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A sinking fund is set up with an annual interest rate of 15% which is compounded monthly. If a $900 payment...
11. A sinking fund is set up with an annual interest rate of 15% which is compounded monthly. If a $900 payment is made at the end of each month, calculate both the interest earned and the account balance at the end of the third month.
Period | Amount of Deposit | Interest Earned | Account Balance
1 | $900 | $0.00 | $900
2 | $900 | |
3 | $900 | ?? | ??
A) At the end of the third month, the interest earned is $22.64, and the account balance is $2,733.89.
B) At the end of the third month, the interest earned is $22.64, and the account balance is $2,711.24.
C) At the end of the third month, the interest earned is $22.48, and the account balance is $2,722.48.
D) At the end of the third month, the interest earned is $11.24, and the account balance is $2,711.24.
Period | Amount of Deposit | Interest Earned | Account Balance
1 | $900 | $0.00 | $900
2 | $900 | |
3 | $900 | ?? | ??
A) At the end of the third month, the interest earned is $22.64, and the account balance is $2,733.89.
B) At the end of the third month, the interest earned is $22.64, and the account balance is $2,711.24.
C) At the end of the third month, the interest earned is $22.48, and the account balance is $2,722.48.
D) At the end of the third month, the interest earned is $11.24, and the account balance is $2,711.24.