Tara wishes to accumulate $27,000 in 3 years. Use the appropriate formula to find the sinking fund payment (in $) she would need to make at the end of each six months, at 8% interest compounded semiannually. (Round your answer to the nearest cent.) $

Tara wishes to accumulate $27,000 in 3 years. Use the appropriate formula to find the sinking fund payment (in $) she would need to make at the end of each six months, at 8% interest compounded semiannually. (Round your answer to the nearest cent.) $

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

See similar textbooks

Related questions

Q: Current Attempt in Progress Sharon is 40 years old today and she wishes to accumulate $2,360,000 by…

A: It is given that, Sharon want to accumualte $ 2,360,000 by her 65th Birthday. Therefore, Future…

Q: eeds to accumulate Php460,000.00 for her insurance investment for 2 1/2 years. She set up a sinking…

A: Future value of annuity includes the amount that is being deposited and amount of interest…

Q: An insurance settlement of $1.5 million must replace Trixie Eden's income for the next 35 years.…

A: Present value (PV) = $1,500,000 Interest rate = 7.5% Monthly interest rate (r) = 7.5%/12 = 0.625%…

Q: today

A: Formula to calculate FV of annuity: If payment done at the beginning of the year: FV =…

Q: Julia Monroe wants to create a fund today that will enable her to withdraw $26,400 per year for 8…

A: Formula:Present value (PV) = Payment amount (PMT) * [1 - (1 + Interest rate)^(-Number of periods)] /…

Q: To offer scholarships to children of employees, a company invests $15,000 at the end of every three…

A: Interest The percentage of the principal amount which is received by the investor or paid by the…

Q: Jane decides to make 5 end-of-year deposits of $10,000 into a fund starting one year from now. 6)…

A: Calculate the amount at the end of 5 years as below: Resultant Table: Hence, amount at the end of…

Q: Patricia set up a savings account for a trip that will cost $7,200 some time in the future. He will…

A: The time value of money concept states that the value of the amount of money in the future will be…

Q: Newman Madison needs $238,900 in 10 years. Click here to view factor tables How much must he invest…

A: This is the case of future value of annuity where payment is due at specific period and get desired…

Q: Kelly Malone plans to have $53 withheld from her monthly paycheck and deposited in a savings account…

Q: Tiffany has accumulated $60,000 in a mutual fund. If she continues to deposit $300 at the beginning…

A: Future value of a fund is the accumulated amount in the fund over a period of time with deposits and…

Q: Tara wishes to accumulate $29,000 in 5 years. Use the appropriate formula to find the sinking fund…

A: Given information, Target amount of total accumulation (A) = $29,000Time (t) = 5 yearsPayment and…

Q: Brian wants to invest the same amount into a sinking fund at the end of every 3 months so that he…

A: We will use the below formula to calculate the amount of each deposit Quarterly deposit =…

Q: Needs Complete solution plz.

A: The objective of this question is to find out the annual rate of return that Rachel needs to earn on…

Q: Jeff wishes to accumulate $7,250 in 7 years. Use the appropriate formula to find the sinking fund…

A: A fund that is created to repay a debt or replacement of an asset by putting an equal sum of amount…

Q: An engineer who is saving for her retirement plans to deposit $500 every semiannually, starting…

A: Semi Annual Deposit = 500 End of period deposits Nominal Rate = 12℅ Quarterly Compounding N = 25…

Q: A couple is saving for a downpayment on a mortage. The need $50,000 at the end of 4 years and so…

A: Sinking fund schedule refers to the statement showing the annual payment amount and the interest…

Q: Julia Monroe wants to create a fund today that will enable her to withdraw $27,700 per year for 8…

A: The amount that is required to be invested today can be found by discounting the amount of…

Q: Katherine set up a fund that would pay his family $3,000 at the beginning of every month, in…

A: The given details are:Perpetual annuity: $3,000 at the beginning of every month.APR: 3% compounded…

Q: Puan Aminah wishes to have RM 250,000 for her children education fund of her in 15 years with…

A: Compound = Quarterly = 4Future Value = fv = RM 250,000Time = t = 15 * 4 = 60Interest Rate = r = 8 /…

Q: Tara wishes to accumulate $25,000 in 3 years. use the appropriate formula to find the sinking fund…

A: Sinking Fund A sinking fund is a specific kind of fund that is established with the intention of…

Q: Mr. Deneau accumulated $95,000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw…

A: Present value of an annuity:The present value of a cash flow stream of an annuity is calculated by…

Q: Kristen invested the profit of her business in an investment fund that was earning 3.25% compounded…

A: The future value of amount includes the amount being deposited and amount of compounding interest…

Q: what amount should she deposit now?

