What is the amount of payment to be made into a sinking fund so that the indicated amount will be there when needed. Round to the nearest cent. $8500 in 4 years, money earns 5.5% compounded annually, 4 annual payments
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You want to make $8500 in your account in 4 year,therefore you are looking for the future value of the payment.
We have to calculate the present value of the amount.
We have the formula as
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