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In: Statistics and Probability

Find the interest rate needed for the sinking fund to reach the required amount. Assume that...

Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $40,000 to be accumulated in 11 ​years; annual payments of ​$2717

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Expert Solution

Therefore , from excel solver we get i = 0.0568030382289944

or i = 5.680%

Hence , the interest rate required is 5.680%

orchestra answered 2 years ago
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