**Pharoah Company Lease Details:**Pharoah Company recently signed a lease for a new office building, lasting 12 years. According to the lease agreement, a security deposit of $12,490 is made, with the deposit returning at the end of the lease. The interest is compounded annually at a rate of 5%.- **Calculation Task:** What amount will the company receive at the end of the lease?- **Instruction:** Round factor values to five decimal places (e.g., 1.25124) and provide the final answer to zero decimal places (e.g., 458,581).- **Answer Box:** - The company will receive: `$22,430`- **Attempts:** 1 of 1 used**Novak Corporation Bond Issue:**Novak Corporation, with a recent bond issue of $20,006,100, is obligated to make annual sinking fund deposits of $619,000. These deposits occur at the end of each year and earn a 10% return.- **Calculation Task:** Will the fund at the end of 15 years be sufficient to retire the bonds?- **Answer Box:** - Future value of an ordinary annuity: `$` - Will funds be sufficient? `[Dropdown: Yes/No]`- **Attempts:** 0 of 1 used**Additional Resources:**- Click links provided to view factor tables for precise calculations.- Options to save progress for later usage.- Submission button to finalize and evaluate calculations for Novak Corporation.

Given information, Annual sinking fund deposit =$619,000 Return (r)=10% No of years(N) =15 years

Answered: Novak Corporation, having recently…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A city has issued bonds to finance a new convention center. The bonds have a total face value of $3,000,000 and are payable in 8 years. A sinking fund has been opened to meet this obligation. If the interest rate on the fund is 6.7% compounded quarterly, what will be the quarterly payments? (Round your final answer to two decimal places.)
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Using a discount rate of 5.5% compounded annually, a pension fund estimates that the present value of its assets and liabilities are $7 million and $4 million, respectively. The duration of the assets is 11 years and the duration of the liabilities is 27 years. (a) Suppose that the interest rate decreases to 5.45%. Estimate the relative changes in the fund's assets and liabilities. Express yours answers as percentages, to the nearest basis point. Relative Change in Assets % Relative Change in Liabilities % (b) Using your rounded answers from (a), estimate the absolute changes in the fund's assets and liabilities. Express your answers in millions of dollars, to the nearest thousand. Absolute Change in Assets $ million Absolute Change in Liabilities s $ million (c) The fund's net worth is defined as the difference between its assets and liabilities. Using your answers from (b), estimate the relative change in the fund's net worth. Express your answer as a percent, to the nearest basis…
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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?
Coronado Corporation, having recently issued a $ 20,153,400, 15-year bond issue, is committed to make annual sinking fund deposits of $ 619,400. The deposits are made on the last day of each year and yield a return of 10%. Click here to view factor tables Will the fund at the end of 15 years be sufficient to retire the bonds? Future value of an ordinary annuity %24
A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to $0. The first payment of $1 is made today. If the fund is used to purchase a ten-year level annuity with the first payment at twenty years from today, what is the amount of the level payment? (Assume an annual effective rate of interest of 4%.) Possible Answers A B D <$16 c≥ $17 but < $18 E ≥ $16 but < $17 ≥ $18 but < $19 ≥ $19
2. Northern Flying Science is preparing to buy an aircraft estimated to cost $600,000 by making equal payments at the end of every three months into a sinking fund for five years. Interest earned by the fund is 8% compounded quarterly. a. What is the size of the quarterly payment made to the sinking fund? b. How much of the maturity value of the fund will be interest? c. What is the accumulated value of the fund after two years? d. How much interest will the fund earn in the 15th payment interval? Using BA II Plus Calculator
Suppose the Omega Graphics Company wishes to set aside an equal, annual, end-of-year amount in a “sinking fund account” earning 8.5 percent per annum over the next six years. The firm wants to have $5 million in the account at the end of six years to retire (pay off ) $5 million in outstanding bonds. How much must be deposited in the account at the end of each year? Hint: Use the math formula.
13. hat Corp. establishing a fund where they pay $200 annually (ie. every year) into the fund. The interest rate thst the fund earns is an annual rate of 6%. What will be the balance of the fund at the end of the 5 years? Round to the nearest dollar. please also explain that formula(s) you used and variable inputs.
pm he company alfa & omega, s.a. You want to accumulate $1,000,000 in a sinking fund at the end of 7 years. What deposit made at the end of each two-month period is necessary if the fund pays 15.3781% compounded semiannually?

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