7. A fund is established by depositing P30,000 every beginning of 3 months for 2 years. If money is worth 12% compounded quarterly, find the amount of the fund after the last deposit is made.
Q: 5. A fund of P3,000,000 needs to be available after 10 years. How much deposit should be made every…
A: Future value required (FV) = P3,000,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50%…
Q: In order to accumulate $1,000,000 after 35 years, calculate the amounts that must be invested at the…
A: Computation:
Q: At the beginning of each month, P 200 is deposited into a retirement fund. The fund earns 6%…
A: An annuity is a series of equal payments made or received at regular intervals. When the cash flows…
Q: QUESTION 1 What is the amount of the periodic payment made at the beginning of every month into a…
A: A periodic payment is an equal series of payments made by the investor or borrower. It includes…
Q: a.) How much money must be invested at the end of each quarter for 25 years in a sinking fund that…
A: Here, Future value is 'FV' Present value or investment amount is 'P' Nominal interest rate is 'r'…
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: The sum of $159,760 is invested at 5.5% compounded monthly for four years. After the four years, the…
A: The present value of annuity refers to the current value of future annuity payments to be paid at a…
Q: A fund of 25000 is to be accumulated by means of deposits of 1000 at the beginning of every year as…
A: Deposits are being done to get a lump-sum return on the periodic amount that has been invested.…
Q: PROBLEM: Annual deposits were made in a fund earning 10% per annum. The first deposit was P2,000 and…
A: Number of annual deposits = 6 First deposit amount = P2,000 Annual decrease in deposit amount = P…
Q: P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the…
A: Semi annual deposit = P = P240,000 Interest rate = 11% Semi annual interest rate (r) = 11%/2 = 5.50%…
Q: $150,000 is deposited in a fund that pays 5% annual compound interest for 2 years, 3% annual…
A: There are two methods of charging interest on loans. One is the simple interest method and other is…
Q: find the size of each 4 payments made at the end of each year into a 9% rate sinking fund which…
A: Future value (FV) = 63000 Interest rate (r) = 9% Number of annual payments (n) = 4
Q: Use the sinking fund formula shown to the right to determine the monthly payment needed to…
A: A sinking fund can be referred to as a type of fund specially created to pay off the debts.…
Q: payments
A: As the payments are made at the end of the year, this is an ordinary annuity. Hence the future value…
Q: Annual deposits were made in a fund earning 10% per annum. The first deposit was Php 20,000 and each…
A: Compounding is a method of charging interest in which Interest is charged on the amount including…
Q: John made a deposit of 4400 into a fund ot the þeginning of each year for 16 years. At the end of 16…
A: FV of annuity = Payment * (1+i)n-1i
Q: A fund is being formed by monthly deposit of P2,000 at 6% compounded monthly a) Find the amount…
A: future value of annuity=A×1+rmm×n-1rmwhere,A=monthly depositr=rate of interestm=frequency of…
Q: Your company has decided to set up a fund for its employees with an initial payment of Rs 27,500…
A: a.Calculate the size of the fund as follows:
Q: A manufacturing firm sets aside P50,000 at the end of each year for 5 years in a sinking fund…
A: Annual deposit = P 50,000 Period = 5 Years Annual interest rate = 12%
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: Urgently need. An engineer wishes to set up a special fund by making uniform semiannual…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: 3. Kenchana Sdn. Bhd. needs $2,100,000 in 3 years. Find the required semiannual payment into a…
A: Future value required (FV) = $ 2,100,000 Period = 3 Years Number of semi annual payments (n) = 3*2 =…
Q: Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly…
A: End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…
Q: Save The Simpson Company invested $20000 in a fund that was earning interest at a rate of 5%…
A: Given data, Investment p = $20000 Rate of interest r = 5%= 0.05 compounded semi annually, so, n=2…
Q: . What is the present worth of 4100 deposited at the end of every three months for 5years if the…
A: The future value is the amount deposited and interest accumulated over the period of time. The…
Q: A sum of 50,000 deposited in a fund which will earn 12% compound semiannualy for the first 5 years…
A: Computation of the amount that will be received after 12 years is shown below:
Q: Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposit…
A: The time value of money is the idea that the value of money received today will be more worthy than…
Q: Calculate the future value of end-of-month payments of $500 made for 4 years into an investment fund…
A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…
Q: Francis deposits P 100,000 into a fund today and P 200,000 fifteen years later. Interest is credited…
A: Deposit today (D0) = P 100000 Deposit after 15 years (D1) = P 200000 Discount rate for first 10…
Q: What sinking fund payment is required at the end of each 6-month period, at 6% interest compounded…
