Multiple Choice
Suppose a company establishes a sinking fund to replace equipment that has a salvage value of $50,000.The company deposits $20,000 into the fund at the end of every six months.If interest is earned at the rate of 8% compounded semiannually,the value of the fund at the end of six years is
A) $137,701.48.
B) $187,701.48.
C) $237,701.48.
D) $250,516.10.
E) $300,516.11.
Correct Answer:
Verified
Correct Answer:
Verified
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