Find the monthly payment needed to have a sinking fund accumulate a future value of $18,000. The yearly interest rate is 10.8% and the number of payments is 21. Interest is compounded monthly. In your calculations, do not round until the final answer. Then, round the monthly payment to the nearest cent.

Question

paki · Answer

with payments at the beginning of each month...

FV = PMT * (1.009)(1.009^21-1) / .009

PMT = (18000*.009 /1.009)/(1.009^21-1) = $775.55 <--------

if payments are at the end of each month, $782.53 <---------

anonymous · Answer

ok so 782.53 makes it the final answer? @paki

paki · Answer

yeah... i have written it...

anonymous · Answer

thank you!

anonymous · Answer

btw, do you know how I can insert the formulas into the TI-84 calculator?
For ex. A=R[(1+r/m)mt-1/r/m] ?

paki · Answer

pleasure