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What is the total amount of interest earned by sinking fund

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Question - Green Thumb Landscaping buys new lawn equipment every 3 years. It is estimated that $25,000 will be needed for the next purchase. The company sets up a sinking fund to save for this obligation.

a. What equal payments must be deposited every 6 months if interest is 8% compounded semi annually?

b. What is the total amount of interest earned by the sinking fund?

Reference no: EM133175088

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