A business must raise $90,000 in 6 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.)
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A business must raise $90,000 in 6 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.)
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- Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?A business must raise $57,000 in five years. What should be the size of the owners quarterly payment to a sinking fund paying 8% compounded quarterly?A business must raise $70,000 in 5 years. What should be the size of the owners' quarterly payment to a sinking fund paying 3% compounded quarterly? (Round your answer to the nearest cent.) $ Need Help? Read It
- business must raise $50,000 in 9 years. What should the size of the owners’ quarterly payments to a sinking fund paying 2% interest compounded quarterly.A business sets up a sinking fund so they will have a $49,000.00 to pay for a replacement piece of equipment in 7 years when the current equipment will be sold for scrap. If they make deposits at the end of each month for 7 years in the investment that pays 7.4% compounded monthly, what size should each payment be?An investor pays $275,000 for a mine that will produce level annual revenue for 18 years. What should the level annual revenue be (received at the end of each year) if the investor is to receive 4% annual return on the investment while recovering the principal in a sinking fund earning 2.5% per year?
- 6. A company wishes to spend P40,000 for a new office copier and decides to set up a sinking fund to accumulate this money over a 3-year period. If payments are to be made to the fund quarterly, with interest compounded quarterly at an annual rate of 5%, how large should the payments be? 7. How much must Brix place in his account at the end of each month in order to have P125,000 at the end of 4 years, if money is worth 6% compounded monthly?Suppose an individual makes an initial investment of $2,000 in an account that earns 6%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to $0). (Round your answers to the nearest cent.) (a) How much is in the account after the last deposit is made?$ (b) How much was deposited?$ (c) What is the amount of each withdrawal?$ (d) What is the total amount withdrawn?$Suppose an individual makes an initial investment of $1,400 in an account that earns 7.0%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to 50). (Round your answers to the nearest cent) (a) How much is in the account after the last deposit is made? (b) How much was deposited? 1 (e) What is the amount of each withdrawal? (0) What is the total amount withdrawn? - 3 Need Help?
- A business sets up a sinking fund so they will have a $68,000.00 to pay for a replacement piece of equipment in 12 years when the current equipment will be sold for scrap. If they make deposits at the end of each quarter for 12 years in the investment that pays 6.3% compounded quarterly, what size should each payment be? Answer: The quarterly payments are $. (Round to the nearest cent/penny)How much must be deposited at the beginning of each year in an account that pays 6%, compounded annually, so that the account will contain $40,000 at the end of 5 years? (Round your answer to the nearest cent.) Need Help? Read It Watch ItHow much must be deposited at the beginning of each year in an account that pays 5%, compounded annually, so that the account will contain $32,000 at the end of 3 years? (Round your answer to the nearest cent.)