document.write( "Question 1131417: A company establishes a sinking fund for upgrading office equipment with monthly payments of 2000 into an account paying 6.6% compounded monthly.How long will it be before the account has 100000 \n" ); document.write( "

Algebra.Com's Answer #748946 by greenestamps(13200) $\"\"$ $\"About$

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\n" ); document.write( "Standard sinking fund (future value annuity) problem; unknown is an exponent, so solution requires logarithms, or a graphing calculator.

\n" ); document.write( "payment amount: 2000
\n" ); document.write( "future value: 100000
\n" ); document.write( "periodic interest rate: .066/12 = .0055
\n" ); document.write( "number of periods: x

\n" ); document.write( " $\"100000+=+2000%28%28%281.0055%29%5Ex-1%29%2F.055%29\"$
\n" ); document.write( " $\"50+=+%28%28%281.0055%29%5Ex-1%29%2F.055%29\"$
\n" ); document.write( " $\"%281.0055%29%5Ex-1+=+50%28.055%29+=+.275\"$
\n" ); document.write( " $\"1.0055%5Ex+=+1.275\"$
\n" ); document.write( " $\"x%2Alog%281.0055%29+=+log%281.275%29\"$
\n" ); document.write( " $\"x+=+log%281.275%29%2Flog%281.0055%29+=+44.29\"$ to 2 decimal places

\n" ); document.write( "ANSWER: It will take 45 months for the account to reach (more than) 100000. \n" ); document.write( "

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