A local Dunkin’ Donuts franchise must buy a new piece of equipment in 4 years that will cost $81,000. The company is setting up a sinking fund to finance the purchase. What will the quarterly deposit be if the fund earns 16% interest?

Q: What is the annually compounded interest rate for the fund during the final 30 years?

A:

Q: A state lotto has a prize that pays $600 each week for 30 years. Find the total value of the prize:…

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A: Formula: FV= PV(1+r/n)nt

Q: A state lotto has a prize that pays $700 each week for 25 years. Find the total value of the prize:…

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Q: Sam​ Hinds, a local​ dentist, is going to remodel the dental reception area and add two new…

A: PV of annuity = P*{1-{1/[(1+r)^n]}/r} Where, PV of annuity = cost of new equipment i.e. $22,000 r =…

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Q: re to made to the fund

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A: Solution:- When an equal amount is deposited each period, it is called ordinary annuity. We know,…

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A: Given,  The cost of equipment is $79,000 Interest rate is 12% Term is 6 years

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Q: A state lotto has a prize that pays $600 each week for 15 years. Find the total value of the prize:…

A: Total value of the prize = Price each week * Number of weeks * Number of years

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A: Annuity is a series of periodic equal payments at equal interval. With periodic interest rate (r),…

Q: A state lotto has a prize that pays $1,700 each week for 15 years. Find the total value of the…

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A: Formulas: Future value = amount*((1+rate)^years - 1) / Rate

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: deposit P5,000 at the beginning of every year into an investment which earns 16% interest per year…

A: Solved using Financial Calculator  (i) Amount at the end of 4th Year SET BGN Mode in Calculator.…

Q: A business must raise $70,000 in 5 years. What should be the size of the owners' quarterly payment…

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