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

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

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

See similar textbooks

Related questions

Q: You just borrowed $203,584. You plan to repay this loan by making regular quarterly payments of X…

A: Thus, the required quarterly payment X=4,007 dollars.

Q: Help with questions 7-22.

A: 7-21. (Bondholders' Expected Rate of Return for Zenith Co. Bonds) 7-22. (Yield to Maturity for…

Q: I need answer typing clear urjent no chatgpt used pls i will give 5 Upvotes.

Q: Question 3 Footfall Manufacturing Ltd. reports the following financial information at the end of the…

A: Calculation of Gross ProfitGross Profit = Gross Profit Margin x Net Sales = 25%…

Q: Explain the changes in tax return preparation you would like to see in Alabama, based on what has…

A: While Alabama's tax system has its own unique characteristics, there are several changes inspired by…

Q: Please correct answer and don't used hand raiting

A: Future Value (FV) is a financial concept used to calculate how much money or an investment made…

Q: (2x76m A = + S) Waterfront Inc. wishes to borrow on a short-term basis without reducing its current…

A: The current ratio is a liquidity ratio that measures a company's ability to pay short-term…

Q: Fund F accumulates at a rate of δFt = 1/1 + t . Fund G accumulates at the rate of δGt = 4t/1 + 2t^2…

A: Steps and explanations are as follows:In case of any doubt, please let me know. Thank you.

Q: Problem Three (15 marks) You are an analyst in charge of valuing common stocks. You have been asked…

A: Problem Three: Stock ValuationThis problem deals with valuing stocks using the discounted dividend…

Q: What is Sears business problem? What cause Sears to collapse and closeout the company? Would you…

A: **Causes of Sears' Collapse:** 1. **Failure to Adapt to E-Commerce** - Sears lagged in online…

Q: Don't used Ai solution

A: Given:Call option details:Maturity: 6 monthsExercise price: $80Current price: $10$5000 invested in…

Q: Vaida’s Princess Playhouse Inc. was evaluating starting a Cinderella division. Vaida requires a…

Q: The return an investor in a security receives is the Blank______ of that security to the company…

A: The question pertains to the cost of capital. The cost of capital represents the expected returns on…

Q: 1.How is the valuation of firms involving in oil and gas production in-depth of their significant…

A: Question 1Valuation of Oil and Gas Firms: Relevance of Intangible AssetsEvaluating the companies in…

Q: Help with questions 7-24

A: Step 1:Market Price= $700Par Value (Face Value)= $1,000Annual Coupon Rate= 6% (or 0.06)Years to…

Q: Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1…

A: The question pertains to determining the cash flows and the cumulative surplus of operations while…

Q: (a) The variables have been stripped of their names. Which one do you think is "household income"…

A: (a) Identifying "household income"The variables you have are stripped of their names, and you're…

Q: A municipal bond you are considering as an investment currently pays a yield of 6.75 percent.…

A: The tax-equivalent yield (TEY) is calculated using the formula: TEY =Municipal Bond Yield / (1 −Tax…

Q: Figure 1 below displays the quarterly number of U.S. passengers (in thousands) using light rail as a…

Q: Provide Answer of This Financial Accounting Question And Please Don't Use Ai Becouse In all Ai give…

A: First, we need to calculate the total revenue and total variable cost for Wrightwood Manufacturing.…

Q: Wizzy Wigs is an unleveraged firm with $80 million in total assets, 2 million shares outstanding,…

A: Solution: Return on Equity (ROE) AnalysisWe need to determine the ROE for:The firm if it adopts a…

Q: An individual is planning for retirement and aims to withdraw $100,000 at the beginning of each…

A: Taking into account the goal of withdrawing $100 000 per year for 20 years during retirement and an…

Q: At the end of the year 2022 great lakes corporation paid its last dividends 3.94 per share. the…

A: To calculate the economic value of the stock at the end of 2022, we follow a multi-stage Dividend…

Q: 9. Calculating Payments [LO3] The Bandon Pine Corporation's purchases from suppliers in a quarter…

A: Sales$2,250$2,730$2,390$2,190$2,475 Q1Q2Q3Q4 Payments of accounts ( note -1)$1808$1963$1743$1714…

Q: What are the research assumptions, and the research limitations, please give examples for each one,…

A: 1. Research AssumptionsResearch assumptions are fundamental beliefs or conditions that researchers…

Q: An initial $3300 investment was worth $3820 after two years and six months. What quarterly…

