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

Question 61

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

Correct Answer:

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