Question

Parents have set up a sinking fund in order to have $120,000 in 15 years for their children's education. How much should be paid semiannually into an account paying 6.8% compounded semiannually?

PMT = FV ____i_____
(1 + i)^n – 1

Answer 1

You have the right formula typically shown in the form or
Ri = Sn/[(1+i)^n - 1]

Sn = 120,000
n = 15x2 = 30
i = .068/2 = .034

Make the keys dance.

Answer 2

PMT= $2363.1