Posted by **Anonymous** on Friday, November 11, 2011 at 4:43pm.

Jeff Associates borrowed $30,000. The company plans to set up a sinking fund that will repay the loan at the end of 8 years. Assume a 12 % interest rate compounded semiannually. What must Jeff pay into the fund each period of time?

- Math -
**Reiny**, Friday, November 11, 2011 at 5:03pm
let P be the payment

30000 = P(1.06^16 - 1)/.06

solve for P

- OOPS, (sorry Rick Perry) Math -
**Reiny**, Friday, November 11, 2011 at 5:04pm
that should have been

30000 = P(1 - 1.06^-16)/.06

- Math -
**Hope**, Sunday, October 30, 2016 at 9:15am
$30,000

End of 8 years

12% interest

8*2= 16 periods

12/2= 6%

Go to the table in your math procedures book and look under sinking fund table (Practical Business Math Procedures Jeffery Slater/ Sharon M. Whittry 12th edition Page 12.)

table =.0390

$30,000 * .0390= $1170.00

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