A fund for replacement of a machinery in a plant must have P 30,000 at the end of 9 years. An equal deposit of P2965 was made on the fund at the end of each 6 months for 4 years only. How much is the rate of the fund invested if it is compounded semi  annually.

Q: Find the amount of each payment to be made into a sinking fund which earns 7% compounded quarterly…

A: Answer Future Value $32,000 Period In Years 2.5 Rate 7% Compund  Quaterly Total Periods…

Q: How much money can be withdrawn at the end of 15 years if: a. $2,000 is deposited at the end of each…

A: The future value of the deposit is the value of the current deposits on a future date based on the…

Q: Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year,…

A:

Q: What is the accumulated value of periodic deposits of $3,500 made into an investment fund at the…

A: The Future Value of Annuity Due refers to the concept which determines the sum total of all the cash…

Q: man deposit P 1,000 at the end of each month for 3 years at nominal rate 12% compounded monthly.…

A: Here we have to find the future value of the monthly deposits using the concept of time value of…

Q: A sum of 45000 invested will provide payments of 500 each at the end of every 2 months for 7 years…

A: Compound interest is interest on interest.  In case of compound interest…

Q: A perpetuity is to pay $21,000 at the end of every six months. How much less money is required to…

A: Solution:- Perpetuity means the payment made forever. Value of perpetuity = Periodic Payments /…

Q: investment, what nominal rate of interest, compounded semi-annually must you earn?

A: Information Provided: Principal = $26,000 Years = 13 Semiannual payments to be received = $1700

Q: In five years, P 20,000 will be bedded to pay for a building renovation. In order to generate this…

A: Here we will have to find the future value of the annuity at the end of the 3rd year and then…

Q: The payment size is $. (Round to the nearest cent.)

A: End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…

Q: Lindsey made equal deposits at the beginning of every 3 months into an RRSP. At the end of 9 years,…

A: Compound = Quarterly = 4Time = t = 9 * 4 = 36Future Value = fv = $50,000Monthly Compound Interest…

Q: Every end of three months, payment of Php 1,300 is made for 5 years, which is deferred for 2 years.…

A:

Q: A man bought an eqpt costing P200k payable in 6 years @ i = 16% compounded quarterly with an…

A: In this we have to calculate present value FACTOR and annual instalment.

Q: 3-43. An annuity fund is to be created to provide $6,000 at the end of each quarter year from ages…

A: The concept of time value of money will be used here. As per the concept of time value of money any…

Q: A company establishes a sinking fund for upgrading office equipment with monthly payments of $2,000…

A: Step 1 The idea of the temporal value of money (TVM) holds that a quantity of money is worth more…

Q: P25,000 was placed in a time deposit at 15.4%, m=12. Find the amount after 5 years.

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: 9th deposit is m

A: Given Information: Amount Deposited each year is P10,000 Time period is 9 years Interest rate is 14…

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

A: End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…

Q: P1M if paid in cash. What is the amount of the building today for 12y the rate of 4.83% compounded…

A: Continuously compounded interest is interest calculated on both the initial principle and all…

Q: An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity…

A: Option C. $7317.16

Q: 13. $500 per month is put into a sinking fund. The interest rate for the fund is 8% compounded…

A: A fund that an entity or individual keeps aside to meet their upcoming obligations is regarded as a…

Q: A business must raise $70,000 in 7 years. What should be the size of the owners' quarterly payment…

A: FV = A × Where,FV = future value A = periodic payments r = interest rate n = time period.

Q: Twenty-five thousand dollars is deposited in a bank trust account that pays 3% interest, compounded…

A: Formula to calculate annual withdrawal is: W = A(F/A, i, n)

Q: A sum of $ 10, 000 is used to buy a deferred perpetuity-due paying $671.69 every six months forever.…

A: The present value of a perpetual annuity is the present worth of a cash flow that will continue till…

Q: K Mr. Deneau accumulated $94,000 in an RRSP. He converted the RRSP into a RRIF and started to…

A: Step 1:Step 2: Step 3: Step 4:

Q: ASE TYPE IT AND NOT HANDWRITTEN Find the amount and the present value of P15,000 payable every…

A: Present value is the future deposits can be calculated by using the present value factor annuity and…

Q: Determine the future amount of money that will be withdrawn when i= 12% per year, compounded…

A: Using excel FV function

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

A: A sinking fund is a type of fund that sets aside a periodic sum in an account to repay a debt in the…

Q: Calculate the future value of end-of-month payments of $500 made for 4 years into an investment fund…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: What is the accumulated value of periodic deposits of $6,000 made into an investment fund at the…

A: Solution:- When an equal amount is deposited each period at beginning of period, it is known as…

Q: Find the amount necessary to fund the given withdrawals  yearly withdrawals of $1150 for 10 years;…

A: Present value of annuity: Annuity payment * Present Annuity Factor of $1 at i% for n years. Where, i…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.