Bob Smith borrowed $800,000 on Jan 1, 2022. This amount, plus accrued interest at 12% compounded semiannually, is to be repaid in one payment on Jan 1, 2032. To retire this debt, Bob plans to make 5 equal payments annually to a sinking fund starting on Jan 1, 2027. The fund is expected to earn 10%, compounded annually. How large must these payments be to completely retire the debt when due? (Solve using excel).
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- If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of 3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits?Determining Loan Repayments Jerry Rockness needs 40,000 to pay off a loan due on December 31, 2028. His plans included the making of 10 annual deposits beginning on December 31, 2019, in accumulating a fund to pay off the loan. Without making a precise calculation, Jerry made 3 annual deposits of 4,000 each on December 31, 2019, 2020, and 2021, which have been earning interest at 10% compounded annually. Required: What is the equal amount of each of the next 7 deposits for the period December 31, 2022, to December 31, 2028, to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?
- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Santoz borrowed $225,000 on March 1, 2021. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2031. To retire this debt, Santoz plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2026, and for the next 4 years. The fund is expected to earn 10% per annum. Required: How much must be contributed each year by Santoz to provide a fund sufficient to retire the debt on March 1, 2031? Please give your explanation!Your answer is incorrect. David Fowler borrowed $91,860 on March 1, 2023. This amount plus accrued interest at 8% compounded semiannually is to be repaid March 1, 2033. To retire this debt, David plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2028, and for the next 4 years. The fund is expected to earn 7% per annum. Click here to view factor tables. How much must be contributed each year by David Fowler to provide a fund sufficient to retire the debt on March 1, 2033? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,583.) Annual contribution to debt retirement fund $ eTextbook and Media Save for Later Attempts: 2 of 3 used Submit Answer
- The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $100,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030?Ricky Fowler borrowed $70,000 on March 1, 2018. This amount plus accrued interest at 6% compounded semiannually is to be repaid March 1, 2028. To retire this debt, Ricky plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2023, and for the next 4 years. The fund is expected to earn 5% per annum. Instructions How much must be contributed each year by Ricky Fowler to provide a fund sufficient to retire the debt on March 1, 2028?(Retirement of Debt) Ricky Fowler borrowed $70,000 on March 1, 2015. This amount plus accrued interest at 6% compounded semiannually is to be repaid March 1, 2025. To retire this debt, Ricky plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2020, and for the next 4 years. The fund is expected to earn 5% per annum.InstructionsHow much must be contributed each year by Ricky Fowler to provide a fund sufficient to retire the debt on March 1, 2025?
- On January 1, 2021, you deposited $6,100 in a savings account. The account will earn 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 4 years? (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 2. What is the total interest for the 4 years? (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 3. How much interest revenue did the fund earn in 2021 and in 2022?Samuel David wants to make 5 equal annual withdrawals of $8,000 from a fund that will earn interest at 10% compounded annually. Required: How much would Samuel have to invest on: January 1, 2019, if the first withdrawal is made on January 1, 2019?The Zander Corporation wishes to accumulate $2,000,000 for plant expansion. The funds are required on December 31, 2025. Zander intends to make five equal annual deposits at the beginning of the year in a fund that will earn interest at 8% compounded annually. The first deposit was made on January 1, 2021. What is the amount of the required annual deposit? The required annual deposit is (round up to the nearest dollar):