3. Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is thesame as the payment period.FU$13,690 to be accumulated in 3 years; quarterly payments of $1025The interest rate needed is approximately%.(Type an integer or decimal rounded to two decimal places as needed.)

Quarterly interest rate is calculated using rate function in excel with number of periods as NPER,…

Answered: Find the interest rate needed for the…

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

15.
For a sum of money interetsed at 4% compunded semi- annually for 5 years. a) nominal rate of interest b) the periods rate of interest c) the compunding factors d) the numerical value of compounding factors
Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year, compounded monthly, for 8 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.
From Ordinary Annuities; Calculate parts A, B & C assuming they are Annuities Due. A.$600 per year for 12 years at 8% B.$300 per year for 6 years at 4% C.$500 per year for 6 years at 0%
Use the sinking fund formula shown to the right to determine the monthly payment needed to accumulate $400,000 with 7% interest are compounded monthly for 29 years. The monthly invested payment is $
Find the ordinary interest on 4,100 at 5 3/4% from November 12,1991 to February 2, 1992 using actual time(Actual and approximate time)
Use the sinking fund formula shown to the right to determine the monthly payment needed to accumulate $560,000 with 9% interest are compounded monthly for 31 years. p=Arn1+rnnt−1 The monthly invested payment is $
Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer to the nearest cent.)$ Amount Needed A Frequency n Rate r Time t $45,000 monthly 9% 20 yr
Consider an asset with upfront cost of $32,639. The cost associated with it during the first year of operation is $3,415. The cost associated with it during the second year of operation is $12,099. With an interest rate of 0.08, what is a levelized cost payment payable at the end of years 1 and 2, which has the same present value as the actual cost stream at the end of period 0. The annuity formula for an interest rate of 0.08 and t payments is given by 0+ 2)-(¹-0)
Find the size of each of 8 payments made at the end of each year into a 9% rate sinking fund which produces 55000 at the end of 8 years. payment size
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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