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

Business & Finance
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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

Nov 21st, 2015

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
Nov 21st, 2015

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