Question

Find the amount of each payment to be made into a sinking fund earning 6% compounded monthly to accumulate $14,000 over 5 years. Payments are made at the end of each period. The payment size is \$ $\boxed{}$ (Do not round until the final answer. Then round to the nearest cent.)

Name: find the amount of each payment to be made into a sinking fund earning 6 compounded monthly to accumulate 14000 over 5 years payments are made at the end of each period the payment size is b 06974
Uploaded: 2023-08-04T12:05:06-08:00
Duration: 3 min 40 s
Channel: Darryl Burns
Description: find the amount of each payment to be made into a sinking fund earning 6 compounded monthly to accumulate 14000 over 5 years payments are made at the end of each period the payment size is b 06974

          Find the amount of each payment to be made into a sinking fund earning 6% compounded monthly to accumulate $14,000 over 5 years. Payments are made at the end of each period.
The payment size is \$ $\boxed{}$
(Do not round until the final answer. Then round to the nearest cent.)

find the amount of each payment to be made into a sinking fund earning 6 compounded monthly to accumulate 14000 over 5 years payments are made at the end of each period the payment size is b 06974

Added by Jose Angel S.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Darryl Burns

08/04/2023

Step 1

We are given that $A = 14000$, $r = 0.06$, $n = 12$, and $t = 5$. The formula for the future value of an ordinary annuity is: $A = P \frac{(1 + \frac{r}{n})^{nt} - 1}{\frac{r}{n}}$ We want to find $P$. Show more…

Show all steps

Thanks for your feedback!

Find the amount of each payment to be made into a sinking fund earning 6% compounded monthly to accumulate $14,000 over 5 years. Payments are made at the end of each period. The payment size is \$ $\boxed{}$ (Do not round until the final answer. Then round to the nearest cent.)