A: The problem is asking us to find the nominal rate of return for an investment that was initially…

Q: 1. What does it mean the detailed report of Amazon, and what is the report of the primary work…

A: Detailed Explanation of Amazon's Business Valuation ProcessBusiness valuation is an important…

Q: You want to buy equipment that is available from 2 companies. The price of the equipment is the same…

Q: You own a stock portfolio invested 35% in Stock Q, 35% in Stock R, 15% in Stock S, and 15% in Stock…

A: Beta is a measure of a stock's risk in relation to the market or, alternatively, its sensitivity to…

Q: Don't used Ai solution

A: To determine the level of operating income (EBIT) at which Sand Key Development Company would be…

Q: A. In 2008, during the global financial crisis, Lehman Brothers, one of the largest investment…

A: The provide a comprehensive answer about the risks investors face when investing in corporate bonds,…

Q: 1. Consider two assets with the following returns: State Prob. of state R1 R2 1 2/3 .03 .05 2 1/3…

Q: Is globalization a real catalyst for enhancing international business? It is said that relevance of…

A: The Relevance of Globalization as a Catalyst for Enhancing International Business: Nepal's Struggle…

Q: No ai

A: The problem is asking us to calculate the expected returns of two assets (R1 and R2) given the…

Q: Two types of leasing using examples

A: 1. Operational Strategy:These are core business operations and efficiencies. Some of the key…

Q: What is the duration of a four-year Treasury bond with a 10 percent semiannual coupon selling at…

A: Step 1: Identify Cash FlowsDetermine all payments the bond will makeRegular coupon payments during…

Q: What was the amount of cash (and cash equivalents) that Airbnb reported for the year of 2024? State…

A: As of February 22, 2025, Airbnb has not yet released its comprehensive financial statements for the…

Q: Home Page - JagApp Week 15 - Homework #9 (100 points) i 9 10 points eBook Print References ווח…

A: Explanation: In the given case, the company provided a loan of $20,000 to its employee and accepted…

Q: Which of the following is true of taxable income? Multiple choice question. A company can deduct…

A: Taxable income is the amount of income that is used to calculate an individual's or a company's…

Q: Don't used Ai solution

A: To reach the target amount of $63,969 in 8 years, the future value contributions from both…

Q: Negative NPV. Multiple IRRs. Non-existent IRR. Negative profitability index.

A: A non-conventional cash flow is that cash flow in which there is more than one change in cash flows.…

Q: When a company's interest payment Blank______, the company's tax bill Blank______. Multiple choice…

A: In corporate finance, interest payments made by a company on its debt are considered as an expense.…

Q: Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he…

A: Step 1: Future Value of Current SavingsWe calculate the value of the current savings in 10 years…

Q: Ends Feb 23 Explain in detail what is Risk as defined for financial assets and what is Beta? Also…

A: Step 1: Explanation of Risk Risk in financial assets is uncertainty or potential for financial loss…

Q: Orchid Biotech Company is evaluating several different development projects for experimental drugs.…

A: Explanation for Part A (Capital Budget Constraint)The goal is to maximize the total Net Present…

Q: To determine the fair rate of return on capital for a regulated firm, regulators apply so called the…

A: The correct answer is 3. "fair rate of return". The fair rate of return rule is used by regulators…

Q: How does risk-adjusted return, such as the Sharpe Ratio, influence portfolio selection beyond just…

A: Risk-adjusted return measures like the Sharpe Ratio are important to effective portfolio choice…

Q: Suppose you open a savings account with Hillside Bank, where you also have your salaryaccount. The…

A: To find the amount of money that one would have in his savings account after 5 years, the formula to…

Q: To invest in a project, a company needs $50 million. Given its flotation costs of 7%, how much does…

A: The company needs $50 million to invest in a project. However, there are flotation costs of 7% that…

Q: XYZ stock price and dividend history are as follows: Beginning-of- $ 130 Dividend Paid at Year Year…

A: Question aMetricValueArithmetic time-weighted return3.22%Geometric time-weighted return2.24%…

Question

Option should be match.

please don't use ai

if option will not match means answer is incorrect .

Ai giving incorrect answer

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

AI-Generated Solution

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.

Unlock instant AI solutions

Tap the button
to generate a solution

Click the button to generate
a solution

SEE SOLUTION

Similar questions

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. $ 1232.09
If 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 solver
Need 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 $3,574,905
A 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.