Denver University Copy Center buys three copier machines that each have a useful life of seven years and a salvage value of $1000/copier machine. A sinking fund is established to replace all the machines at the end of 7 years. The replacement cost will be $6,000/copier machine. If equal payments are made into the fund at the end of every 6 months and the fund earns interest at the rate of 12% compounded semiannually, what should each payment be?

A student will receive a $25,000 grant at the beginning of every year for the next five years. Assuming an annual interest rate of 4% is appropriate, the present value of an ordinary annuity is 4.4518 x $25,000 = $111,295, and the present value of an annuity due is 4.6299 x $25,000 = $115,748. What is the fair value of the grant payments according to the Financial Accounting Standards Board (FASB)? $130,000 $115,748 $125,000 $111,295

Jackson Clinic is starting an endowment fund to pay for the expenses of a allied health training program.  The expenses are $2,500,000 per year, and the program needs to be endowed for 50 years.  Assuming payments are made at the end of each year and the interest rate is 7% per year, what should be the initial size of the endowment?

A contractor’s price for a new building was $96,000.  You decide to buy the building, making a payment of $12,000 down and financing the balance by making equal payments at the end of every 6 months for 12 years.  Interest is 7.3% compounded semi-annually. B) For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance at the end of first installment?     how much interest is paid      how much of the principal is repaid     what is the loan balance?   C) For the fifteen payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance at the end of first installment?   how much interest is paid      how much of the principal is repaid     what is the loan balance?

Lucky Strike, a bowling alley, purchased new equipment from Brunswick in the amount of $850,000. Brunswick is allowing Luck Strike me to amortize the cost of the equipment with monthly payments over 2 years at 12% interest. What equal monthly payment will be required to amortize this loan?

An investment of 1000 is to be used to make payments of 100 at the end of every year for as long as possible. If the fund earns an annual effective rate of interest of 6%, find how many regular payments can be made. Also, find the amount of the smaller payment to be paid on the date of the last regular payment to be paid one year after the last regular payment

Dog Care Co. wants to finance a new animal shelter by making eight annual deposits into a fund earning 11​% compounded annually. The first four deposits are to be $19,000 each and will be paid at the beginning of the next four years. The last four deposits are to be $27,000 each and will be paid at the beginning of the last four years.   The cost of the new animal shelter amounts to:

HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of ​$55,000. To pay for the​ replacement, a sinking fund has been established into which equal payments are made at the end of every quarter. Interest is 7.5​% quarterly.   ​(a) What is the size of the periodic​ payment? ​(b) What is the accumulated balance just after the 32th ​payment?

Torbet Fish Packing Company wants to accumulate enough money over the next 12 years to pay for the expected replacement of its digitalized, automated scaling machine. The new machine is expected to cost $240,000 in 12 years. Torbet currently has $15,000 that it plans to invest over the next 12 years to help pay for the new machine. Torbet wants to put away an equal, end-of-year amount into a sinking fund investment account at the end of each of the next 12 years. Earnings on all of the investments are expected to be 8 percent for the first six years and 10 percent thereafter. What equal, end-of-year amount must Torbet save each year over the next 12 years to meet these needs? Use Table I and Table III or a financial calculator to answer the question. Round your answer to the nearest dollar.

We are funding an organization for ten years. The first payment will be made one year from today (end of year one) and will be $8,350. Each year after that, the organization will receive payment from us annually. The payment will increase at a rate of 2% per year after the second payment. If the annual interest rate is 15%, what is the present value of this endowment?