Step 2 We determined i = 3% and there are n = 12 compounding periods. To use the formula, the interest rate per period must be expressed as a decimal. Converting ito a decimal gives i = 3% = 0.03. Tara wishes to have $26,000, so FV = 26,000. Substitute these values into the formula to find the amount of the sinking fund payments, rounding the result to the nearest cent. i sinking fund payment = FV X- (1 + i)" - 1 10.03 = 26,000 x (1 + 0.03)12 - 1 = $ 546.08 x Therefore, Tara can have $26,000 in 6 years by depositing, to the nearest cent, $ 546.08 X at the end of each six months into an account earning 6% compounded semiannually. Submit Skip (you cannot come back)