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

Bright Inc. will be receiving $5,500 at the end of every month for the next 3 years. If these payments were directly invested into a fund earning 6.00% compounded semi- annually, what would be the future value of the fund at the end of 3 years? $0.00 Round to the nearest cent
Use the sinking fund formula shown to the right to determine the semiannual payments with 8% interest are compounded semiannually for 4 years to accumulate $24,000.
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.)
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.)
Annual deposits of $1000 are made at the end of each year for 25 years in a fund that pays 3% in the first 11 years and 4% in the remaining years. Find the AV of these deposits at the end of 25 years. Possible Answers A 36,002 B 37,391 C 38,105 D 39,420 E 40,471
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
Bright Inc. will be receiving $5,500 at the end of every month for the next 2 years. If these payments were directly invested into a fund earning 6.00% compounded semi-annually, what would be the future value of the fund at the end of 2 years? Round to the nearest cent
Bright Inc. will be receiving $5,500 at the end of every month for the next 2 years. If these payments were directly invested into a fund earning 6.00% compounded semi-annually, what would be the future value of the fund at the end of 2 years? Round to the nearest cent
You are given: i. Fund X accumulates at an interest rate of 8% compounded quarterly. ii. Fund Y accumulates at an interest rate of 6% compounded semiannually. iii. At the end of 10 years, the total amount in the two funds combined to $1000. iv. At the end of 5 years, the amount in Fund X is twice that in Fund Y. Calculate the total amount in the two funds at the end of 2 years.
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?
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