Question

Find the amount accumulated in the sinking fund if $200 is deposited monthly for 14 years at 3% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest dollar.)

Answer 1

Find the amount accumulated in the sinking fund if $1600 is deposited quarterly for 20 years at 6% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest dollar.)

Answer 2

monthly rate = .03/12 = .0025
no of months in 14 years = 168
so Amount = 200[1.0025^168 - 1]/.0025
= $41693 to the nearest dollar