SOLUTION: A company establishes a sinking fund for upgrading office equipment with monthly payments of 2000 into an account paying 6.6% compounded monthly.How long will it be before the acc
Algebra.Com
Question 1131417: A company establishes a sinking fund for upgrading office equipment with monthly payments of 2000 into an account paying 6.6% compounded monthly.How long will it be before the account has 100000
Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!
Standard sinking fund (future value annuity) problem; unknown is an exponent, so solution requires logarithms, or a graphing calculator.
payment amount: 2000
future value: 100000
periodic interest rate: .066/12 = .0055
number of periods: x
to 2 decimal places
ANSWER: It will take 45 months for the account to reach (more than) 100000.
RELATED QUESTIONS
Find the periodic payments PMT necessary to accumulate the given amount in an annuity... (answered by ElectricPavlov,ikleyn)
WORKSHEET 2
Interest
Simple Interest
Simple Discount
Compound Interest
Solve for... (answered by ikleyn)
Assume that you have $2100 saved in a sinking fund in 1 year. The account pays 3.5%... (answered by MathLover1)
A company wants to set up a sinking fund for the repayment of a loan of 100million at the (answered by Theo)
Can someone please help me! I don't understand thank you!
Problem:
Find the... (answered by MathTherapy)
Paul and Donna Kelsch are planning a Mediterranean cruise in 3 years and will need $9,500 (answered by ikleyn)
Please help me solve this word problem about Compounded Account(s):
The Otwell Company... (answered by Theo)
You are the vice president of finance for a manufacturer of scuba diving gear. The... (answered by Theo)
Assume that you want to have $ 1900 saved in a sinking fund in 1 year. The account pays... (answered by ikleyn)