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.
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
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