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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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 sn 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?