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Use Tables 12-1 and 12-2 from Your Text to Answer

Question 123

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Use Tables 12-1 and 12-2 from your text to answer the following problems. (Round dollars to the nearest cent)
-Refer to Narrative in your text 12-1. Accurate Manufacturing Company established a sinking fund to pay off a $1,000,000 bond fund issue that comes due in 9 years.
A)What equal payments must be deposited into the fund every 3 months at 8% interest compounded quarterly in order for Accurate to meet this financial obligation?
B)How much total interest will they have earned?

Correct Answer:

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a.$19,232....

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