are ? k of &, Deposits of $100 are made at the end of each calendar year from 2014 through 2019 inclusive. The resulting fund is to be used to buy a perpetuity with annual payments following the pattern X, 4X, 7X, 10X,... with the first payment on December 31, 2021. If the anmual effective rate of interest is 5%, find X. A. 0.558 B. 0.567 C. 0.576 D. 0.585 E. 0.594
Q: What equal annual payment must be deposited into a sinking fund to accu- mulate $60,000 in 20 years…
A: Sinking Funds refers to an arrangement of annuity for a definite time period for the accumulation of…
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: Monthly deposit can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv], [type])…
Q: he internal rate of return method is used to analyze a $831,500 capital investment Determine a…
A: Internal rate of return is rate on which present value of cash flow is equal to the initial…
Q: In order to meet some future liabilities, a company makes the following series of regular…
A: Given information : First three year payments made in every 4 months 13633 Second four year…
Q: On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,000 by September 1, year 5.…
A: Amount to be accumulated = P1000000 Number of deposits (n) = 4 r = 10% Let the annual deposit = A
Q: Which formula can be used to estimate the accumulated amount in a fund earning 8.5% interest at the…
A: An approach to determine how much money a stream of payments will be worth at some future date is to…
Q: If $1000 is deposited at the end of each year for 5 years into an ordinary annuity eaming 9.52%…
A: Using excel
Q: Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the…
A: FV = $1,000,000 r = 5.8% Number of compounding per year (m) = 2 Period (t) = 30 Years
Q: Qin Jiushao deposits 1, 000 into a fund on January 1, 2020 and then another deposit of unknown…
A: Here, Deposit Amount is $1000 Time Weighted Yield Rate is 10%
Q: Deposits of $6000 are put into a fund at the end of each month for the next 9 years. At the end of…
A: The perpetuity refers to the regular payment of receipt for an infinite period of time at a certain…
Q: Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The…
A: The future value for 4 years of ordinary annuity $9,559 is computed by multiplying annual deposit,…
Q: On March 15, year 1 ABC Corporation adopted a plan to accumulate P1,000,000 by September 1, year 5.…
A: Annual deposit = X Interest rate (i) = 10%
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: Time taken can be calculated using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The…
Q: A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every…
A: given, p= $21,000 n=6 r= 5.9%
Q: You deposited $8,300 in a savings account. The account will earn 8 percent annual compound interest,…
A: Interest: It can be defined as the amount that is charged by the lender on the amount lent to the…
Q: Determine the combined present value as of December 31, 2021, of the following four payments to be…
A: Present value: The value of today’s amount to be paid or received in the future at a compound…
Q: On March 15, 20x1, Ashe Company adopted a plan to accumulate P5,000,000 by September 1, 20x5. Ashe…
A: Given: Future value - P5,000,000 Interest rate = 10% Years = 4 Annuity is annuity due. FV of annuity…
Q: On 1 January 2019 the total present value of all the investments is R75,998.34. If the interest rate…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: The first $4,750 deposit is made on December 31, 2020, interest is compounded annually, and interest…
A: Given data; deposit amount = $4750 number of payments = 4 rate of interest = 12%
Q: Sarasota Corporation, having recently issued a $20,134,100, 15-year bond issue, is committed to make…
A: Sinking Fund refers to amount which is set aside from profits to meet future known liability. It…
Q: A certain amount was invested on 2021 such that it generated a periodic payment of $10,000 at the…
A: The present value of the annuity due is the current worth of a cash flow series received or paid at…
Q: Find
A: RATE (7.2%/2) 0.036 PERIOD (45*2) 90 PRESENT VALUE 0 FUTURE VALUE $700,000
Q: Qin Jiushao deposits 1, 000 into a fund on January 1, 2020 and then another eposit of unknown amount…
A: Here, Time Weightage Yeild Rate is 10% ( It will be considered only) Deposit is 1000
Q: On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,00 by September 1, year 5.…
A: When an equal amount is paid every period at the beginning of each period, it is called as an…
Q: Solve by using the sinking fund or amortization formula. (Round your answer to the nearest cent.)…
A: Note: It is a situation where multiple questions have been asked, so we are allowed to solve the…
Q: A fund is created by making equal monthly deposits of P4,000 at 9% converted monthly for half a…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: To calculate the Required payment of sinking fund, PMT function in the excel can be used. PMT(rate,…
Q: Deposits of $100 are made at the end of each calendar year from 2014 through 2019 inclusive. The…
A: Perpetuity is a series of payment which is made for an indefinite period of time. It does not end in…
Q: n the information given int he following case, determine the number of years that the given oridinay…
A: Initial amount (PV) = $ 26,800 Annual cash flow (P) = 6,561 Rate of return (r) = 6% Number of year =…
Q: Using a discount rate of 5.5% compounded annually, a pension fund estimates that the present value…
A: Rate sensitive assets and liabilities: The assets and liabilities whose prices change with changes…
Q: estimated cost of $5,000,000
A: Annuity refers to the series of payments made at equal set of intervals. Annuity due refers to the…
Q: : On January 1, 1999, Bitf purchases an annuity for 50600 dollars. The annuity makes annual payments…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: A contractor wishes to set up a special fund by making uniform semiannual end-of-period deposits for…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: Use the sinking fund formula shown to the right to determine the semiannual payments with 8%…
A: Sinking fund can be defined as the saving fund, in which, the business organizations tend to…
Q: On November 17, 2020 a sum of $42,200 was deposited into an account. What would be the future value…
A: Future Value(FV) is value f current amount at future point of time. It is done by compounding that…
Q: Coronado Corporation, having recently issued a $ 20,153,400, 15-year bond issue, is committed to…
A: The question is based on the concept of Financial Management.
