For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity). (Roundyour answer to the nearest cent.)Sinking FundPaymentTime PeriodNominalInterestPaymentFrequencyFuture Value(years)Rate (%)Compounded(Objective)every year148annually$350,000Enter a number. Periods2%1%1%2%3%4%5%6%7%8%Periods11.000001.000001.000001.000001.000001.000001.000001.000001.000001.00000122.005002.010002.015002.02000 2.030002.040002.050002.060002.070002.08000233.015023.030103.045223.06040 3.090903.121603.152503.183603.214903.24640344.030104.060404.090904.12161 4.183634.246464.310134.374624.439944.5061145.050255.101015.152275.20404 5.309145.416325.525635.637095.750745.866606.075506.152026.229556.30812 6.468416.632986.801916.975327.153297.335936.77.105887.213547.322997.43428 7.662467.898298.142018.393848.654028.92280788.141418.285678.432848.58297 8.892349.214239.549119.8974710.2598010.636638.99.182129.368539.559339.75463 10.15911 10.58280 11.02656 11.4913211.9779912.487569.1010.2280310.46221 10.70272 10.94972 11.46388 12.00611 12.57789 13.1807913.8164514.48656101111.27917 11.56683 11.86326 12.16872 12.80780 13.48635 14.20679 14.9716415.7836016.64549111212.33556 12.68250 13.04121 13.41209 14.19203 15.02581 15.91713 16.8699417.8884518.97713121313.39724 13.80933 14.23683 14.68033 15.61779 16.62684 17.71298 18.8821420.1406421.49530131414.46423 14.94742 15.45038 15.97394 17.08632 18.29191 19.59863 21.0150722.5504924.2149214

Sinking fund is the amount kept aside for paying a loan or debt. Sinking fund enables the business…

Answered: 1 to calculate the amount (in $) of the…

1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity).

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity). (Round
your answer to the nearest cent.)
Sinking Fund
Payment
Time Period
Nominal
Interest
Payment
Frequency
Future Value
(years)
Rate (%)
Compounded
(Objective)
every year
14
8
annually
$350,000
Enter a number.

Periods
2%
1%
1%
2%
3%
4%
5%
6%
7%
8%
Periods
1
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1
2
2.00500
2.01000
2.01500
2.02000 2.03000
2.04000
2.05000
2.06000
2.07000
2.08000
2
3
3.01502
3.03010
3.04522
3.06040 3.09090
3.12160
3.15250
3.18360
3.21490
3.24640
3
4
4.03010
4.06040
4.09090
4.12161 4.18363
4.24646
4.31013
4.37462
4.43994
4.50611
4
5.05025
5.10101
5.15227
5.20404 5.30914
5.41632
5.52563
5.63709
5.75074
5.86660
6.07550
6.15202
6.22955
6.30812 6.46841
6.63298
6.80191
6.97532
7.15329
7.33593
6.
7
7.10588
7.21354
7.32299
7.43428 7.66246
7.89829
8.14201
8.39384
8.65402
8.92280
7
8
8.14141
8.28567
8.43284
8.58297 8.89234
9.21423
9.54911
9.89747
10.25980
10.63663
8.
9
9.18212
9.36853
9.55933
9.75463 10.15911 10.58280 11.02656 11.49132
11.97799
12.48756
9.
10
10.22803
10.46221 10.70272 10.94972 11.46388 12.00611 12.57789 13.18079
13.81645
14.48656
10
11
11.27917 11.56683 11.86326 12.16872 12.80780 13.48635 14.20679 14.97164
15.78360
16.64549
11
12
12.33556 12.68250 13.04121 13.41209 14.19203 15.02581 15.91713 16.86994
17.88845
18.97713
12
13
13.39724 13.80933 14.23683 14.68033 15.61779 16.62684 17.71298 18.88214
20.14064
21.49530
13
14
14.46423 14.94742 15.45038 15.97394 17.08632 18.29191 19.59863 21.01507
22.55049
24.21492
14

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May I ask for an explanation of the question for a better understanding. Thank you! Which of the following statements is NOT TRUE? a. In an annuity due, payments occur at the beginning of the period. b. A perpetuity will never mature at any point in future. c. The present value of a perpetuity can be calculated. d. In an ordinary annuity, payments occur at the beginning of the period.
The deferral period lasts from the original deposit date (lump sum) up until the start of the term for the annuity. True 6. False
Questions attached
use the formula that is applicable.
The larger the periodic payment of an annuity, the greater its present value. True or False?
Distinguish between the present value of $1 and the present value of an annuity due of $1.
Explain the relationship between Table 2, Present Value of $1, and Table 4, Present Value of an OrdinaryAnnuity of $1.
10. Perpetuities Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpetuities, answer the following questions. Which of the following are characteristics of a perpetuity? Check all that apply. The present value of a perpetuity is calculated by dividing the amount of the payment by the investor's opportunity interest rate. A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future. ☐ A perpetuity continues for a fixed time period. In a perpetuity, returns-in the form of a series of identical cash flows-are earned. Your grandfather wants to establish a scholarship in his father's name at a local university and has stipulated that you will administer it. As you've committed to fund a $15,000 scholarship every year beginning one year from tomorrow, you'll want to set aside the money for the scholarship immediately. At tomorrow's meeting with your grandfather and the bank's…
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