What is the amount of payment to be made in a sinking fund

Anonymous
timer Asked: Nov 21st, 2015
account_balance_wallet $5

Question Description

What is the amount of payment to be made in a sinking fund so that the indicated amount will be there when needed. Round to the nearest cent    $14,000 in 5 years,   money earns 8% compounded quarterly,   20 quarterly payments

Tutor Answer

psumanrec
School: University of Virginia

Thank you for the opportunity to help you with your question!

We have the formula as

FV=$14,000

i=rate of interest=8/4 =2%

n=20

Substitute and solve for PMT,

Thus $576.20 must be made into the shrinking fund.

Please rate my answer so that I can further help you in the future.Thanks

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Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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