A: Payment required at end of each 6-year period can be calculated as: = Future Value / Future value of…
Q: 1. Bomac Steel sets aside $5000 at the beginning of every six months in a fund to replace equipment.…
A: Compuattion:
Q: A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every…
A: Sinking fund can be defined as the fund which has been established for the purpose of accumulating…
Q: Kenchana Sdn. Bhd. needs $2,100,000 in 3 years. Find the required semiannual payment into a sinking…
A: Business use sinking funds to accumulate funds to purchase new equipment or to meet other expensive…
Q: Dobsen Door Manufacturer s sets up sinking fund to raise $75000 to pay off the maturity value of a…
A: Sinking fund can be defined as a fund which help an investor to accumulate a targeted amount of fund…
Q: If annual deposits of $1,000 are made into a fund paying 12% interest compounded annually, how much…
A: Present Value of deposits (PV)=$1,000 Interest Rate (r)= 12% compounded annually Time period (n)= 5…
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: Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year,…
A: The future value is computed by multiplying the present money by the future value annuity factor. In…
Q: How much must be deposited today into the following account in order to have a $135,000 college fund…
A: the question is based on the concept of Future value
Q: Jones Assoc. borrowed $40,000. The company plans to set up a sinking fund that will pay back the…
A: Given information: Amount borrowed : $40,000 time period : 8 years rate of interest : 12%…
Q: Use the sinking fund formula shown to the right to determine the monthly payment needed to…
A: A Sinking fund refers to a fund that is kept aside or borrowed in order to pay off a debt or a loan.…
Q: Find the AV of these deposits
A: Time value of money (TVM) means that the amount received in the present period will have more…
Q: 240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the…
A: Here the concept of annuity will apply. This is the case of an annuity due as the payments are made…
Q: Red Company invested $20,000 in a fund that was earning interest at a rate of 3.00% compounded…
A: Answer a:- The future value of an investment is calculated using the following formula:- Future…
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: Find the size of each of 8 payments made at the end of each year into a 9% rate sinking fund which…
A: Formula FVA = P*((1+i)n-1)/i Where FVA - Future value of annuity i.e. 55000 P - Annual payment i -…
Q: in order to have a fund of 1,000,000 at the end of 12 years, equal deposits every six months must be…
A: Future value of sequence of periodic payments consists of payments made and interest accumulated…
Q: At the beginning of each year, you deposit the following into a growthmutual fund that earns 6…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
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- If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?If $100 is deposited in a fund at the beginning of each 3 months for 8 years and the money is invested at 5% compounded quarterly, how much is the fund (a) at the end of 7 3/4 years just after the payment due then is made (b) at the end of 8 years?A fund is being formed by monthly deposit of P2,000 at 6% compounded monthly a) Find the amount after a year b) What is the amount in the fund just after the 5 deposit? c) Construct the sinking fund schedule for a 5 month period.
- Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to accumulate $66,000 over 6 years. Payments are made at the end of each period. The payment size is $ (Round to the nearest cent.)Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly and produces $44,000 at the end of 3.5 years. Payments are made at the end of each period. The payment size is $_Deposits of $6000 are put into a fund at the end of each month for the next 9 years. At the end of the 9th year, month payments from the fund commence, and continue forever. If i, = 6.71 %, find the size of these payments. Answer: 4966.24
- 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 yearsYou deposit $600 today into a fund that you intend to leave invested for 6 years. The fund earns 6% interest compounded annually. Indicate the inputs to be entered into the financial calculator keys. What is the value of the fund to be accumulated at the end of year 6? (Round future value answer to two decimal places (e.g., 52.75) and interest rate to one decimal place (e.g., 527.5).) Inputs Calculator N Keys Future value $ 6 I 6 PV 600A 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.
- Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to accumulate $39,000 over 8 years. Payments are made at the end of each period. The payment size is $8. Deposits of 1000 are placed into a fund at the end of each year for the next 25 years for the subsequent purchase of a perpetuity. Five years after the last deposit, annual payments commence and continue forever. If i = .09 then find the amount of each payment.Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly and produces $49,000 at the end of 4.5 years. Payments are made at the end of each period. The payment size is $ . (Round to the nearest cent.)