# Math sinking payment

Could some one please explian What is a sinking fund payment..

Example at 8% interest compounded quarterly in order to reach \$20,000 with in five years the sinking payment would be required at the end of each three month period

1. 👍
2. 👎
3. 👁
4. ℹ️
5. 🚩

## Similar Questions

1. ### Math, Finance

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

2. ### math

Mary needs​ \$9000 in 11 years. What amount can she deposit in a sinking fund at the end of each quarter at 4​% interest compounded quarterly so she will have her​ \$9000? Round to the nearest cent.

3. ### Algebra 2

Claire has borrowed \$\\$5,\!000\$. She plans to pay off the loan in full after two payments. She will make one payment in 3 years, then another payment in 6 years. The second payment will be exactly double the amount of the first

4. ### Math

The management of Gibraltar Brokerage Services anticipates a capital expenditure of \$27,000 in 3 yr for the purpose of purchasing new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns

1. ### Math

Fritz benjamin buys a car costing \$8300. He agrees to make payment at the end of each month period for 8 years. He pays 7.2% interest compounded monthly. what is the amount of each payment? find the total amount of interest fritz

2. ### engineering economics

A) A company has issued 10-year bonds, with a face value of \$1,000,000 in \$1000 units. Interest at 8% is paid quarterly. If an investor desires to earn 12% nominal interest (compounded quarterly) on \$10000 worth of these bonds,

3. ### Economics/Finance

How much Jim can accumulate in a private pension fund over 20 years if the fund offers 5% interest compounded annually, and he can afford to deposit \$2,000 at the end of every 2nd year? My textbook says the correct answer is

4. ### Math

Connie wants to have an annuity payment of \$2,000 at the END of every three months. How much should she deposit now at 6% interest, compounded quarterly, to yield this payment for 3 years?

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

2. ### Math (Algebra 2)

Ann and Tom want to establish a fund for their​ grandson's college education. What lump sum must they deposit at a 9.39​% annual interest​ rate, compounded annually​, in order to have ​\$20,000 in the fund at the end of

3. ### algebra

Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer to the nearest cent.) Amount Needed A \$50,000 Frequency n semiannually Rate r 11% Time t 15 years Thank you for your time, it is

4. ### 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