Cooper & Cooper Development Company plans to raise S125,000 over a 3-year period so they can purchase a parcel of land. In order to obtain this amount, the company has decided to make quarterly investments into a sinking fund that will earn 8% per year compounded quarterly for the next 3 years. Using the sinking fund table, calculate the amount of each quarterly sinking fund payment required to raise S125,000 in 3 years.
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![Cooper & Cooper Development Company plans to raise S125,000 over a 3-year period so they can purchase a parcel of land. In order to obtain this amount, the
company has decided to make quarterly investments into a sinking fund that will earn 8% per year compounded quarterly for the next 3 years. Using the
: 3
sinking fund table, calculate the amount of each quarterly sinking fund payment required to raise $125,000 in 3 years.
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- XYZ plans to construct an additional building at the end of 10 years for an estimated cost of P5,000,000.00. To accumulate this amount, it will make equal year-end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building than originally intended to an estimated cost of P8,000,000.00 What should be the annual deposit for the last five years? Please provide CASH FLOW diagram. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.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?Starr Company decides to establish a fund that it will use 4 years from now to replace an aging production facility. The company will make a $109,000 initial contribution to the fund and plans to make quarterly contributions of $50,000 beginning in three months. The fund earns 12%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar.)What will be the value of the fund 4 years from now? Table Values are Based on: n = i = Present Value Table Factor Future Value Initial Investment Periodic Investments Future Value of Fund
- 13. hat Corp. establishing a fund where they pay $200 annually (ie. every year) into the fund. The interest rate thst the fund earns is an annual rate of 6%. What will be the balance of the fund at the end of the 5 years? Round to the nearest dollar. please also explain that formula(s) you used and variable inputs.3. Kenchana Sdn. Bhd. needs $2,100,000 in 3 years. Find the required semiannual payment into a sinking fund if funds are invested in an account earning 10% per year compounded semiannually.Oriole Enterprises would like to have $970,000 saved up in 12 years to fund equipment and building upgrades. If Oriole invests $183,000 today and commits to depositing $53,100 at the end of each of the next 12 years, what annual interest rate must the fund earn to reach $970,000? (Do not round intermediate calculations. Round final answer to 2 decimal places, e.g. 15.25%.) Annual interest rate 2 %
- Cargojet Corp. is preparing for the replacement of one of its jets in three years by making payments to a sinking fund at the beginning of every six months for the next three years. The fund earns 6% compounded semiannually, and the capital required in three years is $750,000. What is the size of the semiannual payment made to the sinking fund? __________ How much of the maturity value of the fund will be interest? __________ Construct a partial sinking fund schedule showing details of the first two and the last two payments and totals. Round the sinking fund payments, interest payments and increases in the fund to the nearest dollar.4. Luxury Yacht company is preparing to buy a new yacht estimated to cost $750000 by making equal payments at the end of every three months into a sinking fund for six years. Interest earned by the fund is 7.5% compounded quarterly. 3 (a) What is the size of the quarterly payment made to the sinking fund? (b) How much of the maturity value of the fund will be interest? (c) What is the accumulated value of the fund after two years? (d) How much interest will the fund earn in the 15th payment interval?A consultant advises that a fund pays out $100,000 at the end of 5 years. Provided $12,000 is invested in the fund at the start of each year, beginning immediately and continuing up to and including the investment at the start of year 5, what is the annual interest on this investment? What would be the equivalent uniform annual amount if the money was invested at the end of each year instead of the beginning? Clearly show your working methods and calculations.
- A company wants to save GH¢100000 over the next 5 years so that they can expand theirplant facility. How much must be deposited at the end of each year if their money earnsinterest at j1 = 6%? Construct a complete sinking-fund schedule.MetaYou have accumulated $8,000 toward the down payment on a piece of lake front property in rural Minnesota. You wish to accumulate a total of $12,000 (i.e. an additional $4,000) for the down payment in four years. If you choose not to contribute more new funds to your down payment fund, what rate of return must your fund earn to reach your objective in the specified time? Assume that your investment fund compounds annually. Question 7Select one: a . 10.67% per year b. 50.00% per year c. 12.50% per year d. There is not enough information to answer this question.A company wishes to spend $40,000 for new equipment and decides to set up a sinking fund to accumulate this money over the 3-year period. If payments are to made to the fund quarterly with interest compounded quarterly at an annual rate of 5%, how large should the payments be?