Recent sales of some real estate and record profits make it possible for a manufacturer to set aside $900,000 in a fund to be used for modernization and remodeling. How much can be withdrawn from this fund at the beginning of each half-year for the next 6 years if the fund earns 7.1%, compounded semiannually? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. O ordinary annuity O annuity due (b) Solve the problem. (Round your answer to the nearest cent.)

Q: Al Darby wants to withdraw $20200 (including principal) from an investment fund at the end of each…

A: Annuity refers to a series of cash flow that are usually constant and fixed in nature and occur on a…

Q: Suppose that you won $1,500,000 in the Illinois state lottery. It will be paid to you over 20 years…

A: An annuity is end of year equal payments made for a fixed period of time at a specified interest…

Q: Sebastopol Movie Theater will need $180,000 in 3 years to replace the seats. What deposit should be…

A: Future Value  $          1,80,000.00 Time Period 3 Interest Rate 0.80%

Q: Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the…

A: FV = $1,000,000 r = 5.8% Number of compounding per year (m) = 2 Period (t) = 30 Years

Q: $11,000 is to be paid at the end of each year in a legal settlement. The payments end after 9 years.…

A:

Q: purchased a 10-year $200,000 variable annuity that based its rate of return the performance of a…

A: Th amount to be received from the annuity each month depends on interest rate earned  by the fund…

Q: £1443 paid at the end of each year for the first 4 years followed by £1441 paid at the end of each…

A: Annual payment for first 4 years = £1443 Annual payment for 15 years (including first 4 years) = p =…

Q: A perpetuity is to pay $21,000 at the end of every six months. How much less money is required to…

A: Solution:- Perpetuity means the payment made forever. Value of perpetuity = Periodic Payments /…

Q: corporation hopes to withdraw $9,000 at the end of each year for six years from a fund that earns 7%…

A: Variables in the question:Withdrawal each year (PMT)=$9000 n=6 yearsRate=7%

Q: For given information answer the Questions no (3) and (4) for a 10,000 per month annuity that has a…

A: FV=P1+in-1iFV=Future valueP=Periodic paymenti=rate of returnn=number of period

Q: A perpetuity will pay $3000 per year starting seven years after the perpetuity is purchased what is…

A: Given: Amount = $3,000 Interest rate = 8% years = 7

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4 years. If an…

A: Given: Payment = $50,000 Years = 4(1/2) or 4.5 years Interest rate = 6.32%

Q: purchased for $185,000 pays $5,000 at the end of every quarter. How long will the payments continue…

A: Present value of annuity is amount of equivalent value today that will equivalent to future value of…

Q: Find

A: RATE (7.2%/2) 0.036 PERIOD (45*2) 90 PRESENT VALUE 0 FUTURE VALUE $700,000

Q: Solve by using the sinking fund or amortization formula. (Round your answer to the nearest cent.)…

A: The question asked to compute the sing king fund payment.   Future value: Future value refers to the…

Q: period. If interest is 8% compounded semiannually, what is the required semiannual to be made?

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: epay a loan over five years with the following stream of cash payments: $1,000; $1,100; $1,250;…

A: Annuity is one uniform constant payments to be received or to be paid over the period of payments,

Q: amount Sunrise Industries must invest each year

A: An annuity is an equal amount that is either deposited or withdrawn at equal interval of time over a…

Q: What is the fair value of the lottery payments according to the Financial Accounting Standards Board…

A: According to the financial accounting standards board (FASB), The fair and present value of the…

Q: A sum of $ 10, 000 is used to buy a deferred perpetuity-due paying $671.69 every six months forever.…

A: The present value of a perpetual annuity is the present worth of a cash flow that will continue till…

Q: Viola wants to withdraw $8,000 each year from July 1, 2025 through July 1, 2029. The investment fund…

A: 1) Focal year is year 2024 Withdrawal each year (W) = $8000  Number of withdrawals (n) = 5 r = 5%…

Q: Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the…

A: Future value can be computed by compounding each of the annual payment.  Future value can be…

Q: Dhofar Insurance Company has made an investment in another company that will guarantee it a cash…

A: Given information: Cash flows: OMR 37,250 Discount rate : 15% Time period : 5 years

Q: please provide ball plus solution function

A: An annuity is an agreement that pays a fixed periodic amount for a predetermined time. It is largely…

Q: A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to…

A: Future value of annuity is amount deposited by the annuities and also amount of interest being…

Q: What is the fair value of the grant payments according to the Financial Accounting Standards Board…

A: Fair value means the price which we have to pay for purchasing a particular item in the normal…

Q: For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed…

A: Future value is the estimated value of current assets that is discounted at a predetermined rate of…

Q: Net Present Value Method and Internal Rate of Return Method for a service company Keystone…

A: Given: Initial Cost = -$111640 Net cash flow = $20000 Number of years = 7

Q: The National Research Council is considering the establishment of a perpetuity to fund faculty…

A: Perpetuity refers equalized amount of payments received or paid for a infinite period of time. Value…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.