document.write( "Question 1127932: A condominium association decided to set up a sinking fund to accumulate $80,000 by the end of 5 years to build a new sauna and swimming pool. What quarterly deposits are required if the annual interest rate is 6.2% and it is compounded quarterly? (Round your final answer to two decimal places.)
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Algebra.Com's Answer #744434 by ikleyn(52794)\"\" \"About 
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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    \r\n" );
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document.write( "where  FV is the future value of the account;  P is the quarterly payment (deposit); r is the quarterly percentage yield presented as a decimal; \r\n" );
document.write( "n is the number of deposits (= the number of years multiplied by 4, in this case).\r\n" );
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document.write( "From this formula, you get for for the quarterly payment \r\n" );
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document.write( "    P = \"FV%2A%28r%2F%28%281%2Br%29%5En-1%29%29\".     (1)\r\n" );
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document.write( "Under the given conditions, FV = $80,000;  r = 0.062/4;  n = 5*4.  So, according to the formula (1), you get for the quartely payment \r\n" );
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document.write( "    P = \"80000%2A%28%28%280.062%2F4%29%29%2F%28%281%2B0.062%2F4%29%5E%285%2A4%29-1%29%29%29\" = $3442.66.\r\n" );
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document.write( "Answer.  The necessary quarterly deposit value is $3442.66.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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