Question 1071790


Can someone please help me! I don't understand  thank you!

Problem:

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).
<pre>The formula for the PAYMENT, per period, to an ORDINARY ANNUITY should be used.
This is EITHER: {{{highlight_green(highlight_green(PMT = FV[oa]/(((1+i/m)^(mt)-1)/(i/m))))}}}   OR   {{{highlight_green(highlight_green(PMT = FV[oa]/(((1+i/m)^(mt)-1) * (m/i))))}}}, where:
 {{{PMT}}} = Monthly Payment (Unknown, in this case)
{{{FV[oa]}}} = The future value in the amount of time (years), or the amount that will be available then <font color="red"><b>($40,000, in this case)</font></b>
   {{{i}}} = Interest rate, per year <font color="red"><b>(7%, or .07, in this case)</font></b>
   {{{m}}} = Number of compounding periods per year <font color="red"><b>(monthly, or 12, in this case)</font></b>
   {{{t}}} = Time, in years, the money is invested <font color="red"><b>(5, in this case)</font></b>
Each MONTHLY payment or {{{highlight(highlight_green(highlight(matrix(1,3, PMT, "=", "$558.71"))))}}}