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.
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?