Find the amount of the payment needed into a sinking fund.

| Amount Needed | Years Until Needed | Interest Rate | Interest Compounded | Amount of Payment |
|---|---|---|---|---|
| $250,000 | 10 | 8% | semiannually | |

Question

Find the amount of the payment needed into a sinking fund.

| Amount Needed | Years Until Needed | Interest Rate | Interest Compounded | Amount of Payment |
|---|---|---|---|---|
| $250,000 | 10 | 8% | semiannually |  |

Quizlet Admin · Accepted Answer

**Frist, lets find out the compounding period:**

Term of investment = 10 years

Semi annually compounding = 2

$$\begin{align*} \text{Compounding period} &= \text{Term of investment} \times \text{Semi annually compounding}\[7pt]&= 10 \times 2\[7pt] &= \text{20years} \end{align*}$$

So, compounding period is 20 year

Find the amount of the payment needed into a sinking fund.

Amount Needed Years Until Needed Interest Rate Interest Compounded Amount of Payment

$250,000 10 8% semiannually

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Related questions

Find the amount of the payment needed into a sinking fund. Amount Needed Years Until Needed Interest Rate Interest Compounded Amount of Payment $250,000 10 8% semiannually

Create an account to view solutions

Create an account to view solutions

Related questions

Find the amount of the payment needed into a sinking fund.

Amount Needed Years Until Needed Interest Rate Interest Compounded Amount of Payment

$250,000 10 8% semiannually