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Home Q & A Board Science-Related Homework Help Mathematics
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jake82 jake82
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9 months ago
The town of Mount Hope is financing a $4.5-million upgrade to its water system through the province's Municipal Finance Authority. The MFA obtained financing via a bond issue with interest at 7.5% per annum payable semiannually. Also, at the end of every six months, the town is to make equal payments into a sinking fund administered by the MFA so that the necessary funds are available to repay the $4.5-million debt when it matures in 17 years. The sinking fund earns 4% compounded semiannually. Round the sinking fund payments and periodic interest earnings to the nearest dollar.


a) Calculate the size of the sinking fund payments.
b) How much will the fund increase in the 18th payment interval?
c) How much interest will the fund earn in the 10th year?
Textbook 
Business Mathematics in Canada

Business Mathematics in Canada


Edition: 11th
Authors:
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elacevedoelacevedo
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9 months ago
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jake82 Author
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9 months ago
Thanks
Fleury
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Yesterday
Just got PERFECT on my quiz
dri
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2 hours ago
Brilliant ツ
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