Question

A sinking fund amounting to

​$16,000

is to be created by making payments at the beginning of every

6 months

for

5

years. Interest earned by the fund is

9.6%

compounded

semi-annually.

Determine the size of the periodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule.

The size of the payment is

​$nothing.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

Complete the​ table, rounding each entry to the nearest cent.

​(Do not include the​ $ symbol in your​ answers.)

Payment Interval Number	Periodic Payment​ (Beginning)	Payment Interval Interest i=4.8%	Increase in Fund	Balance at End of Payment Interval
0	​-	​-	​-	0
1	nothing	nothing	nothing	nothing

2

nothing

nothing

nothing

nothing

3

nothing

nothing

nothing

nothing

4

nothing

nothing

Answer 1

Schh PV = I Govo $ Semj annually 9.6.7. ta syn PV = p (4+0).* p= 16000 X 48 you - (1 + 4.81-lo loo P= 2051-996 11 2052 2052 € 0 Payment et 2052 768 interest 16oo x 4.8 Too 性。 = Paid to porincipal remaing 2052-768 = 12 by & 16-60-120y = 14716 Payment and 2052 & interest = 1446 X 4.8 = 7060368 Paid to potroci pod = 2052 -706-368 1345.632 $ remaing balance = 14716- 1345.632 13370.366 $

w 2052 Payment arel interest paid to porincipal remaing = 13370.368 x 4-8 = 641.778 low 1410.222 = 11960.146 Payment 4th = 2052 & 1 1960.146x4,6 574.087 = 1497.813 © interest = 100 paid to porincipal semaing 10482.233 حه Ending balone Payment Periodic payment interest Increase in tund 16000 No. o 1284 768 14716 1 2052 4 13370.37 1345.63 70 6.368 le 2052 or to 6.37 11960.15 641.78 1410-22 2.52 3 . 10482.23 1477.91 2052 574.087 of 574.09 4: