, if money is worth 6% compounded monthly?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 10RE: If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32...

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