7. find the amount of the payment for the sinking fund. amount needed: $58,000 years until needed: 2 interest rate: 6% interest compounded: semiannually $13,863.74 $8,620.68 $28,155.52 $13,258.22

SFF = (r/n)/{(1+r/n)^nt-1} where SFF = Sinking fund factor, r = Annual interest rate, n= number of payments per year, t = number of years

Substituting,
SFF = (0.06/2)/{(1+0.06/2)^2*2 -1} = 0.239

PMT = A*SFF = 58,000*0.239 = $13,863.57 The closest answer is $13,863.74

The answer is x>1 or x<-3