Business, 05.11.2019 20:31 brandonleekenyon

You want to take a dream "vacation in 3.5 years". you plan to save up "$5,000" in your vacation sinking fund. assume an interest rate of 8% compounded annually. how much will you have to save if you make a lump sum deposit to the sinking fund (i) during the year or (ii) at the beginning of the year?

(a) (i) $1,540 and (ii) $1,540
(b) (i) $1,640 and (ii) $1,640
(c) (i) $1,540 and (ii) $1,110
(d) (i) $1,640 and (ii) $1,310

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You want to take a dream "vacation in 3.5 years". you plan to save up "$5,000" in your vacation sink...