MT 1123 Study Guide - Final Guide: Sinking Fund
Document Summary
Suppose you deposit every month into an account that pays 5% interest. What must your annual deposits be if you would like to have ,000 after. You set up a sinking fund to help you save ,000 for a down payment on a house. You"re going to make monthly payments for 5 years that earn 5. 8% interest compounded monthly. Suppose you setup an ordinary annuity at 7% interest compounded monthly that will be worth ,000,000 on your 65th birthday. How much will your payments be if you start saving at:
