Answer:
Initial deposit = $ 60,241 (Rounding to the next whole dollar)
Step-by-step explanation:
1. Let's review the information given to us to answer the question correctly:
Future Value = 100,000
Interest rate = 0.03
N = 22
2. Let's calculate the initial deposit for the sinking fund, this way:
Future Value = Initial deposit * (1 + i*N)
Replacing with the real values:
100,000 = Initial deposit * (1 + 0.03 * 22)
100,000 = 1.66 Initial deposit
Initial deposit = 100,000/1.66
Initial deposit = $ 60,241 (Rounding to the next whole dollar)
