Use Table 121 to calculate the amount of the periodic payments needed to amount to the financial objective (future value of the annuity) for the following sinking funds.
Sinking Fund  Payment  Time  Nominal  Interest  Future Value  
Payment  Frequency  Period (years)  Rate (%)  Compounded  (Objective)  
10.  every month 

6  monthly  $7,000 
To calculate: The amount of sinking fund payment where payment frequency is
Given Information:
Payment frequency is
Formula used:
Steps to compute the amount of sinking fund payment;
Step 1: First find the future value table factor from table 121 by using appropriate rate and number of periods of the sinking fund.
Step 2: Compute the amount of sinking fund payment.
The formula to compute the sinking fund payment is,
Calculation:
Consider that payment where payment frequency is
As the interest is compounded monthly. So, the interest rate period is;
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