What is the semiannual payment to finance $200,000 in a sinking fund that pays 12% annual interest? Also, calculate the total deposits of the sinking fund and the interest earned by the semiannual payment.

## semiannual payment to finance $200,000 in a sinking fund

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# 1 Answer

How long is the loan for? Is there an interest rate on the original loan?

If it is asking what I think, we will just use the s

_{n}formula:FV = PMT ((1+i/m)

^{n(m)}- 1) / (i/m) , but without a time frame, we don't have an*m*.Any more info?

## Comments

iis the interest rate which is .12,min the number of compounds per year, semi annually means twice a year som= 2, n = 10 years the total time in years.n", not "we don't have anm"Comment