SOLUTION: a sinking fund is established to obtain 75000 in five years.The interest rate is 10% and payments are made quarterly. Find the periodic payments
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Question 1131366: a sinking fund is established to obtain 75000 in five years.The interest rate is 10% and payments are made quarterly. Find the periodic payments
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
payments=A(r/n) divided by (1+(r/n))^nt-1
=75000(.10/4)/(1.025)^20-1, the 20 being the number of total payments.
=1875/0.6386. Round at end
=$2936.03
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