Ikhwan's Sports Store needs RM840,000 in 6 years. If funds are invested an account earning 8% per year compounded quarterly, prepare the sinking fund table for Ikhwan.

Q: Choi Home Repair needs to accumulate $22,000 in 6 years to purchase new equipment. What sinking fund…

A: In the given question we require to calculate the sinking fund payment choi home repair need to make…

Q: To raise $5,500,000 to expand into new markets, a very successful laptop manufacturing company…

A: To find the periodic cost of debt, we will have to find 2 amounts, first for the semi-annual payment…

Q: Assume that you want to have $ 4100 saved in a sinking fund in 1 year. The account pays 3%…

A: Future value (FV) = $ 4100 Annual interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25%…

Q: You are considering investing $1,000 in an investment fund at the end of every quarter for the next…

A: As per the time value of money concept, a certain amount held today is worth more than holding the…

Q: Suppose someone wants to accumulate $40,000 for a college fund over the next 15 years. Determine…

A: Given, The required amount is $40000. Term is 15 years

Q: What amount of money invested today at 15 % interest can provide the following scholoarships: Php…

A: Given, R= 15% A1= PHP 30,000 N1= 6 A2= PHP 40,000 N2= 6 A3= PHP 50,000

Q: Suppose Mrs. Aquino would like to save Php 400 at the end of each month, for six months in a fund…

A: In the given question Php 400 will be deposited at the end of each month for 6 months. The amount…

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: 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: The New Fund had average daily assets of $2.2 billion last year. The fund sold $400 million worth of…

A: Turnover ratio is used to measures the efficiency of company to generate revenue with company asset.…

Q: A business must raise $90,000 in 6 years. What should be the size of the owners' quarterly payment…

A: We will apply the required formula to calculate the each quarterly payment using 6 years time and…

Q: A company needs to buy a building in 4 years, and must fund the down payment from its profits. The…

A: For availing a loan for an asset, a person is required to pay some amount as down payment. Down…

Q: If Summit Hospital invested $10,000 in excess cash today, what would be the value of its investment…

A: Present Value:   The present value is the value of the sum received at time 0 or the current period.…

Q: A local Dunkin’ Donuts franchise must buy a new piece of equipment in 4 years that will cost…

A: Future value required (FV) = $81000 Interest rate = 16% Quarterly interest rate (r) = 16%/4 = 4%…

Q: Identify the symbols involved if a pharmaceutical company wants to have a liability fund worth $200…

A: Payment made regularly for each period is known as annuity. To calculate the present value of…

Q: How much would a business have to invest in a high-growth fund to receive $22,000 every month for 5…

A: Solution:- When an equal amount is receivable each period, it is called annuity. So, present value…

Q: You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make the…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: A local retail franchise must buy a new piece of equipment in 6 years that will cost $89,000. The…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: A business sets up a sinking fund so they will have a $49,000.00 to pay for a replacement piece of…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: You are an employee that earns 20,000 per month. Assuming that you want to invest half of the amount…

A: The given problem can be solved using FV function in excel. FV function computes accumulated amount…

Q: If P20,000 is invested in a fund that pays 10% compounded annually, how much money will be in the…

A: Answer -    Part 1 -  If P20,000 is invested in a fund that pays 10% compounded annually, how much…

Q: how many years

A: The $50000  fund is a lump sum amount today. The $6000 withdrawl per year is ordinary annuity. To…

Q: Today, you invest P 100,000 into a fund that pays 25% interest compounded annually. Three years…

A: With the time value of money application, we compute the amount at each even of deposit and…

Q: Since 2007, a particular fund returned 13.2% compounded monthly. How much would a $6000 investment…

A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…

Q: you started making sinking fund deposit of 20000 today. its bank pays 6% compounded semi-annually…

A: Solution Given Present deposit 20000 Rate of interest 6% compounded semiannually…

Q: An investor needs $17,000 in 13 years. (a) What amount should be deposited in a fund at the end of…

A: Amount needed " FV" is $17,000 Time period is 13 years Interest rate is 7% Compounded Quarterly To…

Q: Tuck Hardware Store will have $30,000 payment due in 5 years. How much would they need to invest…

A: Computation:

Q: A business sets up a sinking fund so they will have a $46,000.00 to pay for a replacement piece of…

A: A Sinking fund refers to a fund that is kept aside or borrowed for the purpose of paying off a debt…

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: Time value of money techniques helps us to find the values of the deposits at different time…

Q: How much would a business have to invest in a high-growth fund to receive $14,000 every month for 6…

A: Investments are the ways by which individuals and corporations park or save their money and funds in…

Q: A business must raise $50,000 in 9 years. What should be the size of the owners' quarterly payment…

A: A sinking fund is a fund that contains money or funds set aside for paying obligations or debt or…

Q: An investment project has annual cash inflows of $2,800, $3,700, $: for the next four years,…

A: The payback period method is a very important technique used in capital budgeting for assessing…

Q: The New Fund had average daily assets of Php2.2 billion in the past year. The fund sold Php400…

A: Turnover ratio = Total Stock sold / Total stock held

Q: Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12…

A: Future value of annuity is regular deposit of fixed sum into a bank account, that will give certain…

Q: QuantAlpha fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Assume the rate…

A: Value of investment = Invested amount*(1+r)n *(1-annual charges %)n  r is rate of return of fund…

Q: Suppose you plan to buy the Blacklist Company by investing Php 5,000 every year to an investment…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Dave put $22,000 in an investment that is compounded yearly at a rate of 7%. The investment is over…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: You just placed $3000 in a fund expected to earn 12% APR compounded monthly.  At that rate, how many…

A: Amount placed now(PV) is $3000 Interest rate Compounded monthly is 12%  Monthly interest rate is…

Q: In order to have ₱1 million in a fund at the end of 15 years, how much must be deposited in the fund…

A: Amount to be deposited per quarter can be calculated using PMT function in excel. PMT(rate, nper,…

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: What is the present value of end-of-year cashflows of $1,000 per year, with the first cashflow…

A: Present value is the value today of future cash flows discounted to present terms using a specified…

Q: Dr. Anderson plans to make a series of gradient-type withdrawals from her savings account over a…

A: Withdrawals start at end of year 2 Interest Rate = 9% First Withdrawal = 50,000 Annual Increase =…

Q: French Fried Food Inc. wishes to accumulate P500,000 during the next 24 months to open a second…

A: The amount which are paid constantly without any change in amount or frequency is called Annuity and…

Q: $3000 into the fund. If the investments grew at a rate of 8% per year over the 15 years, how much is…

A: Information Provided: Present value = $10,000 Interest rate = 8% Term = 15 years Annual deposit =…

Q: Second Hand Software needs to accumulate $12,000 in 3 years to meet future needs. What sinking fund…

A: Sinking fund is defined as the method of the funds repayment, which borrows by the bond issue by the…

Q: Your RRSP savings of $35,000 are converted to a RRIF at 3.25% compounded monthly that pays $5,100 at…

A: The amount in retirement fund will be depleted after some period of time due to payment and interest…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.