1. Alice has a Php660,000.00 debt that is need to be repaid at the end of 5 years. The debtor establishes a sinking fund that earns 18% interest compounded quarterly. Construct a sinking fund schedule.

1. Alice has a Php660,000.00 debt that is need to be repaid at the end of 5 years. The debtor establishes a sinking fund that earns 18% interest compounded quarterly. Construct a sinking fund schedule.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Characteristics of Bonds

Question

Constructing schedule

1. Alice has a Php660,000.00 debt that is
need to be repaid at the end of 5 years. The
debtor establishes a sinking fund that earns
18% interest compounded quarterly.
Construct a sinking fund schedule.

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Find 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
James has a Php225,000.00 debt that is need to be repaid at the end of 2 years . The debtor establishes a sinking fund that earns 12% interest compounded quarterly. Construct a sinking fund schedule.
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