$1.00 Sinking Fund PaymentsRate per periodPeriods1%2%3%4%6%8%11.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.000000020.4975124 0.4950495 0.4926108 0.4901961 0.4854369 0.48076920.3300221 0.3267547 0.3235304 0.3203485 0.3141098 0.30803350.2462811 0.2426238 0.2390270 0.2354900 0.2285915 0.221920850.1960398 0.1921584 0.1883546 0.1846271 0.1773964 0.170456560.1625484 0.1585258 0.1545975 0.1507619 0.1433626 0.136315470.1386283 0.1345120 0.1305064 0.1266096 0.1191350 0.11207248.0.1206903 0.1165098 0.1124564 0.1085278 0.1010359 0.09401480.1067404 0.1025154 0.0984339 0.0944930 0.0870222 0.0800797100.0955821 0.0913265 0.0872305 0.0832909 0.0758680 0.0690295110.0864541 0.0821779 0.0780774 0.0741490 0.0667929 0.0600763 What semiannual sinking fund payment would be required to yield $47,000 seven years from now? The annual interest rate is 6% compounded semiannually.| Click the icon to view the table.The sinking fund payment is S(Round to the nearest cent as needed.)

Sinking fund (SF) is an account in which a fixed amount is deposited periodically and interest is…

What semiannual sinking fund payment would be required to yield $47,000 seven years from now? The annual interest rate is 6% compounded semiannually. | Click the icon to view the table. The sinking fund payment is S. (Round to the nearest cent as needed.)

What semiannual sinking fund payment would be required to yield $47,000 seven years from now? The annual interest rate is 6% compounded semiannually. | Click the icon to view the table. The sinking fund payment is S. (Round to the nearest cent as needed.)

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

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Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the given conditions. (Round your answer to the nearest cent.) FV = $1,900,000, r = 9%, compounded monthly for 25 years
K (Present value of an annuity due) Determine the present value of an annuity due of $2,000 per year for 25 years discounted back to the present at an annual rate of 6 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 11 percent? CELE (Round to the nearest cent.) $(Round to the nearest cent.) a. If the annual discount rate is 6 percent, the present value of the annuity due is $ b. If the annual discount rate is 11 percent, the present value of the annuity due is:
A company wants to have $30,000 at the beginning of each 6-month period for the next 4 1/2 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.42%, compounded semiannually? (b) Solve the problem. (Round your answer to the nearest cent.)$ _____
A $3,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. A. present valueB.sinking fund C.present value of an annuityD.amortizationE.ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.)
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $90,000 in a fund paying 3% per year, with monthly payments for 10 years, if the fund contains $30,000 at the start
Use the sinking fund formula shown to the right to determine the semiannual payments with 6% interest are compounded semiannually for 4 years to accumulate $17,000. p=Arn1+rnnt−1 The semiannual invested payment is $
Let the annual interest rate be 8%. Compute Enter an answer correct to 6 decimal places. 9| Enter an answer correct to 6 decimal places. A fund is to be created which pays out a scholarship of £1,000 every year in perpetuity. The first scholarship will be paid out in 4 years' time. Assuming an interest rate of 9%, how much should be paid into the fund? £ Enter an answer correct to 2 decimal places.
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
For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity). (Round your answer to the nearest cent.) Sinking Fund Payment $ 27658 x Payment Frequency every year Time Period (years) 14 Interest Nominal Rate (%) Compounded annually 8 Future Value (Objective) $750,000
A $6,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. ordinary annuity sinking fund amortization present value of an annuity present value (b) Answer the question. (Round your answer to the nearest cent.)
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT [See Quick Example 2.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $40,000 in a fund paying 3% per year, with monthly payments for 5 years PMT = $
determine the size of the payments that must be made to a sinking fund in order to accumulate $233,188 if the interest rate is 5.25% compounded quarterly and payments are made for 7 1/4 years. Use TVM solver

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