A community wishes to purchase an existing utility valued at Php 500,000 by selling 5% bonds that will mature in 30 years. The money to retire the bond will be raised by paying equal annual amounts into a sinking fund that will earn 4%. What will be the total annual cost of the bonds until they mature?
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- A community wishes to purchase an existing utility valued at P500,000 by selling 5% bonds that will mature in 30 years. The money to retire the bond will be raised by paying equal annual amounts into a sinking fund that will earn 4%. What will be the total annual cost of the bonds until they mature?What is the monthly payment for a home costing $475,000 with a 20% down payment and the balance financed for 30 years at 6.5%? (a) State the type. A. present valueB. future value C.ordinary annuityD.amortizationEsinking fund (b) Answer the question. (Round your answer to the nearest cent.)What is the future value of $117,000 invested for 5 years at 14% compounded monthly? (a) State the type. present value future value amortization ordinary annuity sinking fund (b) Answer the question. (Round your answer to the nearest cent.)
- What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the type. A. ordinary annuityB. present value C. amortizationD. sinking fundE. future value (b) Answer the question. (Round your answer to the nearest cent.)A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 8 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 6.1% compounded quarterly? (Round your answers to the nearest cent.) $11731.10 x How much interest would they earn over the life of the account? $ 170756.04 X Determine the value of the fund after 2, 4, and 6 years. 2 years $99013.71 X 4 years $210771.88 X 6 years $336914.93 X How much interest was earned during third quarter of the 4th year?A debt of $1500 bearing at 12% compounded annually is to be discharged by the sinking fund method. If six annual deposits are made into a fund which pays 6% compounded monthly. a. Find the annual interest payment b. Find the size of the annual deposit into the sinking fund. c. What is the annual cost of this debt? d. Construct the sinking fund schedule. Period Interest Sinking Fund Interest Deposit earned Sinking Fund Balance Net amount loan
- Classify the financial problem. Assume a 4% interest rate compounded annually. Find the value of a $1,000 certificate in 6 years. A. amortizationB.ordinary annuity C.present valueD. sinking fundE.future value Answer the question. (Round your answer to the nearest cent.)Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to the nearest cent. Weekly payments with a 6.9% interest rate compounded weekly for 45 years to accumulate 400,000Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $29,488 to be accumulated in 5 years; quarterly payments of $1275. %- The interest rate needed is approximately (Type an integer or decimal rounded to two decimal places as needed.)
- Stein and Company has established a sinking fund to retire a bond issue of $700,000, which is due in ten years. How much is the quarterly sinking fund payment if the account pays 16% annual interest compounded quarterly? E Click the icon to view the $1.00 sinking fund payments table. The sinking fund payment is S: (Round to the nearest cent as needed.)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 $64,000. The semiannual invested payment is $PLEASE TYPE IT AND NOT HANDWRITTEN What annual deposit into a sinking fund at 5% compounded annually will be needed to raise half a million pesos at the end of 10 years to settle a loan? What is in the fund at the end of 5 years?