The amount of sinking fund payment required to be maintained by Alliance industries for a future obligation of $ 1 , 800 , 000 where payment frequency is 6 months for 4 years at a nominal rate of return of 8 % and interest is compounded semiannually.

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Answer 1

Question

Chapter 12, Problem 18AT

(a)

To determine

To calculate: The amount of sinking fund payment required to be maintained by Alliance industries for a future obligation of $1,800,000 where payment frequency is 6 months for 4 years at a nominal rate of return of 8% and interest is compounded semiannually.

(b).

To determine

To calculate: The amount by which the sinking fund payment at a nominal rate of return of 6% and interest compounded semiannually would be greater than 8% if Alliance Industries has an obligation of $1,800,000 where payment frequency is 6 months for 4 years.

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5) You are purchasing a game for $30. You have a 5% off coupon and sales tax is 5%. What will your final price be? Does it matter if you take off the coupon first or add in the tax first? 6) You have ten coupons that allow you to take 10% off the sales price of a jacket, and for some strange reason, the store is going to allow you to use all ten coupons! Does this mean you get the jacket for free? Let's really think about what would happen at the checkout. First, the teller would scan the price tag on the jacket, and the computer would show the price is $100. After the teller scans the first coupon, the computer will take 10% off of $100, and show the price is $90. (Right? Think about why this is.) Then after the teller scans the second coupon, the computer will take 10% off of $90. (a) Continue this reasoning to fill in the table below showing the price of the jacket (y) after you apply x coupons. (b) Make a graph showing the price of the jacket from x = 0 to x = 10 coupons applied.…

Answer 2

Question

Chapter 12, Problem 18AT

(a)

To determine

To calculate: The amount of sinking fund payment required to be maintained by Alliance industries for a future obligation of $1,800,000 where payment frequency is 6 months for 4 years at a nominal rate of return of 8% and interest is compounded semiannually.

(b).

To determine

To calculate: The amount by which the sinking fund payment at a nominal rate of return of 6% and interest compounded semiannually would be greater than 8% if Alliance Industries has an obligation of $1,800,000 where payment frequency is 6 months for 4 years.

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Answer 3

Question

Chapter 12, Problem 18AT

(a)

To determine

To calculate: The amount of sinking fund payment required to be maintained by Alliance industries for a future obligation of $1,800,000 where payment frequency is 6 months for 4 years at a nominal rate of return of 8% and interest is compounded semiannually.

(b).

To determine

To calculate: The amount by which the sinking fund payment at a nominal rate of return of 6% and interest compounded semiannually would be greater than 8% if Alliance Industries has an obligation of $1,800,000 where payment frequency is 6 months for 4 years.

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Answer 4

Question

Chapter 12, Problem 18AT

(a)

To determine

To calculate: The amount of sinking fund payment required to be maintained by Alliance industries for a future obligation of $1,800,000 where payment frequency is 6 months for 4 years at a nominal rate of return of 8% and interest is compounded semiannually.

(b).

To determine

To calculate: The amount by which the sinking fund payment at a nominal rate of return of 6% and interest compounded semiannually would be greater than 8% if Alliance Industries has an obligation of $1,800,000 where payment frequency is 6 months for 4 years.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 18AT

(a)

To determine

To calculate: The amount of sinking fund payment required to be maintained by Alliance industries for a future obligation of $1,800,000 where payment frequency is 6 months for 4 years at a nominal rate of return of 8% and interest is compounded semiannually.

(b).

To determine

To calculate: The amount by which the sinking fund payment at a nominal rate of return of 6% and interest compounded semiannually would be greater than 8% if Alliance Industries has an obligation of $1,800,000 where payment frequency is 6 months for 4 years.

Answer 6

Chapter 12, Problem 18AT

(a)

To determine

To calculate: The amount of sinking fund payment required to be maintained by Alliance industries for a future obligation of $1,800,000 where payment frequency is 6 months for 4 years at a nominal rate of return of 8% and interest is compounded semiannually.

Answer 7

Chapter 12, Problem 18AT

(a)

To determine

To calculate: The amount of sinking fund payment required to be maintained by Alliance industries for a future obligation of $1,800,000 where payment frequency is 6 months for 4 years at a nominal rate of return of 8% and interest is compounded semiannually.

Answer 8

(b).

To determine

To calculate: The amount by which the sinking fund payment at a nominal rate of return of 6% and interest compounded semiannually would be greater than 8% if Alliance Industries has an obligation of $1,800,000 where payment frequency is 6 months for 4 years.

Answer 9

(b).

To determine

To calculate: The amount by which the sinking fund payment at a nominal rate of return of 6% and interest compounded semiannually would be greater than 8% if Alliance Industries has an obligation of $1,800,000 where payment frequency is 6 months for 4 years.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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The amount of sinking fund payment required to be maintained by Alliance industries for a future obligation of $ 1 , 800 , 000 where payment frequency is 6 months for 4 years at a nominal rate of return of 8 % and interest is compounded semiannually.

Solution Summary: The author calculates the amount of sinking fund payment required by Alliance industries for a future obligation of 1,800,000.

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To calculate: The amount of sinking fund payment required to be maintained by Alliance industries for a future obligation of $1,800,000 where payment frequency is 6 months for 4 years at a nominal rate of return of 8% and interest is compounded semiannually.

To calculate: The amount by which the sinking fund payment at a nominal rate of return of 6% and interest compounded semiannually would be greater than 8% if Alliance Industries has an obligation of $1,800,000 where payment frequency is 6 months for 4 years.

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