Kenchana Sdn. Bhd. needs $2,100,000 in 3 years. Find the required semiannual payment into a sinking fund if funds are invested in an account earning 10% per year compounded semiannually.
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- 3. Kenchana Sdn. Bhd. needs $2,100,000 in 3 years. Find the required semiannual payment into a sinking fund if funds are invested in an account earning 10% per year compounded semiannually.1. Ikhwan's Sports Store needs RM840,000 in 6 years. If funds are invested in an account earning 8% per year compounded quarterly, prepare the sinking fund table for Ikhwan.1. $1500 is invested semi-annually for 3 years into a fund that pays 6.8% per year, compounded semi- annually. Which are the correct values for PMT, i, and n?
- Using the sinking fund formula or a financial calculator, complete the following: (Do m answer to the nearest cent.) $ Required amount 24,900 Frequency of payment Quarterly Length of time 7 years Interest rate 8 % Payment amount end of each periodA company would like to have $400,000 in 6 years. How much should be invested semiannually into an account paying 3.6% compounded semiannually? 7. Identify the type of problem. a. Present Value with compound interest b. Future Value of an Annuity c. Present Value of an Annuity d. Amortization e. Sinking Fund 8. Answer the question in the problem. a. $30,681.38 b. $29,754.02. c. $34,245.54 d. $30,160.79 c. $28,541.465. A debt of $250,000 is to be repaid after 5 years. If the interest is charged at 5% compounded semi-annually, a sinking fund is created at a rate of 6% compounded semi-annually. Find: a) the semi-annual cost by the sinking fund method; b) the semi-annual cost by amortization; c) Did the borrower made the right decision in setting up a sinking fund? Justify your answer.
- Your company estimates it will have to replace a piece of requirement at a cost of $800,000 in 5 years. To do this a sinking fund is established by making equal monthly payments into an account paying 6.6% compounded monthly. How much should each payment be? Show solution.determine the size of the payments that must be made to a sinking fund in order to accumulate $233,188 if the interest rate is 5.25% compounded quarterly and payments are made for 7 1/4 years. Use TVM solver13. hat Corp. establishing a fund where they pay $200 annually (ie. every year) into the fund. The interest rate thst the fund earns is an annual rate of 6%. What will be the balance of the fund at the end of the 5 years? Round to the nearest dollar. please also explain that formula(s) you used and variable inputs.
- A company wants to save GH¢100000 over the next 5 years so that they can expand theirplant facility. How much must be deposited at the end of each year if their money earnsinterest at j1 = 6%? Construct a complete sinking-fund schedule.Use the sinking fund formula shown to the right to determine the semiannual payments with 6% interest are compounded semiannually for 4 years to accumulate $17,000. p=Arn1+rnnt−1 The semiannual invested payment is $6. A company wishes to borrow $7500 000 for 8 years. One source will lend the money at j2 = 9% if it is amortized by semi-annual payments. A second source will lend the money at j2 returned in a lump sum at the end of 5 years. If the second source is used, in order to pay back thel principal, a sinking fund will be established by semi-annual deposits that accumulate at j2 = 3.9%. = 7.6% if only the interest is paid semi-annually and the principal is (a) What is the semi-annual cost under the amortization plan? (b) What is the semi-annual cost under the sinking fund plan? (c) Which plan should the company choose, and how much can they save semi- annually by using the better plan?