KFind the amount of each payment into a sinking fund if $14,000 must be accumulated Payments are made at the end of each quarter for 3 years, with interest of 6% compounded quarterly Round to the nearestcentClick here to view part 1 of the Sinking Fund table.Click here to view part 2 of the Sinking Fund table.OA. $829.92OB. $4,597 32OC. $1,180.06OD. $1,073.52

Future Value $ 14,000Interest rate p.a.6.00%Number of Year3

Answered: Find the amount of each payment into a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Payments of $1,542 are made out of a fund of $20,000 at the end of every month. If interest is 4% compounded monthly, what is the size of the final The size of the final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
An investment of 1000 is to be used to make payments of 100 at the end of every year for as long as possible. If the fund earns an annual effective rate of interest of 6%, find how many regular payments can be made. Also, find the amount of the smaller payment to be paid on the date of the last regular payment to be paid one year after the last regular payment
Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $29,488 to be accumulated in 5 years; quarterly payments of $1275. %- The interest rate needed is approximately (Type an integer or decimal rounded to two decimal places as needed.)
8. Deposits of 1000 are placed into a fund at the end of each year for the next 25 years for the subsequent purchase of a perpetuity. Five years after the last deposit, annual payments commence and continue forever. If i = .09 then find the amount of each payment.
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trust fund for a childs education is being set up by a single payment so that at the end of 15 years there will be shs 24,000,000. If the fund earns interest at the rate of 7% compounded semi-annually how much money should be paid into the fund initially?
Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the given conditions. (Round your answer to the nearest cent.) FV = $1,500,000, r = 4.7%, compounded semiannually for 25 years
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Find the future value of an annuity of $1500 paid at the end of each year for 15 years, if interest is earned at a rate of 5%, compounded annually. (Round your answer to the nearest cent.)
in order to have a fund of 1,000,000 at the end of 12 years, equal deposits every six months must be made. Find the semi annual payment of interest is at 6% compounded annually?
Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. $49,000; money earns 4% compounded semiannually for 13.5 years
Use the accompanying sinking fund formula to determine the payment needed to reach the accumulated amount. Semiannual payments with 7% interest are compounded semiannually for 7 years to accumulate $18,000

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Find the amount of each payment into a sinking fund if $14,000 must be accumulated. Payments are made at the end of each quarter for 3 years, with interest of 6% compounded quarterly Round to the nearest cent