A company wants to set up a sinking fund to repay a loan of $10,000 in 5 years. If the sinking fund earns an annual interest rate of 6%, how much should the company deposit into the sinking fund each year? 1. $2170 2. $1560 3. $1254 4. $2,000 C
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- On a loan of $1400, interest at 9% effective must be paid at the end of each year. The borrower also deposits $X at the beginning of each year into a sinking fund earning 4.7% effective. At the end of 10 years the sinking fund is exactly sufficient to pay off the loan. Calculate X. A. $ 1617.11 B. $ 1078.07 C. $ 1347.59 D. $ 1724.92 E. $ 1232.09If K40, 000 is deposited at the end of each half year in an account that earns 6.2% compounded semiannually, how long will it be before the account contains k1, 200, 000? b. When you establish a sinking fund, which interest rate is better? Explain.i. (a) 10% (b) 6% ii. (a) 12% compounded monthly (b) 12% compounded annuallyc. If k2500 is deposited at the end of each quarter in an account that earns 5% compounded quarterly, after how many quarters will the account contain k80, 000?d. A lottery prize worth k 2,400,000 is awarded in payments of k 20,000 at the beginning of each month for 20 years. Suppose money is worth 7.8%, compounded monthly. What is the real value of the prize?e. A couple who borrow K90, 000 for 30 years at 7.2%, compounded monthly, must make monthly payments of K610.91. (a) Find their unpaid balance after 1 year.(b) During that first year, how much interest do they pay?f. The first term of a GP represents the number of tins of beans sold in Food Lovers the week before…A bank makes an amortizing loan of $200,000 with a maturity of 8 years and equal payments every year. What is the principal outstanding at the end of year 6 if the interest rate is 6%? A $27,041.78 B $30,384.41 C $59,048.42 D $86,092.20
- Which of the following is the approximate internal rate of return for an investment that costs $33,550 and provides a $5,000 annuity for 10 years? A) 5% B) 6% C) 8% D) 10%A $3,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. A. present valueB.sinking fund C.present value of an annuityD.amortizationE.ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.)Scenario Sinking funds are used to provide money to pay off a loan in one lump sum or to accumulate money to build new factories, buy equipment, and so on. The payment needed at the end of each period to accumulate a fixed amount in a sinking fund at a specific future date is found as follows. Answer the following question and explain your steps toward the solution: A business needs $450,000 in five years. How much should be deposited each quarter in a sinking fund that earns 9% compounded quarterly to have this amount in five years?
- A property has NOI of $4,000,000. One hope to borrow $50,000,000 at 4.25% payable monthly in arrears fully amortizing over 30-years. The bank requires a minimum DSC of 1.40 times. What is the maximum amount can borrow assuming the same interest rate and payment terms?determine the size of the payments that must be made to a sinking fund in order to accumulate $233,188 if the interest rate is 5.25% compounded quarterly and payments are made for 7 1/4 years. Use TVM solverNeed answer please
- an a&e firm planning for a future expansion deposited $36000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return. if the account had a total of $454000 immediately after the fifth deposit, what rate of return did the company make on these deposits?A borrower can borrow $10 million at a fixed-rate loan at 7.5% for six years. After some consideration, he chooses the fixed rate loan. using discount rate 7%. The present value of all interests is $2,656, 878 $2,787,659 $4096534 $2,577,321 $3,574,905A real estate investment has the following expected cash flows: Year Cash Flows 1 $15,000 2 14,000 3 19,000 4 21,000 The discount rate is 6 percent. What is the investment’s present value? Round your answer to 2 decimal places; for example 2345.25.



