# Interest impact on sinking fund factor

• Is calculated by the following formula:

Amount = ___i___ z(1+i)t-1 where i is the interest rate and t is expressed decimally (.05 for 5 percent). Also, t is the time and .5 refers to 1/2 of a year, 2 equals 2 years and 7.75 equals 7 3/4 years.

Embedded terms in definition
Interest rate
Interest
Time

Related Terms

 << Interest impact on present value of ordinary annuity of 1 per period Interest on interest >>

Tips for Trying to Fix a Clogged or "Frozen" Home Equity Line: For years, homeowners have turned to home equity lines of credit (HELOCs) as a way to borrow against their home's value to pay for college tuition, home improvements, medical bills and other major expenses. (A home's equity is the market value minus what is owed on the mortgage. If you owe \$100,000 on your mortgage but your home is worth \$250,000, your equity is \$150,000.) More...

I have never met a man so ignorant that I couldn't learn something from him. - Galileo Galilei