sinking fund is established to discharge a debt of $40,000 in 5 years. If deposits are made at the end of each 6-month period and interest is paid at the rate of 7%, compounded semiannually, what is the amount of each deposit? (Round your answer to the nearest cent.) $

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
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A sinking fund is established to discharge a debt of $40,000 in 5 years. If deposits are made at the end of each 6-month period and interest is paid at the rate of 7%, compounded semiannually, what is the amount of each deposit? (Round your answer to the nearest cent.)

 

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