Question 1131415
<br>
Standard sinking fund (future value annuity) problem.<br>
payment amount: x
future value: 30000
periodic interest: 4.5% = .045
number of periods: 25*2 = 50<br>
{{{30000 = x((1.045^50-1)/.045)}}}
{{{30000 = x(178.503)}}}
{{{x = 30000/178.503 = 168.06}}} to 2 decimal places.<br>
ANSWER: the required deposit amount is $168.06