Q: Calculate the yield rate of the fund during the first six months of 2017, quoted in terms of the…
A:
Q: annual deposit should BOBOT Company make for four years in order to accumulate the desired amount on…
A: Plan to accumulate = P5,000,000 by July 1,2023 To Make 4 equal annual deposits at interest 10%…
Q: If $1000 is deposited at the end of each year for 5 years into an ordinary annuity earning 8.99%…
A: Interest amount using ordinary annuity can be calculated by subtracting principal by the end of the…
Q: For each of the following cases, calculate the present value of the annuity, assuming the annuity…
A: Annuity is an cashflow which is transferred between sender and recipient as a series of payments
Q: A fund is created by making equal monthly deposits of P4,000 at 9% converted monthly for half a…
A: According to the time value of money concept, a sum of money in the future will have different…
Q: What sinking fund payment would you need at the end of each three months at 12% interest compounded…
A: Information Provided: Interest = 12% compounded quarterly Amount = $3500 Term = 4 years
Q: Waterway Industries will receive $26500 today (January 1, 2020), and also on each January 1st for…
A: Total Present value is the sum of the present value of future cashflows Present value = future value…
Q: Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the…
A: Excel Spreadsheet:
Q: Find the future value of each annuity due. Then determine how much of this value is from…
A: Annuity Due occurs when stream of payments starts from current date and because of which, each…
Q: se the sinking fund formula shown to the right to determine the monthly payment needed to accumulate…
A: A sinking fund is a fund in which the period payment are made for the total period of the fund.
Q: You deposit $9500 per quartely for 1 years at i, = 8.31 %. This fund then provides for a perpetuity…
A: Perpetual payment is an arrangement to cash flows for an infinite time period, under the perpetuity…
Q: A man bought an eapt casting P300k payable in 12 quarter payments with i = 24%, determine…
A: Loan = 300,000 N = 12 Quarters Annual Rate = 24% Interest Rate = Annual Rate / 4 = 24%/4 = 6% per…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?Deposits of $100 are made at the end of each calendar year from 2014 through 2019 inclusive. The resulting fund is to be used to buy a perpetuity with annual payments following the pattern X, 4X, 7X, 10X,... with the first payment on December 31, 2021. If the anmal effective rate of interest is 5%, find X. A. 0.558 B. 0.567 C. 0.576 D. 0.585 E. 0.594Consider an amount of 25,000 in a fund today, October 25, 2022. Determine its value on the specified date and the given interest assumption. On Dec. 25, 2022 at 6 1/4% ordinary simple interest rate p.a.
- On January 1, 2021, you deposited $5,500 in a savings account. The account will earn 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 9 years? (Future Value of $1.Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided.On January 1, 2021, you deposited $6,100 in a savings account. The account will earn 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 4 years? (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 2. What is the total interest for the 4 years? (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 3. How much interest revenue did the fund earn in 2021 and in 2022?You deposit $9500 per quartely for 1 years at i, = 8.31 %. This fund then provides for a perpetuity of $6100 per year, with the first payment made n month after the final deposit. At the time of the first perpetuity payment, interest rates fall to i, = 2.37 %. Find n. %3D Answer: 30.36
- 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 Payment Frequency Time Periods (years) Nominal Rate (%) Interest Compounded Future Value (Objective) $______ every year 14 8 annually $350,000(please answer both questions) At an annual effective rate of interest i=3%, find the PV of a perpetuity-immediate with annual payments of 30, 40, 50, 60, *** a) 9520 b) 10800 c) 11254 d) 12111 e) 12500 Find the PV of a perpetuity-immediate with payments of 1 in year 1, 2 in year 2, 3 in year 3,..., and 20 in year 20. After 20, the payments remain constant at 20. The annual effective rate of interest i = 4%. a) 280.75 b) 319.14 c) 353.35 d) 427.01 e) 450.00On April 12, 2019, BOBOT Company adopted a plan to accumulate P5,000,000 by July 1, 2023. BOBOT plans to make four equal annual deposits to a fund that will earn interest at 10% compounded annually. BOBOT made the first deposit on July 1, 2019. Future value factors are as follows: Future value of 1 at 10% for 4 periods 1.46 Future amount of ordinary annuity of 1 at 10% for 4 periods 4.64 Future amount of annuity in advance of 1 at 10% for 4 periods 5.11 How much annual deposit should BOBOT Company make for four years in order to accumulate the desired amount on July 1, 2023 (rounded)? a. P730,000 b. P978,500 c. P1,250,000 d. P1,077,500
- On September 1, 2010, you decided to put $ 14000 in a money market fund. On March 1, 2015, you deposit another $ 17000 and on Jan 1, 2018, you added another $ 18000. This fund pays interest at the annual rate of 7.2%, compounded monthly. Find the future value of the fund on January 1, 2019, one year after the third deposit. a. $ 72654.78 b. $ 69291.83 c. $ 67188.54 d. $ 72762.50What annual deposit is necessary to have $15,000 in 7 years if all the money is deposited at 1.5% interest compounded annually? (a) State the type. amortization sinking fund ordinary annuity present value of an annuity present value (b) Answer the question. (Round your answer to the nearest cent.) $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