Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. $81,000; money earns 5% compounded quarterly for 3 years $2147.80 $6298.42 $1820.14 $1955.08
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A sinking fund is a fund established by an economic entity by setting aside revenue over a period of time to fund a future capital expense, or repayment of a long-term debt. The formula for the sinking fund is: P = A / [(1 + r/n)^(nt) - 1] where: P = payment Show more…
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