Question
In: Finance
What is the monthly sinking fund payments required to accumulate $410,000 after 30 years given that...
What is the monthly sinking fund payments required to accumulate $410,000 after 30 years given that interest rate is 10.0%?
Solutions
Expert Solution
Let the monthly payment be A. The per month interest rate will be = 10/12 = 0.833%. So
410000 = A x (1.00833 + 1.00833^2 +... + 1.00833^360) = A x 1.00833 x (1.00833^360 - 1)/(0.00833)
A = 180.03
jeff jeffy answered 2 years agoRelated Solutions
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