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I need support with this Business question so I can learn better.

What semiannually sinking fund payment would be required to yield \$45,000 nine years from now? The annual interest rate is 4% compounded semiannually. (Use 4% at 9 years = 0.944930) The sinking fund payment is? Round to nearest cent as needed.

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Future Value=FV = P [ (1 + i/c)^n - 1] / (i/c)

where:
FV = future value = \$45000
i = annual interest rate = 0.06
c = number of compounding periods in a year = 2
n = total compounding periods = 2*9 years = 18 periods
P = periodic payment

\$45000 = P [ (1 + 0.04/2)^18 - 1] / (0.04/2)
P = \$2101.62

Furious (72)
Purdue University
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