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 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"