Math, Finance

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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 -

    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.

  • Math, Finance -

    PMT= $2363.1

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