document.write( "Question 1147891: Find the amount of each payment to be made into a sinking fund which earns
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Algebra.Com's Answer #769231 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 effective quarterly rate yield \r\n" );
document.write( "presented as a decimal; n is the number of deposits (= the number of quarters in 2.5 years, i.e. 10, in this case).\r\n" );
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document.write( "From this formula, you get for the quartely 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 = $31,000;  r = 0.05/4;  n = 10.  So, according to the formula (1), you get for the monthly payment \r\n" );
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document.write( "    P = \"31000%2A%28%28%280.05%2F4%29%29%2F%28%281%2B0.05%2F4%29%5E10-1%29%29%29\" = $2929.60.\r\n" );
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document.write( "Answer.  The necessary monthly deposit value is $2929.60.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\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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