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

Anonymous
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 \$28,000 in 10 years,  money earns 10% compounded quarterly,   40 quarterly payments

psumanrec
School: New York University

We have the formulas

Given,FV=\$28,000

i=10/4 =2.5% =.025

n=40

Substitute the value and solve for PMT.

Thus amount of money in the shrinking fund=\$415.41

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Anonymous
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