posted by Sabrina on .
Find the periodic payments necessary to accumulate $20,000 in a sinking fund paying 4% per year, with monthly payments for 5 years. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.)
Work it like a savings account accumulation problem in which you have to accumulate $20,000 in 5 years while earing 4% interest, compounded monthly.
This website does it automatically, if you choose the right calculator:
I get $301.66 per month