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: 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: 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: 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: 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 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: (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.