SOLUTION: A sinking fund is established to obtain $75,000 in five years. The interest rate is 10% and payments are made quarterly. Find the periodic payments. I have an answer after l

Question 45423This question is from textbook Finite math
: A sinking fund is established to obtain $75,000 in five years. The interest rate is 10% and payments are made quarterly. Find the periodic payments.
I have an answer after looking at the PVIFA table but I'm having trouble with this question. My answer is #3,750.00 but I'm not sure. Thanks for any help given. This question is from textbook Finite math

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A sinking fund is established to obtain $75,000 in five years. The interest rate is 10% and payments are made quarterly. Find the periodic payments.

Future Value = Periodic payment/i
[75000*i)/[(1+i)^n-1] = pp
pp = 1875/[(1.025)^20-1]
pp = 1875/0.63861644
Periodic Payment = $2936.03
Cheers,
Stan H.
RELATED QUESTIONS
a sinking fund is established to obtain 75000 in five years.The interest rate is 10% and... (answered by Boreal)

A sinking fund is established to obtain $75,000 in five years. The interest rate is 10%... (answered by jim_thompson5910)

A city has issued bonds to finance a new convention center. The bonds have a total face... (answered by Boreal)

A sinking fund is established to discharge a debt of R30 000 in 25 yrs if deposits are... (answered by greenestamps)

a sinking fund is being established, the goal of which is to reach 100,000. calculate the (answered by Boreal)

Desmond will discharge a debt of R500 000 six years from now, using the sinking fund... (answered by Theo)

Find the amount of each payment to be made into a sinking fund which earns 8%... (answered by MathTherapy)

Find the amount of each payment to be made into a sinking fund which earns 5%... (answered by ikleyn)

. A ₱1.5M trust fund is created by depositing ₱40,000 quarterly at 16% compounded... (answered by Theo)