A business must raise $50,000 in 9 years. What should be the size of the owners' quarterly payment to a sinking fund paying 4% compounded quarterly? (Round your answer to the nearest cent.) 24

Q: How much money would have to be deposited today to accumulate:

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: 5. A company is trying to consider buying an equipment with an initial cost of $80,000. The salvage…

A: The question is related to Time value of money. The details are given.

Q: Select the best answer for the question. 20. You want to invest money for three years in an account…

A: The objective of this question is to find out the present value of an investment that will grow to…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: If $10,000 is invested in a certain business at the start of the year, the investor will receive…

A: Computation of present value:Hence, the present value is $1,151.30.

Q: 2. What sum should be invested at the beginning of each quarter, at 16% compounded   quarterly in…

A: Amount required (FV) = )25,000.00 Number of quarterly payments (n) = 40 (i.e. 10 years * 4)…

Q: If you invest $18,000 at 6% interest, how much will you have in 15 years? Use Appendix A to…

A: Future value is a value of an investment or asset on a specific date in the future based on its…

Q: How much money would have to be deposited every quarter if acompany wants to have 75,000 at the end…

A: The present value of annuity with continuous compounding can be calculated using this formula,

Q: If you deposit RM15,000 in an account earning 12%, how much would you have in the amount after 15…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: Suppose that you deposit $200 at the end of each month into an account paying an expected annual…

A: given, monthly compounding N    =10 x 12 = 120I    =3%12PV   =0PMT =200   FV    = need to find

Q: Your company estimates it will have to replace a piece of equipment at a cost of P5,800,000 in 5…

A: Given information: Future cost of equipment amounted to P5,800,000 Number of years is 5 Interest…

Q: Suppose you have an account that will grow to $381,000.00 in 15 years. It grows at 3% annual…

A: The annuity refers to a payment series that provides the holder with a periodic payment in exchange…

Q: Calculate the time necessary to achieve an investment goal. Give your answer to the nearest day. Use…

A: Introduction: The time period or the number of years (NPER) refers to the time it would require for…

Q: What is the present value of a $120,000 cash flow to be received at the beginning of each of the…

A: Amount  of Cash flow = $120000 at the beginning of the year Years(n) = 20 Annual rate(r) = 9%…

Q: 1) The buyer of a lot pays ₽10,000 every month for 10 years. If the money is 8% compounded annually,…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: ou want to have $1,970,000 at the end of 22 years. You have $6,000 to invest now, and you will…

A: Future value includes the amount of deposits made and the amount of compounding interest accumulated…

Q: A company estimates that it will need $114,000 in 11 years to replace a computer. If it establishes…

A: Futute Value of annuity = P * [ {(1 +r)n -1} / r ] Where P = Periodic payment N =time period r =…

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: What is the IRR of the following project?   Invest $1000 in a new machine today that will generate…

A: The term IRR stands for internal rate of return, and it is the rate at which the net present value…

Q: How much money must be deposited at the end of each quarter if the objective is to accumulate…

A: Working note:

Q: How much will $200,000 deposited in an investment account earning an annual interest rate of 8½% be…

A: Given information: Present value $200,000 Annual interest rate is 8.5% Number of years is 1

Q: Suppose you inherited Php275,000 and invested it at 8.25% per year. How much could you withdraw at…

A: PRESENT VALUE Present Value is the current value of Future Sum of Money. Present Value = Future…

Q: If you invest $10,000 today for 8 years, how much will the original investment be worth if…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: You wish to have an annual cash inflow of $48,000 at the end of each of 6 years. How much must you…

A: Cashflow(PMT) $48,000  Time (n) = 6 years  Rate (r) = 4%

Q: If you invest $56,000 today in an account that pays 8.3% a year, how much will you have in 31 years?…

A: Present Value, PV = $56,000 Interest rate, r = 8.3% Number of periods, n = 31 yearsThe future value…

Q: What will $248,000 grow to be in 12 years if it is invested today in an account with an annual…

A: Future Value = P(1+r/n)^ntWhere P = Principal = $248,000R = Rate on interest = 15%N = number of…

Q: 3. What amount of money invested today at an interest of 14.22% compounded quarterly can provide the…

A: STEP 1 The net amount of cash and cash equivalents coming into and going out of a business is…

Q: Suppose you have an account that will grow to $253,000.00 in 25 years. It grows at 7.5% annual…

A: Future value is the value of future cash flow at a certain period after applying a discount rate,…

Q: Suppose you loaned P200,000 from a local bank to be paid back uniformly in five years. How much will…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Your company estimates it will have to replace a piece of requirement at a cost of $800,000 in 5…

A: Sinking fund is a dedicated fund set to fund a future liability by depositing small amounts…

Q: What nine-year annuity cash flow (i.e., annual cash flows for 9 years) will generate a 5.0% return…

A: PV is the present value (initial investment): $17,000.C is the annual cash flow of the annuity (what…

Q: Suppose that $30,000 is invested at 9% interest. Find the amount of money in the account after 7…

A: Future value of money is amount being deposited and amount of compounded interest accumulated over…

Q: 17. Four Seasons Pools needs $115,000 in 3 years. Find the required quarterly payment into a sinking…

A: Sinking Fund-  A fund that is created for special purposes with regular payment over a specified…

Q: A person has $80 000 in a savings account that earns interest at 7% per year, compounded annually.…

A: We can use the concept of time value of money here. As per the concept of time value of money we…

Q: If you want to withdraw $20,000 at the end of two years and $55,000 at the end of four years, how…

A: Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based…

Q: . How long will it take to accumulate P5,000 to P7,000 if interest rate is 6% compounded quarterly?

A: Honor code: Since you have asked multiple questions, we will solve the first question for you. If…

Q: Problem #1. You invested $150 at the end of every month for 10 years at 7% interest compounded…

A: Monthly Investment (C) = $150 Monthly interest rate (r) = 0.00583333333333333 (i.e. 0.07 / 12)…