A: Present Value is the value of a cash flow at the current time. The value of money multiplies with…

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: Ordinary Annuity According to given information woman deposits the amount at the end of each month…

Q: Samuel David wants to make 5 equal annual withdrawals of $8,000 from a fund that will earn interest…

Q: Mr. Deneau accumulated $97,000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw…

A: Present value of an annuity: The present value of a cash flow stream of an annuity is calculated by…

Q: A family wants to have a $130,000 college fund for their children at the end of 17 years. What…

A: Information Provided: Future value amount = $130,000 Interest rate = 7.10% compounded quarterly…

Q: Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual compound…

A: The value of equal payments or a single payment at any specific date which falls in future is called…

Q: Dylan contributed $700 at the end of every 3 months, for 4 years, into a Registered Retirement…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: A family want to have a $213,000.00 higher education fund for their children at the end of 19 years.…

A: An annuity refers to a payment series that is provided in exchange for a lump sum payment. It is…

Q: ane Bauer has won the lottery and has the following four options for receiving her winnings:…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Brittany contributed $3,750 at the end of every 3 months, for 5 years, into a Register. Retirement…

A: Solution: An amount deposited at end of every period is known as ordinary annuity. The formula for…

Q: On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent…

A: Compound interest:In compound interest syatem interest is computed may be in months, quarterly, half…

Q: 2. Trixy needs to accumulate 780,000.00 for her insurance investment for 5 years. She set up a…

A: A sinking fund is a type of fund that is created with the sole intention of debt repayment. A…

Q: A widow currently has a $84,000 investment that yields 6 percent annually. Can she withdraw $21,000…

A: The present Value is the present worth of the amount that will be paid/received in the future.

Q: You deposit $1,000 in a fund at the end of each year for a 10- year period. The fund pays 5%…

A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…

Question

Tara wishes to accumulate $27,000 in 3 years. Use the appropriate formula
to find the sinking fund payment (in $) she would need to make at the end
of each six months, at 8% interest compounded semiannually. (Round your
answer to the nearest cent.)
$

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Solve by using the sinking fund or amortization formula. Betty Price purchased a new home for $245,000 with a 10% down payment and the remainder amortized over a 15 year period at 9% interest. (a) What amount (in $) did Betty finance? $ (b) What equal monthly payments (in $) are required to amortize this loan over 15 years? (Round your answer to the nearest cent.) $ (c) What equal monthly payments (in $) are required if Betty decides to take a 20 year loan rather than a 15 year loan? (Round your answer to the nearest cent.) $
Barbara Cartland is scheduled to receive $20,000 in two years. When she receives it, she will invest it for 5 more years, at 8 percent per year. How much money will she have 7 years from now? $44,079.84 $58,773.12 $47,209.19 $36,733.2 $29,386.56
Julia just retired with $340,000 in her retirement account. Assuming that she can earn 4.8% compounded monthly on her funds, how many month-end withdrawals of $4,000 will she be able to take before the fund is depleted? Round your answer to 2 decimal places. Your Answer:
Tiffany set up a fund that would pay her family $4,000 at the beginning of every month, in perpetuity. What was the size of the investment in the fund if it was earning 3.00% compounded semi-annually? Round to the nearest cent
Find X, the deposit at the end of 15 years. Use the perpetuities for this question that is given on the second photo
jenna mcintosh made end of month deposits of $895 into a retirement fund at 7.50% compounded monthly for 15 years. after 15 years the balance in the fund was converted into a retirement income fund from which jenna withdrew 6225 at the end of every three months at 6.75% compounded semi annually. how long can jenna make withdrawls from the retirement income fund? What is the accumulated value in jenna's retirement fund after 15 years?
hi! help me on my assignment. provide a step-by-step explanation for this problem. thanks!
Mr. Deneau accumulated $98000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $5400 at the end of every three months from the fund. If interest is 4.1% compounded annually, for how long can Mr. Deneau make withdrawals? State your answer in years and months (from 0 to 11 months).
0. Tammy is saving up money for an emergency fund. She hopes to have 4 months' worth of income accumulated, and she takes home $2500 a month. She plans on depositing monthly increments for the next year and a half into a sinking fund which earns 8% Interest, How much should each deposit be?
Keisha has $5,000 now and plans on investing it in a fund that will pay her 16% interest compounded quarterly. How much will she have accumulated after 2 years? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Annual contributions of $1,000 will be made to a TFSA for 25 years. The contributor expects investments within the plan to earn 7% compounded annually. What will the TFSA be worth after 25 years if the contributions are made: a. At the end of each year? (Round your answer to 2 decimal places.) TFSA's worth $ b. At the beginning of each year? (Round your answer to 2 decimal places.) TFSA's worth 69 c. By what percentage does the answer to Part (b) exceed the answer to Part (a)? (Do not round intermediate calculations and round your final percentage answer to 1 decimal place.) Percent difference %
Scarlett has $22,500 available today to invest for 20 years. Scarlett desires an investment fund balance of $100,000 at that time. What interest rate (compounded annually) must Scarlett earn to reach the desired balance in 20 years? Enter the percent rounded to two digits after the decimal; enter 2.04 for 2.044% or 2.05 for 2.045%. Answer %

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS