An engineer wishes to set up a special fund by making uniform semiannual end-of-period deposits for 20 years. The fund is to provide P25,000 at the end of each of the last five years of the 20-year period. The interest is 8% compounded semiannually. Note: Make a cashflow diagram.
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An engineer wishes to set up a special fund by making uniform semiannual end-of-period deposits
for 20 years. The fund is to provide P25,000 at the end of each of the last five years of the 20-year
period. The interest is 8% compounded semiannually.
Note: Make a cashflow diagram.
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- If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?Explain the Step By Step Process. An engineer wishes to set up a special fund by making uniform semiannual and end-of-period deposits for 20 years. The fund is to provide P100,000 at the end of each of the last five years of the 20-year period. If interest is 8% compounded semiannually, what is the required semiannual deposit to be made? ANS: P6,193.39Urgently need. An engineer wishes to set up a special fund by making uniform semiannual start-of-period (period 0) deposits for 10 years. The fund is to provide P100,000 at the end of each year of the last five years of the 10-year period. If interest is 10% compounded yearly, what is the required semiannual deposit to be made?
- A fund of 25000 is to be accumulated by means of deposits of 1000 at the beginning of every year as long as necessary. If the fund earns an effective rate of interest of 8%, find how many regular deposits will be necessary and the size of a final deposit to be made on the last regular deposit.A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the penodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is SFind the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. $49,000; money earns 4% compounded semiannually for 13.5 years
- A contractor wishes to set up a special fund by making uniform semiannual end-of-period deposits for 20 years. The fund is to provide $10,000 at the end of each of the last 5 years of the 20-year period. If interest is 8%, compounded semiannually, what is the required semiannual deposit?an electrical engineer desires to set up fund by making uniform monthly end of period deposits for a decade. The fund will provide 250000 php at the end of each of the last 3 yrs of the entire period . If the interest is 6% compounded monthly, what is the monthly payable?Your company has decided to set up a fund for its employees with an initial payment of Rs 27,500 compounded six-monthly over a four-year period at a six monthly interest of 3.5%.(a) Calculate the size of the fund at the end of 4 years.(b) Calculate the effective annual interest rate.iv) Show that P = A/r. for an ordinary annuity to infinity.
- Payments of $4,000 are made into a fund at the beginning of each year for ten years. The fund is invested at an annual effective rate of i. The interest generated is reinvested at 13%. The total accumulated value at the end of the ten years is $110,000. Find i. (Round your answer to two decimal places.)A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the penodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is S. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Complete the table, rounding each entry to the nearest cent. (Do not include the $ symbol in your answers.) Periodic Payment Interval Number Payment Interval Interest Increase in Payment (Beginning) Balanye at End of Payment Interval Fund i=5.9% 1 2. 3. 4. Enter your answer in each of the answer boxesA fund is being formed by monthly deposit of P2,000 at 6% compounded monthly a) Find the amount after a year b) What is the amount in the fund just after the 5 deposit? c) Construct the sinking fund schedule for a 5 month period.