<PRE><B>Question 45423</B>
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*[(1+i)^n-1]/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.</PRE>