A woman expects to have $10,000 in 4 years to buy a pair of earrings. She plans to create a sinking fund by depositing an amount every 6 months. If the fund earns 16% interest compounded semi-annually, find the semi-annual deposit and construct a sinking fund schedule.

Q: A civil engineer planning for her retirement places 11% of her salary each year into a…

A: First year retirement fund deposit (D1) = $180000 * 11% = $19800 Growth rate (g) = 2% n = 13 years r…

Q: A newborn child receives a $4,000 gift toward a college education from her grandparents. How much…

A: The time value of money helps investors to take investment decisions based on present value, future…

Q: Juan invested $10,500 into a fund earning 7.50% compounded monthly. She plans to withdraw $700 from…

A: Working note for calculations. Note for Converting Quarter into years:- Number of year to deplete =…

Q: eeds to accumulate Php460,000.00 for her insurance investment for 2 1/2 years. She set up a sinking…

A: Future value of annuity includes the amount that is being deposited and amount of interest…

Q: Soon-to-be proud parents of a new born baby are planning to establish a scholarship fund for their…

A: To calculate the lump sum amount we need to calculate the present value of all the future cash flows…

Q: today

A: Formula to calculate FV of annuity: If payment done at the beginning of the year: FV =…

Q: thday, you will make the first monthly contribution of $200 into the fund that will earn 6%/year…

A: In this we need to calculate the monthly future value factor and and find out retirement fund and…

Q: Millet wants to provide a ₱200,000 graduation gift for her daughter Mae who is now 16 years old. She…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six…

A: Present value is the current date value of the future expected cash flows of the annuity fund.…

Q: May deposits PhP 20,000 into a fund at the beginning of each year for 10 years. At the end of 15…

A: This is a classic case of an annuity due, annuity perpetuity, annuity deferrals. First, we will…

Q: Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine…

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

Q: Brenda expects to receives Sh.50,000 at the end of each year for 5 years in a fund earning 10% per…

A: The present value of an annuity is a series of payments or receipts lasting for some specific…

Q: Jane decides to make 5 end-of-year deposits of $10,000 into a fund starting one year from now. 6)…

A: Calculate the amount at the end of 5 years as below: Resultant Table: Hence, amount at the end of…

Q: Tiffany has accumulated $60,000 in a mutual fund. If she continues to deposit $300 at the beginning…

A: Future value of a fund is the accumulated amount in the fund over a period of time with deposits and…

Q: Tara wishes to accumulate $29,000 in 5 years. Use the appropriate formula to find the sinking fund…

A: Given information, Target amount of total accumulation (A) = $29,000Time (t) = 5 yearsPayment and…

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: To benefit the ISU College of Business, Bill Vickers would like to establish a “perpetual”…

A: Future Value (FV)= $210,000 per year Time period (n)= 13 years  Annual return (i)= 4.1 percent…

Q: Brian wants to invest the same amount into a sinking fund at the end of every 3 months so that he…

A: We will use the below formula to calculate the amount of each deposit   Quarterly deposit =…

Q: Brenda Young desires to have $16,500 eight years from now for her daughter’s college fund. If she…

A: Data given: FV= $16500 n=8 years r=12% (compounded annually) Required: what amount should she…

Q: Jeff wishes to accumulate $7,250 in 7 years. Use the appropriate formula to find the sinking fund…

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

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: Angela invested $10, 500 into a fund earning 7.75% compounded monthly. She plans to withdraw $850…

A: Dear student, kindly check the answer in the explanation box below.Explanation:Part 1: Answer:To…

Q: Jaime Bickers invests $4000 at the end of each semiannual period for 8 years. His financial advisor…

A: Calculate the future value as follows:

Q: A couple is saving for a downpayment on a mortage. The need $50,000 at the end of 4 years and so…

A: Sinking fund schedule refers to the statement showing the annual payment amount and the interest…

Q: How much does your client need to contribute to a fund each month for the next 25 years (first…

A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…

Q: An engineer planning for her retirement will deposit 15% of her salary each year into a stock fund.…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Mia will retire 10 years from now and wants to establish a fund today that will pay $30,000 cash at…

A: We will first calculate the value of the annuity at January 1, year 11 and then discount it for a…

Q: A trust fund for a 8 - year - old grandchild is being set up by her grandfather. The objective of…

A: Annuity can be defined as the series of equal payments into a fund account. In this account interest…

Q: You donate $400,000 to provide annual scholarships in perpetuity. The money is deposited into an…

A: in this we have to find out effective annual interest rate and from that we will get annual…

Q: Revere College predicts that in 6 years it will take $150,000 to attend the college for four years.…

A: Given information: Future value is $150,000 APR is 7% Number of years is 6

Q: Katherine set up a fund that would pay his family $3,000 at the beginning of every month, in…

A: The given details are:Perpetual annuity: $3,000 at the beginning of every month.APR: 3% compounded…

Q: Tara wishes to accumulate $25,000 in 3 years. use the appropriate formula to find the sinking fund…

A: Sinking Fund  A sinking fund is a specific kind of fund that is established with the intention of…

Q: A person wants to accumulate RM 20,000 for his marriage fund at the end of 8 years. If he deposits…

A: The future value is the future worth of the amount that will be paid or received at future.

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…

Q: amount Sunrise Industries must invest each year

A: An annuity is an equal amount that is either deposited or withdrawn at equal interval of time over a…

Q: The Pithybottoms want to make a donation to set up a scholarship trust fund at Hinose College. The…

A: When the cash flow are regular and for an indefinite time period, the cash flow is knows as…

Q: Kristen invested the profit of her business in an investment fund that was earning 3.25% compounded…

A: The future value of amount includes the amount being deposited and amount of compounding interest…

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: Ordinary Annuity According to given information woman deposits the amount at the end of each month…

Q: determine the quarterly installment that should be deposited into the fund.

A: Introduction: Sinking fund can be defined as a type of fund which is created for repaying the debt.…