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In the following ordinary annuity, the interest is compounded with each payment, and the payment is...

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

find the amount of time needed for the sinking fund to reach the given accumulated amount. Round your answer to two decimal places.

$285 monthly at 5.7% to accumulate $25,000
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Answer #1

hi, i have given answer of period required both in year as well as in month.. take the answer as per the requirement of the question..

We have to use financial calculator to solve this
put in calculator-
PV 0
PMT -285
I 5.7%/12 0.4750%
FV 20*12 25000
compute N            73.50
Number of year requied =              6.13 year
73.5/12
Or 73.5 month
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