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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.

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
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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