Answered: Find the amount of each payment to be…

Find the amount of each payment to be made into a sinking fund earning 7 % compounded monthly to accumulate $33,000 over 9 years. Payments are made at the end of each period. The payment size is $

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 22E

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

Find the amount of each payment to be made into a sinking fund earning 7 %
compounded monthly to accumulate $33,000 over 9 years. Payments are made at the
end of each period.
The payment size is $
(Do not round until the final answer. Then round to the nearest cent.)

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