Answer:
$32.10
Step-by-step explanation:
The amount to be accumulated in 15 years is the future value of the sinking fund, hence, using the future value formula below, we can determine the required weekly payment as appropriate:
Future value=weekly payment*(1+r)^n-1/r
Future value=$35,000
weekly payment is the unknown
r=weekly interest rate=4.25%/52=0.08173077%
( I use 8 decimal places in order to achieve accuracy)
n=number of weekly payments in 15 years=15*52=780
35000=weekly payment*(1+0.08173077%
)^780-1/0.08173077%
35000=weekly payment*(1.89125311
-1)/0.000817308
35000=weekly payment*0.89125311
/0.000817308
weekly payment=35,000*0.000817308
/0.89125311
weekly payment=$32.10
