Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

تمرين 148

Solve this application problems. Round to the nearest cent.
An engineer signs a contract to work in Hong Kong for 5 years. The contract specifies that at the end of his 5 years of service, he will receive $90,000 at the end of each of the following 3 years. Assume funds earn 6% compounded annually. (a) Find the amount needed at the end of his 5 years of service to fund the payments. ____________ (b) Find the end-of-year payment into a sinking fund needed to accumulate this amount. ____________