Find the periodic payments PMT necessary to accumulate the amount given in a sinking fund. HINT [See Example 2.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.)
845.32
To find the periodic payments (PMT) necessary to accumulate a specific amount in a sinking fund, you need to use the sinking fund formula. The sinking fund formula is:
PMT = A * (r / (1 - (1 + r)^(-n)))
Where:
- PMT is the periodic payment
- A is the desired accumulated amount
- r is the interest rate per period
- n is the number of periods
In this case, we have the desired accumulated amount, but we are missing the interest rate per period (r) and the number of periods (n). To find those, we need more information from the problem statement, specifically "Example 2."
Please provide the information from "Example 2" so I can continue with the calculation.