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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- Need answer correctly if image is blurr then please comment i will write values. dont give answer with incorrect data . i will give unhelpSolve correctly and no aiA company decides to borrow $100 000 at j1 = 12% in order to finance a new equipment purchase. One of the conditions of the loan is that the company must make annual payments into a sinking fund (the sinking fund will be used to pay off the loan at the end of 20 years). The sinking-fund investment will earn j1 = 6%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a) What is the amount of each sinking-fund payment if they are all to be equal? Amount of each sinking-fund 2$ b) What is the total annual cost of the loan? Total annual cost c) What overall annual effective compound interest rate is the company paying to borrow the $100 000 when account is taken of the sinking-fund requirement? Compound interest rate %
- An accounting firm agrees to purchase a computer for $180,000 (cash on delivery) and the delivery date is in 270 days. How much do the owners need to deposit in an account paying 0.85% compounded quarterly so that they will have $180,000 in 270 days? (a) State the type. sinking fund amortization present value future value ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.) $Classify the financial problem. Assume a 4% interest rate compounded annually. Find the value of a $1,000 certificate in 6 years. A. amortizationB.ordinary annuity C.present valueD. sinking fundE.future value Answer the question. (Round your answer to the nearest cent.)不 a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate Time Financial Goal $? at the end of each year 3% compounded annually 15 years $130,000 Click the icon to view some finance formulas. a. The periodic deposit is $ (Do not round until the final answer. Then round up to the nearest dollar as needed.) this View an example Get more help 4 Clear all Chec
- #7 A borrower takes out a loan of $2000 for two years. Construct a sinking fund schedule if the lender receives 10% effective on the loan and if the borrower replaces the amount of the loan with semiannual deposits in a sinking fund earning a nominal rate of discount at 8% convertible semiannually.A company wants to make a single deposit now so it will have enough money to purchase a beckhoe costing $60000 seven years from now A) if the account will earn interest of 12% per year, the amount that must be deposit can be calculated as? B)if the account will earn interest of 12% per year, the amount that must be deposited now is nearest to Option a)60,000 (F/P.12%7b.$27,138c 60,00 (P/F, 12%7d.$29,256e60,000 (F/A, 12%,7)f $28,326q5. An investment product will provide a cash flow of $613 at the end of each year for the following 18 years. At a discount rate of 8 percent, what does this investment worth to you today? Answer: $ q6. If you purchase an investment at $51,401 today, in return, you will receive a(n) 12 percent, 20 - year annuity. What will the annual cash flow be? Answer: $ q7. Your bank account offers an annual interest rate of 1.0% that compounds monthly. What is the effective annual rate (EAR) for your account
- Your bank offers to lend you $120, 000 at an 8.25% annual interest rate to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2? a. $5,904.06. b. $8,487.08 0 c. $6,642.06• d. $7,011.07. e. $9224.68a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate Time $? at the end of each year 5% compounded annually 14 years Financial Goal $130,000 Click the icon to view some finance formulas. a. The periodic deposit is $ ☐. (Do not round until the final answer. Then round up to the nearest dollar as needed.) b. S of the $130,000 comes from deposits and $ comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)The hotel you manage just purchased a new piece of property that is financed with a $800,000 amortized loan. If this loan is to be paid off in 4 equal, end-of-the-year annual payments and has an interest rate of 6.00%, how much of the third year's payment goes toward paying principal? Group of answer choices $205,476.32 $184,928.69 $230,873.19 $154,107.24 $200,000.00
