SOLUTION: a sinking fund is being established, the goal of which is to reach 100,000. calculate the payment, where i is the interest rate per period.

SOLUTION: a sinking fund is being established, the goal of which is to reach 100,000. calculate the payment, where i is the interest rate per period.

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Question 1182726: a sinking fund is being established, the goal of which is to reach 100,000. calculate the payment, where i is the interest rate per period.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=A*(r/n)/(1+(r/n))^nk-1
=100000*i /(1+i)^in-1, where A is the principal, P is the payment, n is number of years and i is the interest rate per period (not per year, unless it were 1 payment per year).
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