Homework Help: Math, Finance

Posted by Debra on Wednesday, November 9, 2011 at 9:14pm.

Parents have set up a sinking fund in order to have $120,000 in 15 years for their children's education. How much should be paid semiannually into an account paying 6.8% compounded semiannually?

PMT = FV ____i_____
(1 + i)^n – 1

Math, Finance - tchrwill, Thursday, November 10, 2011 at 10:54am
You have the right formula typically shown in the form or
Ri = Sn/[(1+i)^n - 1]

Sn = 120,000
n = 15x2 = 30
i = .068/2 = .034

Make the keys dance.

Answer this Question

Related Questions

Math - The management of Gibraltar Brokerage Services anticipates a capital ...
Math sinking payment - Could some one please explian What is a sinking fund ...
Math - Jeff Associates borrowed $30,000. The company plans to set up a sinking ...
Math - Jeff Associates borrowed $30,000. The company plans to set up a sinking ...
college - A company is considering the purchase of a forest that is estimated to...
Business Finance - I came up with 4.80 per share for the question. A mutual fund...
math - What sinking fund payment would be required at the end of each three-...
Finance - You wish to retire in 12 years and currently have $50,000 in a savings...
accounting - novelty industries is establishing a sinking fund to redeem rs ...
Bus Finance - You want to purchase a home. cost $165,000. you have $40,000 ...

For Further Reading

First Name:
School Subject:
Answer: