A debt of $1500 bearing at 12% compounded annually is to be discharged by the sinking fund method. If six annual deposits are made into a fund which pays 6% compounded monthly. a. Find the annual interest payment b. Find the size of the annual deposit into the sinking fund. c. What is the annual cost of this debt? d. Construct the sinking fund schedule. Period Interest Sinking Fund Interest Deposit earned Sinking Fund Balance Net amount loan

Q: Maju City issued a RM700,500.00 face vale bond with four years until maturity. It will make…

A: Periodic deposit for sinking fund can be calculated by annuity from future value formula in excel…

Q: 4. In order to raise a fund at the end of 5 years, quarterly deposits of P200,000 were made at 4%…

A: A sinking fund is a fund set up by an organization or government to gradually accumulate money over…

Q: 4. A certain principal P was invested in a fund at a rate of 14% compounded monthly for the first…

A: Compound interest is the method in which the amount after a period is added back to the investment…

Q: Find the amount of periodic payment necessary for the deposit to a sinking fund Amount Needed A…

A: Periodic payment refers to an amount that is paid at each period including principal and interest…

Q: Find the amount of each payment to be made into a sinking fund so that enough will be present to…

A: The objective of the question is to find out the amount of each payment to be made into a sinking…

Q: Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer…

A: In the given question we need to compute the periodic payment amount if we need $50000 at the end of…

Q: An enterprise needs to set aside a fund to meet the following future annuity payments to an…

A: The payments are made at the beginning of each year. Therefore, there is an annuity due. The present…

Q: $1500 is invested semi-annually for 3 years into a fund that pays 6.8% per year, compounded semi-…

A: We have; Amount invested semi annually as $1500  Interest rate is 6.8% compounded semi annually Time…

Q: Using the sinking fund Table 13.3, complete the following: (Do not round intermediate calculations.…

A: Solution: Required future value = $25,700 Nos of quarterly period = 5*4 = 20 Quarterly interest rate…

Q: A company plans to make four annual deposits of $7,000 each to a special building fund. The fund's…

A: Deposit amount = $7,000Annual interest rate = 12%Number of years = 4 years

Q: Find the amount of each payment to be made into a sinking fund so that enough will be present to…

A: The objective of the question is to find the amount of each payment to be made into a sinking fund…

Q: * Erika Lagliva borrows 35,000 to be repaid for 9 years. (1) Find the total annual cost under the…

A: Loan Repayment: A loan once taken can be  repaid either by  making constant periodic payments…

Q: A sinking fund amounting to $19,000 is to be created by making payments at the beginning of every 6…

A: in this you have to find out future value FACTOR and sinking fund required.

Q: Pharoah Company issued $1,100,000, 12-year bonds and agreed to make annual sinking fund deposits of…

A: A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company…

Q: A sinking fund is established to discharge a debt of $60,000 in 15 years. If deposits are made at…

A: using financial calculator, N =15*2 =30 I/Y = 4/2 =2 PV = 0 FV = -60000

Q: Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the…

A: FV = $1,000,000 r = 5.8% Number of compounding per year (m) = 2 Period (t) = 30 Years

Q: What annual deposit into a sinking fund at 5% compounded annually will be needed to raise half a…

A: P500000 is needed at the end of 10 years. The Fair value at the end of 10 years = Annual Deposit x…

Q: 4. A sinking fund amounting to $15,000 is to be created by making payments at the beginning of every…

A: Sinking fund (SF) is a type of account which is created to accumulate the required amount after a…

Q: Six annual deposits in the amount of $4,000, $3,300, $2,600, $1,900, $1,200 and $500, in that order,…

A: Future Value(FV) is compounded value of present amount at future date.

Q: Use the sinking fund formula shown to the right to determine the semiannual payments with 6​%…

A: Sinking fund formula can be used to calculate the semiannual payment to accumulate the the amount.…

Q: A company plans to make four annual deposits of $3,500 each to a special building fund. The fund's…

A: Annual deposit = $3500Interest rate = 12%Number of years = 4To find: Fund balance after 4 years when…

Q: Equal deposits are made into a sinking fund at the end of each year for seven years. Interest is…

A: A sinking fund is a fund set up to pay off future debt. A fixed amount is put in at regular…

Q: Eight equal deposits of $1,000 are made at the end of each year into a fund paying 8%. a. What is…

A:

Q: Find the amount of each payment to be made into a sinking fund earning 9% compounded monthly to…

A: Data given: A=Amount to be accumulated = $86,000 P= Payment to be made = ? i=interest rate…

Q: Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to…

A: Future value (FV) = $39,000 Interest rate = 7% Monthly interest rate (r) = 7%/12 =…

Q: A fund is being formed by monthly deposit of P2,000 at 6% compounded monthly a) Find the amount…

A: future value of annuity=A×1+rmm×n-1rmwhere,A=monthly depositr=rate of interestm=frequency of…

Q: A company plans to make four annual deposits of $6,250 each to a special building fund. The fund's…

A: The time value of money is a principle that is followed in valuing various securities such as bonds,…

Q: Construct an amortization schedule for a $275,000, 6.8% annual rate loan with 30 equal payments.

A: Loan Amount = $ 275000Loan Term = 30 YearsInterest Rate = 6.80%

Q: mortgage instruments expected Note: Use tables, Excel, or a fir

A: 1. The First $3,750 Deposit Is Made  On December 31,2021, And Interest Is Componded Annually -…

Q: Find

A: RATE (7.2%/2) 0.036 PERIOD (45*2) 90 PRESENT VALUE 0 FUTURE VALUE $700,000

Q: Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the…

A: Future Value is $2,200,000 Interest rate r is 4% compounded quarterly Quarterly rate is 4%4=1% Time…

Q: Find the amount of each payment to be made into a sinking fund which earns 8​% compounded quarterly…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: CLASSIFY EACH OF THE FOLLOING AS ONE OF THE FOLLOWING: a) cash b) cash equivalent c) other current…

A:

Q: Consider an amount of 25,000 in a fund today. October 25, 2022. DETERMINE ITS value on the specified…

A: Future Value = Present Value (1 + r)n where r = periodic interest rate = 3.42% n =time period =…

Q: Create a complete sinking fund schedule and calculate the total payments and interest earned needed…

A: Future value=$9000Interest rate=5%Period one year=1Quarterly interest rate=r=5/4=1.25%Quarterly…

Q: Fund A is invested at an effective annual interest rate of 5%. Fund B is invested at an effective…

A: The effective annual interest rate is the rate that a security/fund generates for the investor…

Q: A company plans to make four annual deposits of $2,250 each to a special building fund. The fund's…

A: The objective of the question is to calculate the total amount accumulated in the fund after four…

Characteristics of Bonds