The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $100,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030?

Q: You wish to have $10,000 on August 1, 2026.  You plan to to make monthly deposits into an account…

A: The question is based on the concept of Future value and annuity

Q: How much must be deposited today into the following account in order to have a $135,000 college fund…

A: Present value = Future value/(1 + r)n   Future value = 135,000 Quarterly interest rate (r) = 3.16%/4…

Q: Louis is saving for his retirement by making annual end of year deposits for 30 years into a bank…

A: Future value of Annuity: It is  the total value of annuity payments  accumulated at a specific  time…

Q: Use the appropriate formula to find the future value in dollars of $700 deposited at the beginning…

A: The answer is in the explanation section.Explanation:The interest is compounded annually, but the…

Q: A company wants to have $20,000 at the beginning of each six month period for the next 4 1/2 years.…

A: Using excel PV function

Q: If the bank compounds interest annually, how much will you have in your account on January 01, 2021?

A: It has been given in the question that the interest which a bank credits into the account has been…

Q: You are making $5,000 monthly deposits into a fund that pays interest at rate of 6% compounded…

A: We need to use the concept of time value of money (TVM) to solve the question. According to TVM, the…

Q: A company will receive payments of $8,000 per year for the next five years under a subscription…

A: In accordance with generally accepted accounting principles (GAAP), the company should record the…

Q: You planned on having your personal trust fund by making uniform semi-annual end-of-period deposits…

A: Let the semiannual deposit = A n = 20 years = 40 semiannual periods r = 8% per annum = 4%…

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: Calculate the future sum of $1,200, given that it will be held in the bank for 5 years and earn 14%…

A: Below details are given in the question : Present value = $1200 Time period = 5 years  Interest rate…

Q: If your trust fund promises to pay you $25, 000 on your 24th birthday (6years from today) and earns…

A: Present Value is the current worth of an amount to be received in future. To calculate the present…

Q: Van Buren Resources Inc. is considering borrowing $100,000 for 202 days from its bank. Van Buren…

A: Given:Borrowing amount=$1000000 for 202 daysPayable amount $3000 of interest at maturityRepaid…

Q: 0. The The Hendrix Company needs to repay a note payable of S $100,000 into a savings account at the…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: A trust fund is to be formed by depositing #4766 twice a year for 7 years in a bank that promises to…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: Clearlake Optical has a $50,000 note that comes due in 5 years. The owners wish to create a sinking…

A: Compound = Semiannually = 2Future Value = fv = $50,000Time = t = 5 * 2 = 10Interest Rate = r = 4.5 /…

Q: A 10,000 loan is paid off over 10 years; interest is 6 percent effective. The borrower uses a…

A: Sinking funds are funds which are set aside for the repayment of a particular debt or loan.

Q: A deposit of $5,000 per year is done starting at year 1 for 5 years. The sum of $60,000 is required…

A: Future value of the annuity is the amount that is being deposited each period and also amount of…

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: If $12,000 is deposited annually starting on January 1, 2020 and it earns 9%, how much will…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the…

A: Liability Liability is define as the financial obligation on the company which are arises during the…

Q: A scholarship fund is to be set up to provide monthly scholarships of $600. If the first payment is…

A: The concept of present value indicates that the value of a future amount of money is less than its…

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: Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: The PUR Foundation deposits $2,500,000 today in a fund earning 6% APR compounded monthly.  What will…

A: Deposit Amount (PV) is $2,500,000 Interest Rate (r) is 6% Time Period (n) is 10 years  Compounding…

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: A person deposits $2000 every year into an account which has an interest rate of 2.5% annually. If…

A: This problem is based on the concept of the time value of money, which states that a sum of money…

Q: You want to invest a 201911130 $ in your saving account at the end of the first year and increase…

A: First Deposit = 201,911,130 Annual Increase = 1,200,000 Time Period = N = 11 years End of period…

Q: what uniform annual amount should be deposit each year in order to accumulate 1 million at the end…

A: Annuity is the fixed amount deposited every year in a systematic investment plan on which compound…

Q: Commencing January 1 2022 Narelle plans to deposit $500 at the beginning of each month into an…

A: Here,MonthlyDeposit is $500Interest Rate for first six month is 3.76%Interest Rate for next six…

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…

Q: $360,000 is invested in a perpetuity at an interest rate of 5.2% per annum. a. Find the monthly…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: You want to save $8,000 by November 1, 2024. You plan to make annual deposits. The first deposit…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Adams Inc. will deposit $30,000 in a 6% fund at the end of each year for 8 years beginning December…

A: Future value:   Future value means the value of asset at the specified date in the future or it is…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.