document.write( "Question 1071790: Can someone please help me! I don't understand thank you!\r
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\n" ); document.write( "\n" ); document.write( "Find the periodic payments PMT necessary to accumulate $40,000 in a sinking fund that pays 7% per year, with monthly payments for 5 years (assume monthly compounding). \n" ); document.write( "

Algebra.Com's Answer #686715 by MathTherapy(10552) $\"\"$ $\"About$

You can put this solution on YOUR website!
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\n" ); document.write( "\n" ); document.write( "Can someone please help me! I don't understand thank you!\r
\n" ); document.write( "\n" ); document.write( "Problem:\r
\n" ); document.write( "\n" ); document.write( "Find the periodic payments PMT necessary to accumulate $40,000 in a sinking fund that pays 7% per year, with monthly payments for 5 years (assume monthly compounding).
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The formula for the PAYMENT, per period, to an ORDINARY ANNUITY should be used.
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document.write( "This is EITHER:    OR   , where:
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document.write( "  = Monthly Payment (Unknown, in this case)
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document.write( " = The future value in the amount of time (years), or the amount that will be available then ($40,000, in this case)
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document.write( "    = Interest rate, per year (7%, or .07, in this case)
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document.write( "    = Number of compounding periods per year (monthly, or 12, in this case)
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document.write( "    = Time, in years, the money is invested (5, in this case)
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document.write( "Each MONTHLY payment or  \n" );
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