For the Sinking Funds, Use Table 12-1 from Your Text

question 49

Short Answer

For the sinking funds, use Table 12-1 from your text to calculate the amount of the periodic payments needed to amount to the financial objective (future value of the annuity), rounding to the nearest cent: $\begin{array}{llllll}\text { Sinking Fund } & \text { Payment } & \text { Time } & \text { Nominal } & \text { Interest } & \text { Future Value } \\ \underline{\text { Payment } }& \underline{ \text { Frequency }} & \underline{\text { Period } }& \underline{\text { Rate }} & \underline{\text { Compounded }} & \underline{\text { (Objective) }} \\ & \text { every year } & 20 \text { years } & 9 \% & \text { annually } & \$ 1,000,000\end{array}$

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