Ask Question
1 March, 21:54

Claudine Corporation will deposit $5,000 into a money market sinking fund at the end of each year for the next five years. How much will accumulate by the end of the fifth and final payment if the sinking fund earns 9% interest?

+3
Answers (1)
  1. 1 March, 23:21
    0
    Claudine Corporation will accumulate 32616,67

    Explanation:

    The formula of interest is A=P (1+r) ⁿ

    A=Final amount

    P = Principal (deposit)

    r = interest rate

    n = time

    Claudine Corporation will make 5 deposits, 1 per year. We are going to calculate how much will be accumulate per year:

    A 1 year = 5000 (1+0,09) ⁵=7693,12

    A 2 year = 5000 (1+0,09) ⁴=7057,90

    A 3 year = 5000 (1+0,09) ³=6475,15

    A 4 year = 5000 (1+0,09) ²=5940,5

    A 5 year = 5000 (1+0,09) ¹=5450

    Total amount=7693,12 + 7057,90 + 6475,15 + 5940,5 + 5450 = 32616,67
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Claudine Corporation will deposit $5,000 into a money market sinking fund at the end of each year for the next five years. How much will ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers