Clearlake Optical has a $50,000 note that comes due in 3 years. The owners wish to create a sinking fund to pay this note. If the fund earns 1.5% compounded semiannually, how much must each semiannual deposit be? (Round your answer to the nearest cent.)
Q: Jessica made equal deposits at the beginning of every 3 months into an RRSP. At the end of 8 years,…
A: Using excel PMT function
Q: Juan invested $10,500 into a fund earning 7.50% compounded monthly. She plans to withdraw $700 from…
A: Working note for calculations. Note for Converting Quarter into years:- Number of year to deplete =…
Q: 13. happy Corp. established a fund where they pay $200 annually into the fund. The interest rate…
A: Year Year-1 Year-2 Year-3 Year-4 Year-5 Total Amount that $200 invested each year will become…
Q: Tara wishes to accumulate $25,000 in 3 years. Use the appropriate formula to find the sinking fund…
A: Future Value = $25,000 Number of Years = 3 Years Interest Rate = 8% compounded semi-annually
Q: Edward made equal deposits at the beginning of every 3 months into an RRSP. At the end of 6 years,…
A: Effective annual rate = (1 + Monthly interest rate)^12 - 1 = (1 + 3.75%/12)^12 - 1 =0.03815129256…
Q: Maria deposits $2,000 in a savings account that pays interest at an annual compound rate of 3%. Two…
A: The amount which is earned by depositor on the deposits is known as interest. This interest can be…
Q: Recent sales of some real estate and record profits make it possible for a manufacturer to set aside…
A: When the annuity withdrawal is at beginning of period, it is knows as annuity due and when annuity…
Q: Our clients saved $2,500,000 for retirement. They wish to withdraw $20,000 from the fund each month…
A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…
Q: Clearlake Optical has a $50,000 note that comes due in 6 years. The owners wish to create a sinking…
A: Future Value = $50,000 Time period = 6 Years Interest rate = 3.5%
Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…
A: Amount = Principal (1+(rate/100))^n Initially, we deposit P 100,000 in a fund with a 25% annual…
Q: What annual deposit into a sinking fund at 5% compounded annually will be needed to raise half a…
A: P500000 is needed at the end of 10 years. The Fair value at the end of 10 years = Annual Deposit x…
Q: If Luis Jimenez makes annual deposits of $1,000 into a savings account for 30 years, how much will…
A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…
Q: On September 1, 2010, you decided to put $ 12000 in a money market fund. On March 1, 2015, you…
A: Note: All the Given Options are incorrect, so we are solving the correct one for you as per the…
Q: interest dues on it. Three years from this withdrawal you start taking Php 20,000 per year out of…
A: Solution:- Calculation of Schedule of Investment fund ( Amount in Php) Year Opening balance…
Q: Clearlake Optical has a $50,000 note that comes due in 5 years. The owners wish to create a sinking…
A: In this question, we need to compute the semiannual deposit amount in the sinking fund. A sinking…
Q: Sue has contributed $2,843.00 every three months for the last 11 years into an RRSP fund. The…
A:
Q: Eleanor makes year-end deposits of P500.00 the first year, P550.00 the second year, P605.00 the…
A: Computation:
Q: Joe deposits GHS10 today and another GHS30 in five years into a fund paying simple interest of 11%…
A: In this question, the accumulated value of the deposits of Joe and Tina is equal. here we have to…
Q: Juliana has contributed $2,787.00 every six months for the last 14 years into an RRSP fund. The…
A: Future worth is the amount that an investor expects from the cash flows in each period. Future worth…
Q: Tara wishes to accumulate $29,000 in 5 years. Use the appropriate formula to find the sinking fund…
A: first thing is calculate semiannual interest rates and semiannual period and from table you can get…
Q: Troy Long wishes to deposit a single sum of money in a savings account so that five equal annual…
A: A payout annuity is the type of annuity where a regular amount is withdrawn from the account.…
Q: Mrs. Quiton deposited Php 120,000.00 into a college fund at the beginning of every month for 10…
A: ANNUITY is the series of equal payments made at regular interval of time.
Q: If ₱17,000 is deposited at the end of each year for 16 years in a bank that give 7% interest per…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Use the formula for the value of an annuity to solve:To offer scholarship funds to children of…
A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…
Q: Chris Spear invested $15,000 today in a fund that earns 8% compounded annually. To what amount will…
A: Future value = Investment amount x FVF(8%, 3years) = $15,000*1.25971…
Q: Shawn made equal deposits at the beginning of every 3 months into an RRSP. At the end of 10 years,…
A: Compounding of interest means, interest is received on principal as well as the earned interest…
Q: Tara wishes to accumulate $27,000 in 3 years. Use the appropriate formula to find the sinking fund…
A: Given information: Future value is $27,000 Number of years is 3 Interest rate is 8% compounded…
Q: Newman Hitchcock is 37 years old today and he wishes to accumulate $536,000 by his 60 th birthday so…
A: We use PMT function to calculate annual deposit (in financial calculator or excel)
Q: Joe Franklin deposits $22,000 in a savingsaccount that pays 6% interest compounded monthly.Three…
A: The future amount is determined by using future amount formula and that formula use the present…
Q: Clearlake Optical has a $50,000 note that comes due in 6 years. The owners wish to create a sinking…
A: Given Information Interest rate = 2.5% compounded semi-annually Time Period = 6 years Accumulated…
Q: Clearlake Optical has a $50,000 note that comes due in 6 years. The owners wish to create a sinking…
A: Sinking fund is a fund where individuals set a side certain sum of money on a regular basis for…
Q: If you wish to accumulate $10,000 over a 5-year period by placing $200 a month, starting next month,…
A: Calculation of spreadsheet function of number of period: Answer: The number of periods function is…
Q: Meghan made equal deposits at the beginning of every 3 months into an RRSP. At the end of 6 years,…
A: Periodic payments can be made monthly, quarterly, semi-annually or annually. Periodic payments are…
Q: The student who wins the Fancy Est Sunglasses Contest will receive a cash prize each year. The…
A: In this perpetuity value is to be find out. Perpetuity is basically a value which accounts for…
Q: You deposit 20,000 today into a fund paying (i)=8%. From this fund, you receive 10 payments of R,…
A: Computation of R:
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: Tuck Hardware Store will have $30,000 payment due in 5 years. How much would they need to invest…
A: Computation:
Q: Georgia deposits $4,000 every three months for five years. The first deposit is made on March 31,…
A: Money on December 31, 2020, immediately after her last deposit = Quarterly deposit x Factors for…
Q: On September 1, 2010, you decided to put $ 15000 in a money market fund. On March 1, 2015, you…
A: The future value of an investment is the approximate value of buying and holding an investment for a…
Q: Brittany contributed $3,750 at the end of every 3 months, for 5 years, into a Register. Retirement…
A: Solution: An amount deposited at end of every period is known as ordinary annuity. The formula for…
Q: ma'am minda started to deposit P2,000 quarterly in a func that pays 5.5% compounded quarterly. How…
A: Quarterly Deposit = 2000 Interest rate = 5.5℅/4 = 1.375℅ per quarter N = 24 quarters
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: Jenny is planning to deposit ₱17,000.00 Quezon Metropolitan Bank is offering 7.5%…
A: Compound interest is also called as interest on the amount of interest. In other words this is the…
Q: A business must raise $70,000 in 8 years. What should be the size of the owners' quarterly payment…
A: In this, we have to calculate future value FACTOR and from that, we can get sinking fund payment. A…
Q: Suppose that you have an opportunity to invest in a fund that pays 12% interest compounded annually.…
A: The investment is refer as engaging funds with an financial institution or bank at specific rate of…
Q: Kenny decided to make a P1,000 monthly deposit in a fund that pays 6% compounded quarterly. How much…
A: Monthly deposit (P) = P1000 Interest rate = 6% Monthly interest rate (r) = [{1+(0.06/4)}4]1/12-1…
Q: 1. Mark started to deposit P18,000 semi-annually in a fund that pays 5% compounded semi-annually.…
A:
Q: Tara wishes to accumulate $29,000 in 5 years. Use the appropriate formula to find the sinking fund…
A: Sinking fund is referred as the account which consists amount of money kept aside to pay off a debt.…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A trust fund is to be formed by depositing #4766 twice a year for 7 years in a bank that promises to pay a fixed rate over the entire term. If the amount of the fund at the end of the term is #86123, then what is the rate (in %) compounded semi-annually? Round your answer to 2 decimal places.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: 30.36Sebastopol Movie Theater will need $170,000 in 4 years to replace the seats. What deposit should be made today in an account that pays 0.6% compounded semiannually? (a) State the type. sinking fundordinary annuity present valueamortizationpresent value of an annuity (b) Answer the question. (Round your answer to the nearest cent.)
- Show Solution. Topic: Simple Annuity Due 1. Marlon places P3,600 at the beginning of every six months in a fund that earns at 12% compounded semiannually. How much is in the fund just before the 10th deposits is made?You deposit $1,000 in a fund at the end of each year for a 10- year period. The fund pays 5% compounded annually. How much money is available to withdraw immediately after your last deposit?Use the formula for the value of an annuity to solve:To offer scholarship funds to children of employees, a company invests $15,000 at the end of every three months in an annuity that pays 9% compounded quarterly. a. How much will the company have in scholarship funds at the end of ten years? b. Find the interest.Round answers to the nearest dollar.
- A 10,000 loan is paid off over 10 years; interest is 6 percent effective. The borrower uses a sinking fund that pays 3 percent interest (effective) and makes yearly deposits into the fund (end of the year). Interest on the loan is charged yearly (end of the year). 14. What is the yearly deposit (sinking fund deposits and interest?) 15. a101.06&.03Stein and Company has established a sinking fund to retire a bond issue of $700,000, which is due in ten years. How much is the quarterly sinking fund payment if the account pays 16% annual interest compounded quarterly? E Click the icon to view the $1.00 sinking fund payments table. The sinking fund payment is S: (Round to the nearest cent as needed.)GQ Corporation hopes to withdraw 59,000 at the end of each year for six years from a fund that earns 7% interest. How much should the corporation invest today? Draw a timeline to illustrate the problem. Interest is compounded annually. (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) Caro today (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of an Ordinary Annuity table) (Click the icon to view the Present Value of an Annuity Due table) How much should the corporation invest today? (Use the present value and future value tables, a financial calculator, a spreadsheet or the formula method for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, XXXXXXX Round your final answer to the nearest cent. SXXX) The…
- Answer the Situation below correctly show your complete solution.I already provided the answer I just need the SOLUTION.( Annuities )A deposit of 120 000.00 Php is placed into a college fund at the beginning of every month for 10 years . The fund earns 9 % annual interest , compounded monthly , and paid at the end of the month . How much is in the account right after the last deposit ? a . The type of annuity illustrated in the problem is _____________________.b . The term is __________________.c . The number of conversion period is_____________________________.d . The interest rate per period is___________. e . The present value of the deposit is___________. Answers: a. Simple Annuity; b. 10; c. 12; d. 0.075; e. 30 000.00 PhpDobsen Door Manufacturer s sets up sinking fund to raise $75000 to pay off the maturity value of a three year note. If the sinking fund earns 3.8% compounded monthly how much should they set aside each month?Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If $1,798 is deposited into this annuity every month, how much is in the account after 8 years? How much of this is interest? Type the amount in the account: $212590.28 (Round to the nearest dollar.) Type the amount of interest earned: $39982.28 (Round to the nearest dollar)