Question

Find the periodic payments necessary to accumulate $20,000 in a sinking fund paying 4% per year, with monthly payments for 5 years. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.)

Answer 1

Work it like a savings account accumulation problem in which you have to accumulate $20,000 in 5 years while earing 4% interest, compounded monthly.

This website does it automatically, if you choose the right calculator:

http://www.ajdesigner.com/phpdiscountfactors/uniform_series_compound_amount_equation.php

I get $301.66 per month