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: 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: A yearly payment of P 100, 000.00 every end of each year starting at the end of 5 years for 10…

A: Cash flows refer to the amount of cash that goes and comes into the business from three types of…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: an electrical engineer desires to set up fund by making uniform monthly end of period deposits for a…

A: first calculate the value at the end of the decade FV = 0, N = 3, PMT = 250,000, rate = (1+6%/12)12…

Q: Assume that you want to have $ 4100 saved in a sinking fund in 1 year. The account pays 3%…

A: Future value (FV) = $ 4100 Annual interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25%…

Q: What semiannual sinking fund payment would be required to yield $47,000 seven years from now? The…

A: Sinking fund (SF) is an account in which a fixed amount is deposited periodically and interest is…

Q: Annual investments of $1200 are to be made at a savings and loan institution for 10 years beginning…

A: Annual Savings = 1200 End of year savings Nominal Rate = 5% Quarterly Compounding N = 10 years…

Q: A company makes fixed annual payments to a sinking fund to replace equipment in five years’ time.…

A: Future Value of Money Required = 200,000 Time Period = 5 years Interest  Rate = 10%   Future Value…

Q: What monthly payment into a sinking fund at 8% compounded semi –annually will be needed to raise…

A: Sinking Fund is a fund that is kept aside or borrowed to pay off a debt or a loan. It helps the…

Q: petuities 4. What amount is required to fund a perpetuity that begins annual payments of P50,100…

A: Perpetuity is payment forever and there are annual payments forever period depending on time and…

Q: Assume you want to have $4050 saved in a sinking fund in 1 year. The account pays 3.5% compounded…

A: The amount of money invested over a period of time with the assumption of investment growth at a…

Q: If a donation of $100,000 is expected to pay out scholarships of $10,000 every year and the funds…

A: Here, to calculate time period we have to use the compound interest formula .   A = P 1+r100n…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Ten thousand pesos is deposited annually for 10 years with an annual interest rate of 3.2%, how much…

A: Annual deposit (P) = P10,000 Interest rate (r) = 3.2% Number of annual deposits (n) = 10

Q: Assume that you want to have $ 2900 saved in a sinking fund in 1 year. The account pays 5%…

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

Q: An annuity with a cash value of $9,600 pays $2,190 at the beginning of every six months. The…

A: Annuities are equal and fixed regular payments based on the time of cash flow and the interest rate…

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: To provide for the automation of a production process in six years, Invista is starting a sinking…

A: Amount required = $800,000Interest rate = 6.4% compounded monthlyNumber of years = 6To find:…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT…

A: Given Values:Future worth is $50000Interest rate is 7% per annumMonthly payment is 5 yearsFormula…

Q: A health clinic invests $578,467 in an endowment fund to support its community health program. They…

A: The future value is the formula used to evaluate the future value of today’s $1. It is calculated by…

Q: In order to have ₱1 million in a fund at the end of 15 years, how much must be deposited in the fund…

A: Future value (FV) is ₱1,000,000. The maturity period is 15 years. The interest rate is 10.5%. The…

Q: What monthly payment into a sinking fund at 8% compounded semi –annually will be needed to raise…

A: Sinking Fund is a fund that is kept aside or borrowed to pay off a debt or a loan. It helps the…

Q: fund of P 30,000 is invested at 14 % compounded quarterly. A withdrawal of 000 is agreed upon. How…

A: The fixed amount of annuities can be withdrawn from the accumulated and that carry the interest and…

Q: Find the value of an investment after four years for a $7000 ordinary annuity at 10% compounded…

A: We need to use the formula below to compute the FV of ordinary annuity. In the formula above, PMT =…

Q: the periodic paymer necessary tő accumu the given amount in an annuity account. (Assume…

A: We use PMT function in excel to calculate monthly payments

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

A: A fund that is created to repay a debt or replacement of an asset by putting an equal sum of amount…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: Here, Particulars Values Accumulated amount in an annuity account (FV)  $30,000.00 Present…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

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: Fint the periodc payments PNT necessary to accumutate the given amount in an annity account. (Assume…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: (a) How many payments will be paid? (b) What is the size of the final annuity payment?

A: Given in the question: Annuity Cash Value  $12,000 Payment at the beginning of every six…

Q: (c) A sum of 10,000 RO is required in 5 yoars from now. An annual sinking fund is to be sot up that…

A: A sinking fund is created by setting the required amount periodically. The sinking fund is set up to…

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.