Question

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the required payment for the sinking fund. (Round your answer to the nearest cent.)

Yearly deposits earning 12.8% to accumulate $6500 after 12 years.

Solve the system by graphing. (Enter your answers as a comma-separated list. If the system is inconsistent, enter INCONSISTENT. If the system is dependent, enter DEPENDENT.) 5x + y = 6 1x - y = 2 (x,y) = ( )

Answer 1

Given,

Interest rate (r) = 12.8% or 0.128

Future value of annuity = $ 6500

Years (n) = 12 years

Solution :-

Let required payment be 'A'

of annuity Future Value = A (1+277-1] 6500 - [1 +0.128)2-1] bsoo x 0. 128 = A [1.120)2-1] 832 = A (4.24335333 - 1] 832 = A 13.84335333] 3.58335333 = A 3.79335333 Polo 256.52 = A Thus, the the required payment for sinking fund is $256.52