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
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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
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.
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