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

A: State lotto is a kind of lottery program that engages people into a game of luck and probability…

Q: Manatee Corporation wants to withdraw $500,000 (including principal) from an investment fund at the…

A: Present Value Given a certain rate of return, the present value (PV) of a future amount of money or…

Q: our HVAC service provider says your home air/heating unit should be replaced in three years; the…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: Ace Development Company is trying to structure a loan with the First National Bank.  Ace would like…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: A company wants to accumulate a sum of money to repay certain debts due in the future. The company…

A: To calculate the future value of a series of cash flows, you can use the future value of an annuity…

Q: You deposit $3,000 at the beginning of every year for 30 years into an investment that earns 8.5%.…

A: Periodic deposit, A = $3,000  Interest rate, r = 8.5%  Period, n = 30 years    The future value of…

Q: Recent sales of some real estate and record profits make it possible for a manufacturer to set aside…

A: Present value of fund (PV) = $ 1,100,000 Interest rate = 6.3% Semi annual rate (r) = 6.3%/2 = 3.15%…

Q: McCarthy Construction is trying to bring the company-funded portion of its employee retirement fund…

A: Formula for calculating present worth:P=A11-1+g1+ini-gwhere,A1 is initial cashflown=no. of…

Q: young married couple wishes to set up a fund that can be used for various home equipment purchases…

A: Value today is the present value of cash flow from the fund based on the time and cash flow from the…

Q: how long will it take for the tithe to double in value if the money is invested at 7.75% APR…

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:…

A: The present value is the value of an asset or liability as of a specific date, adjusted for the time…

Q: Kermit is considering purchasing a new computer system. The purchase price is $132,738. Kermit will…

A: The present worth of an investment or money is computed using the present value concept of the time…

Q: A business sets up a sinking fund so they will have a $66,000.00 to pay for a replacement piece of…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

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 =…

Q: Red Deer College wants to set up a scholarship for students in its business programs such that at…

A: Present value of money is the amount required today for the future needs based on the time value of…

Q: A college wants to provide students with a perpetual scholarship of $10,000 at the end of every 3…

A: A perpetuity is a series of equal payments that go on forever. The amount invested to receive the…

Q: An apartment complex decided to set up a sinking fund to accumulate $50,000 by the end of 4 years to…

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

Q: A local Dunkin' Donuts franchise must buy a new piece of equipment in 6 years that will cost…

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

Q: Windsor Tool Inc. has a $500,000 loan for a new EDM machine to be used in the tool/die production.…

A: Periodic Payment (PMT) = P * r * [(1+r)n /{(1 +r)n -1}] Where, P = Principal borrowed = $500,000 r =…

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

Q: A state lotto has a prize that pays $1,000 each week for 30 years. Find the total value of the…

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…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: An investment company wants to establish a sinking fund to pay off debts of $85 million which come…

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

Q: You need $34877 in 6 years.  If you think you could earn an annual rate of 11.77%, what would be…

A: A monthly deposit refers to an amount that is to be deposited each month for the purpose of savings…

Q: A local retail franchise must buy a new piece of equipment in 6 years that will cost $89,000. The…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: Alexander will take a trip using $5500 of his investment funds that return 8% per year. To pay for…

A: Here,Value of Own Fund (Vo) is $5,500Value of Borrowed Fund (VB) is $10,000Total Funds required for…

Q: A condominium association decided to set up a sinking fund to accumulate $70,000 by the end of 3…

A: Data given: FV=$70,000 N=3 year nper=3year *4 =12 Rate=4.2% (compounded quarterly) Quarterly…

Q: You decided to fund a charity for ten years. The first payment will be made one year from today (at…

A: The concept of money's time worth indicates that any sum of money is worth more currently than what…

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

A: Future value = $70,000Period = 5 years Interest rate = 3%

Q: A scholarship fund is to be set up to provide monthly scholarships of $600. If the first payment is…

A: The concept of present value indicates that the value of a future amount of money is less than its…