o raise funds for improvements by issuing 51⁄2 % bonds. There is P 20,000 available per year for interest payments and retirement at the bonds at 110% and interest rate is 3%.What should be the amount of the bond issue if all the

Q: 12) What is the annualized cost of the debt for a sinking fund that has semi-annual deposits and it…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: Maju City issued a RM700,500.00 face vale bond with four years until maturity. It will make…

A: Periodic deposit for sinking fund can be calculated by annuity from future value formula in excel…

Q: 4. A certain principal P was invested in a fund at a rate of 14% compounded monthly for the first…

A: Compound interest is the method in which the amount after a period is added back to the investment…

Q: How much is in the fund at the end of 12 years, if it accumulated at 5% for the first 8 years, and…

A: Balance in the fund at the end of any period is the amount of money which includes the deposits…

Q: The city is issuing bonds for a building project . You obtain 7200 bond that pays 7% interest…

A: Interest Earned = Amount * rate of Interest * Time                          = 7200 * 7% * 7…

Q: A 15-year, $500,000 loan will be repaid by the sinking fund method. Interest only must be paid at…

A: A sinking fund increases a company's creditworthiness, it allows a small corporation to offer a…

Q: On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,000 by September 1, year 5.…

A: Amount to be accumulated = P1000000 Number of deposits (n) = 4 r = 10% Let the annual deposit = A

Q: he government borrowed a certain amount of money to build a new bridge. It pays interest at a rate…

A: The given details related to government borrowing are:Interest rate: 12%Annual repayments:…

Q: What is the amount of the required annual deposit?

A: Here we have been give the following information              Funds required at the end of January…

Q: he company has made an investment in government bonds. The bonds will generate an interest income of…

A: The Present Value of Annuity (PVAF) is the cash value of all future annuity payments discounted at a…

Q: Luxury Yacht company is preparing to buy a new yacht estimated to cost $750000 by making equal…

A: We have to find the annuity whose FV will result into a target value. In the target accumulated…

Q: "To pay off $66000000 worth of new construction bonds when they come due in 31 years, a water…

A: Future value required (FV) = $ 66000000 Interest rate = 6.7% Quarterly interest rate (r) = 6.7%/4 =…

Q: A city has financed a local project with a $600,000 bond issue with a coupon rate of 6% compounded…

A: In this question, we will find out the Periodic expense of debt . As it is also called cost of debts…

Q: Pharoah Company issued $1,100,000, 12-year bonds and agreed to make annual sinking fund deposits of…

A: A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company…

Q: A trust fund amounting to ₱6700000 earns 7.4% annual interest. If ₱150,000 is to be withdrawn at the…

A: Amount of trust fund is P6,700,000 Interest rate is 7.4% Time period is 5 years Amount of withdrawl…

Q: The company has made an investment in government bonds. The bonds will generate an interest income…

A:

Q: A loan of $50,000 is to be amortized in 15 level annual payments. The interest rate for the first 5…

A: Annual instalment of loan is calculated based on present value of annuity formula. Effective…

Q: 4. A sinking fund amounting to $15,000 is to be created by making payments at the beginning of every…

A: Sinking fund (SF) is a type of account which is created to accumulate the required amount after a…

Q: In order to have $85,000 four years from now for equipment replacement, a construction company plans…

A: Present value is the present worth of any sum of money to be received in the future at a specified…

Q: How much would a business have to invest in a fund to receive $18,000 at the end of every month for…

A: An annuity is a type of security that pays a periodic amount over a specific period of time.  To…

Q: Marigold Corp. deposits $12000 in a fund at the end of each year for 5 years. The fund pays interest…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: 1. Alice has a Php660,000.00 debt that is need to be repaid at the end of 5 years. The debtor…

A: The sinking fund is a funding account that is used to put money aside to make the debt payment. The…

Q: How much must they deposit at the end of every six months into the sinking fund in order to save the…

A: We will use the PMT function in excel to find out the regular payments every 6 months with given…

Q: Culver Corporation, having recently issued a $20,062,200, 15-year bond issue, is committed to make…

A: Annual payment (C) = $620,000 Rate of return (r) = 0.10 Period (n) = 15 Years Future value of…

Q: A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 10…

A: Excel formulas which are used for calculations:-

Q: The company has made an investment in government bonds. The bonds will generate an interest income…

A: Government bonds are those bonds which are issued by the governments of a country. It can be issued…

Q: Sanders Company is planning to finance an expansion of its operations by borrowing $48,600. City…

A: a. Amount of Interest Sanders will pay in year 1 Under option 1 and 2 Under option 1   Principal…

Q: A corporation creates a sinking fund in order to have $440,000 to replace some machinery in 8 years.…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: A municipality needs funding for upcoming infrastructure (water and sewer line) repair or…

A: A bond is bought and held for a period and is to be sold prior to maturity. We need to determine the…

Q: 124 0.4950495 0.4926108 0.4901961 0.4854369 0.4807692 0221 0.3267547 0.3235304 0.3203485 0.3141098…

A: We have to find out future value FACTOR of annuity and find out quarterly payment.

Q: A foundation took out a loan of € 150000 with an interest of 3.1% per year. The board foundation…

A: Loans are paid by the equivalent periodic payments each year and these payments carry the payment of…

Q: If ₱17,000 is deposited at the end of each year for 16 years in a bank that give 7% interest per…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: On January 1 of the current year, Southwest Inc. adopts a plan to accumulate funds for environmental…

A: Future value required=$2000000Interest rate=10%Number of deposits=4

Q: A state agency issues $575 million in bonds to repair bridges in the state. The state establishes a…

A: The quarterly deposit in sinking fund forms the annuity. We can compute the future value of annuity…

Q: 5. A debt of $250,000 is to be repaid after 5 years. If the interest is charged at 5% compounded…

A: Debt repayment involves the process of returning borrowed money, typically with interest, to the…

Q: Strikler inc. Has issued 10 million 10 year bond. The bond requires strikler to establish a sinking…

A: Sinking fund : A sinking fund is a fund containing money set aside or saved to pay off a debt or…

Q: Sarasota Corporation, having recently issued a $20,134,100, 15-year bond issue, is committed to make…

A: Sinking Fund refers to amount which is set aside from profits to meet future known liability. It…

Q: A company wishes to have P 350,000 in 9 years from now for building renovation. The company…

A: Amount needed (F) = P 350000 n = 9 years Deposit amount (D) = P 30000 Let r = Interest rate

Q: The city isrequired to make regular payments every 3 months into a sinking fund paying 5.4%…

A: A)The interest rate is 5.4% compounded quarterly.There would be 40 quarters in 10 years.The cost of…

Q: Urgently need. An engineer wishes to set up a special fund by making uniform semiannual…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: How much can be paid in scholarship at the beginning of each month if $200000 is deposited in a…

A: The amount to be paid monthly can be calculated from the function of present value of annuity due

Q: A corporation creates a sinking fund in order to have $590000 to replace some machinery in 9 years.…

A: Future value refers to the value at the end of the tenure of future cash flows at the regular…

Characteristics of Bonds