A company has a $170,000 note due in 5 years. How much should be deposited at the end of each quarter in a sinking fund to pay off the note in 5 years if the interest rate is 9% compounded quarterly

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4.5 years. If…

A: Final amount = $50,000Time = 4.5 years Rate = 6.23% compounded semi-annually

Q: What is the discounted value of payments of $38.00 made at the end of each year for 8 years if…

A: The time value of money is the foundational concept in finance which takes into account the effect…

Q: A 20 year loan of $100, 000 at i = 6% is paid off by paying 125% of each year’s interest at the end…

A: Term of Loan20yearsLoan amount100000Interest rate6%

Q: w much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in excel. FV function computes  future value for…

Q: Vanscoy Bank pays 6.6% simple interest on its investment accounts. If Vade Bank pays interest on its…

A: In this question, we are required to determine the rate compounded annually that would equal simple…

Q: How much must be invested at the beginning of each year at 6%, compounded annually, to pay off a…

A: The time value of money (TVM) is a key topic for investors to understand since the same amount of…

Q: Laurier Inc. has borrowed $ 65000 from its bank. The annual interest rate on the loan is 4%…

A: Solution Given Amount borrowed $65000 Interest rate 4% Compounding Annually…

Q: A company has a $160,000 note due in 3 years. How much should be deposited at the end of each…

A: Solution:- When an equal amount is deposited at end of each period, it is called ordinary annuity.…

Q: A bank makes a loan of $10,000. The loan will be paid back after 10 years with yearly payments of…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Please answer with details on how to do it. Thank you.  A company borrows $ 100,000 today at 6 %…

A: Annuities seem to be interest-bearing financial products that offer a steady steady flow of income…

Q: An investment company pays 4% compounded semiannually. You want to have $10,000 in the future. (A)…

A: Present value: Present value demonstrates that money received in the future will not be as valuable…

Q: Van Buren Resources Inc. is considering borrowing $100,000 for 202 days from its bank. Van Buren…

A: Given:Borrowing amount=$1000000 for 202 daysPayable amount $3000 of interest at maturityRepaid…

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4+1/2 years. If…

A: Final amount = $50,000Time = 4.5 years Rate = 6.23% compounded semi-annually

Q: You have a financial goal of $140,000. The rate is 3% compounded annually. The time is 16 years.…

A: Formula to calculate annual periodic deposit Annuity=FV *r[(1+r)n-1] Where, FV = Future value r =…

Q: If for the next 40 years you place $3,000 in equal year-end-deposits into an account earning 8% per…

A: The amount of $3,000 that is being placed in equal year end deposits is an annuity. The amount that…

Q: A bank offers an investment account that has an annual interst rate of 9.9%, compounded quarterly.…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A bank projects that the value of an account they hold will be $2, 000, 000 in 5 years. If the…

A: Future value (FV) = $2,000,000 Period (t) = 5 Years Interest rate (r) = 5% Mathematics constant (e)…

Q: Suppose that you have borrowed $125,000 in the form of a 30-year loan with an annual interest rate…

A: A loan payment includes the interest as well as the principal amount of loan which has been obtained…

Q: How much must be invested at the beginning of each year at 11%, compounded annually, to pay off a…

A: The problem relates to ANNUITY DUE. Annuity due is an annuity whose payment is due immediately at…

Q: A series of equal cash $50 that is deposited at the end of each month will last for 20 years. How…

A: Annual interest rate compounded monthly = 6%Monthly rate of interest r = 6%/12=0.5%Monthly deposits…

Q: A business received a for year $2,000,000 loan at an interest rate of 7% per year. The principal is…

A: NPV means PV of amount which is receive or pay in future. NPV can be find by using discounting rate…

Q: A loan of 15,000 is repaid by annual payments of principal starting one year after the loan is made,…

A: Present value is a financial concept that represents the current worth of a future sum of money or…

Q: A debt can be paid by payments of $1000 scheduled today, $500 schedule in two years, $2000 scheduled…

A: To settle the debt 4 years from now, a single payment of approximately $4291.39 would be required.…

Q: A bank pays 6% interest, compounded semiannuall formula to find how much should be deposited (in $…

A: Given, Interest rate = 6% or 0.06 Annual payment (A) = $700 Number of years = 16 years

Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the…

A: Liability Liability is define as the financial obligation on the company which are arises during the…

Q: How much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in exceL. FV function computes amount BALANCE in…

Q: Bank A pays 6% simple interest annually on its investment accounts. If Bank B pays interest on its…

A: Bank A: Simple Interest Rate (r) = 6% or 0.06 (Annually)Time Period (t) = 10 years…