This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Section 5.3 – Amortizations and Sinking Funds 2 Example 2: A person would like to have $200,000 in an account for retirement 15 years from now. How much should be deposited quarterly in an account paying 6% per year compounded quarterly to obtain this amount? Example 3: A sailboat costs $16,000. You pay 15% down and secure a loan for the remaining balance. How much are your monthly payments if 18% per year compounded monthly is charged over a period of 6 years? Section 5.3 – Amortizations and Sinking Funds 3 Example 4: Christina plans to go to Disney World in two summers and wishes to have $7000 by then. How much money should she deposit monthly for the next 2 years in an account paying 3.25% per year compounded monthly to achieve this goal?...
View Full Document
- Spring '08
- Math, Payment, Period