You have decided to set up a fund for the education of your future child. What is the amount that will be accumulated in this sinking fund at the end of 20 years if you deposit $1000 in the fund at each of the 20 years? Assume interest rate is 10%.

$  $47,275.00

Explanation:

A sinking funds entails setting aside for investment an equal amount of money invested at a certain rate of interest over a definite period of time to accumulate at target future amount.

The accumulated amount could either be for the repayment of a loan amount or to finance the acquisition of  a capital asset.

The total amount hat will accumulate in the fund at the end of 20 years will be determined using the formula below

FV = A × ( (1+r)^n - 1 )/r

A- 1000, n - 20, r = 10%

FV = 1,000 × ( (1.1^20) - 1 )/ 0.1

FV =1000   ×  47.2749

FV =$  47,275.00

FV =   $47,275.00

answer; ( prices are sticky);

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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