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    Show each formula and all work.

    #37: Find the amount of each payment that must be made into a sinking fund to accumulate each amount. (Recall, in a sinking fund, payments are made at the end of every interest period.)

    233,188; money earns 9.7% compounded quarterly for 7 3/4 years

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    #46: Find the amount of the payment necessary to amortize each loan.

    #32,000; 9.4% compounded quarterly; 17 quarterly payments.

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    Solution Preview

    #37: Find the amount of each payment that must be made into a sinking fund to accumulate each amount. (Recall, in a sinking fund, payments are made at the end of every interest period.)

    233,188; money earns 9.7% compounded quarterly for 7 3/4 years

    FVA = W x (1 + i)n - 1 where FVA is the future value
    ...

    Solution Summary

    This solution is comprised of a detailed explanation to compute the amount of each payment that must be made into a sinking fund to accumulate each amount and the amount of the payment necessary to amortize each loan.

    $2.19

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