Question

6 Q097 Sinking Fund Veronica wants to set up a sinking fund in order to have $16,300. in 14 years. she can obtain an annual interest rate of 3.65%. Find the amount of payment she should pay into the fund at the end of each period in order to achieve this goal. Assume that the interest on the fund is compounded monthly and the payments are at the end of each month. Round your final answer to the nearest penny. 12 points

Answer 1

fox amount required in sinking fund A В C D E 1 $16,300 2 amount required in sinking fund monthly interest rate 3 0.304% 4 monthly periods 168 amount of payment she should pay into the fund at the end of each period $ 74.48 5 6 7 8 82 Ln OO

for formulas and calculations, refer to the image below -

fox amount required in sinking fund В2 A В C E 1 16300 amount required in sinking fund 2 monthly interest rate monthly periods =3.65%/12 - 14*12 4 amount of payment she should pay into the fund at the end |-РMT(С3,С4,0,-С2) of each period

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