find the amount of each payment into a sinking fund so that a total of $6000 can be accumulated, with 9 annual payments and an interest rate of 4% compounded annually.

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∻Solution by Steps∻ ‖ step 1 ⋮ We start with the equation for the sinking fund: $ P \times \frac{(1 - (1 + 0.04)^{-9})}{0.04} = 6000 $ ‖ ‖ step 2 ⋮ Rearranging the equation to solve for $ P $: $ P = 6000 \times \frac{0.04}{(1 - (1 + 0.04)^{-9})} $ ‖ ‖ step 3 ⋮ Calculating $ (1 + 0.04)^{-9} $: $ (1 + 0.04)^{-9} \approx 0.6651 $ ‖ ‖ step 4 ⋮ Substituting back into the equation: $ P = 6000 \times \frac{0.04}{(1 - 0.6651)} $ ‖ ‖ step 5 ⋮ Simplifying further: $ P = 6000 \times \frac{0.04}{0.3349} \approx 806.958 $ ‖ ∻Answer∻ ⚹ The amount of each payment into the sinking fund is approximately $806.96 ⚹ ∻Key Concept∻ ⚹ Sinking Fund Calculation ⚹ ∻Explanation∻ ⚹ The sinking fund formula helps determine the regular payment needed to accumulate a specific amount over time, considering interest rates. In this case, with 9 payments and a 4% interest rate, the calculated payment is approximately $806.96. ⚹◊What formula can be used to calculate the amount of each payment into a sinking fund with given total accumulation, interest rate, and number of payments?⍭ Generate me a similar question◊

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