Find the amount of periodic payment necessary for the deposit to a sinking fund:

Question

A=50,000 n=semiannually , r=13%, t=15 yrs.

Answer 1

Let P be the semiannual payment

P(1.065^30 - 1)/.065 = 50000

P = 578.87

Answer 2

R = A (r/n)/(1+ r/n)^nt -1))
R = 50000(.13/2)/(1+ .13/2)^30 -1))
50000(0.065)/((1.065)^30 -1))

$578.85