# Math

posted by .

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 -

Let the semi-annual payment be P

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

let me know what you got for P

## Similar Questions

1. ### Math

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?
2. ### calculus

The proprietor of Carson Hardware Store has decided to set up a sinking fund for the purpose of purchasing a computer 2 yr from now. It is expected that the purchase will involve a sum of 40000 dollars. The fund grows at the rate of …
3. ### Finance

Lance Industries borrowed \$130,000. The company plans to set up a sinking fund that will repay the loan at the end of 18 years. Assume a 6% interest rate compounded semiannually. What amount must Lance Industries pay into the fund …
4. ### math

The management of Gibraltar Brokerage Services anticipates a capital expenditure of \$23,000 in 4 years for the purpose of purchasing new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns …
5. ### Finance - Loans problem

A company borrows \$170000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments at the nominal annual rate of 7% compounded monthly. At the same time the company …
6. ### Finance - Loans problem

Can someone please explain how this problem is laid out to solve.A company borrows \$170000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments at the nominal …
7. ### Finance - Loans problem

Reiny the answer 307.33 you posted at the bottom is coming up incorrect. please if you can help i would be very grateful. A company borrows \$170000, which will be paid back to the lender in one payment at the end of 5 years. The company …