Payment per period (A)
—
- A
- uniform amount per period
- F
- future value target
- i
- interest rate per period
- n
- number of periods
Worked example · Reaching $5,000 in 7 periods at 5% needs $614 set aside each one.
Eq.04 · Uniform series
Sinking Fund
Works backward from a future amount you need to find the equal payment to set aside each period to get there.
A = F · i / [(1 + i)^n - 1]