A fund of 25000 is to be accumulated by means of deposits of 1000 at the beginning of every year as long as necessary. If the fund earns an effective rate of interest of 8%, find how many regular deposits will be necessary and the size of a final deposit to be made on the last regular deposit.

Q: 5. A fund of P3,000,000 needs to be available after 10 years. How much deposit should be made every…

A: Future value required (FV) = P3,000,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50%…

Q: How much can be paid in scholarships at the end of each half-year if ​$210,000 is deposited in a…

A: Interest can provide a range of benefits for investors, particularly those looking for a steady…

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

A:

Q: What is the amount of the payments that Tom Brokaw must make at the end of each of 8 years to…

A: Amount required = $70,000 Interest Rate(r) = 8% Years(n) = 8 Let Annual Payments = P

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: A trust fund amounting to ₱6700000 earns 7.4% annual interest. If ₱150,000 is to be withdrawn at the…

A: Amount of trust fund is P6,700,000 Interest rate is 7.4% Time period is 5 years Amount of withdrawl…

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: wo years from now. My Orly needs P32,000 to liquidate a certain debt. If money is worth 5%…

A: Time Period = 2 years * 4 = 8 quarters Interest Rate = 5%/4 = 1.25% per quarter Future Value…

Q: P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the…

A: Semi annual deposit = P = P240,000 Interest rate = 11% Semi annual interest rate (r) = 11%/2 = 5.50%…

Q: Find the amount necessary to fund the given withdrawals. Quarterly withdrawals of $950 for 5 years;…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: John Goodheart wishes to provide for 6 annual withdrawals of $3,000 each beginning January 1, 2029.…

A: Value of an Annuity-The value of an annuity refers to the present value or future value of an…

Q: Calculate the present value of an annuity stream of five annual cash flows of RM1,200, with the…

A: In the given question we need to compute the present value of annuity from following details :…

Q: The annual effective interest rate is 6%. Determine X.

A: To determine the value of X, we need to calculate the future value of the monthly deposits made by…

Q: Calculate the accumulated amount at the end of year 16 of the following regular series of payments…

A: Future value is an estimation of future cash values ​​that may be received at a future date,…

Q: Your company has decided to set up a fund for its employees with an initial payment of Rs 27,500…

A: a.Calculate the size of the fund as follows:

Q: Using the sinking fund formula or a financial calculator, complete the following: (Do answer to the…

A: A sinking fund refers to an amount that is kept aside for paying off the debt obligations at the…

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: An investor needs $22,000 in 11 years. (a) What amount should be deposited in a fund at the end of…

A: This pertains to the concept of time value of money. Money deposited or invested today grows in…

Q: Set XYZ as the last three digits of your student number. Construct an amortization schedule for a…

A: Amortization Schedule: It is a table containing periodic loan payments, interest paid, principal…

Q: A fund is to be created which pays out a scholarship of £7,000 every year in perpetuity. The first…

A: Perpetuity are funds that are paid over the whole life period of annuities. Value of perpetuity is…

Q: Solve by using the sinking fund or amortization formula. (Round your answer to the nearest cent.)…

A: The concept of time value of money states that the current worth of money is more than its value in…

Q: For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed…

A: Step 1 The worth of a series of recurrent payments at a specific future date, assuming a specific…

Q: The PUR Foundation deposits $2,500,000 today in a fund earning 6% APR compounded monthly.  What will…

A: Deposit Amount (PV) is $2,500,000 Interest Rate (r) is 6% Time Period (n) is 10 years  Compounding…

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…

Q: Your RRSP savings of $50,000 are converted to a RRIF at 5.25% compounded monthly that pays $5,400 at…

A: Present value of amount = $50,000Interest rate = 0.0525Monthly payment (PMT) = $5,400

Q: Find the present worth of this cost.

A: An endowment fund is the fund set aside and invested, the earnings of which will be utilized for the…

Q: An company needs to make the following annuity payments into a  pension fund: £1100 paid at the…

A: The FV of an investment refers to the combined worth of the cash flows of the investment at a…

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.