Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- A sum of 50,000 deposited in a fund which will earn 12% compound semiannualy for the first 5 years and 8% interest compounded quarterly for the next 7 years. How much will be the amount after 12 years.arrow_forwardFind 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. $21,563 to be accumulated in 5 years; quarterly payments of $900 The interest rate needed is approximately%. (Type an integer or decimal rounded to two decimal places as needed.)arrow_forwardCreate a complete sinking fund schedule and calculate the total payments and interest earned needed for a fund of $9,000 one year from now. The fund will receive deposits made at the end of every three months and earns 5% compounded quarterly. Payment Number 1 2 3 4 Total Payment Amout at End ($) (PMT) Number Number Number Number Total PMT = Number Interest Earned or Accrued ($) (INT) Number Number Number Number Total INT Number Principal Balance Accumulated at End of Payment Interval ($) (BAL) Number Number Number Numberarrow_forward
- Solve by using the sinking fund or amortization formula. (Round your answer to the nearest cent.) Sinking fund payment (in $) Sinking FundPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Value(Objective) $ every 3 months 4 6.0 quarterly $7,000arrow_forwardK Find the amount of each payment into a sinking fund if $14,000 must be accumulated Payments are made at the end of each quarter for 3 years, with interest of 6% compounded quarterly Round to the nearest cent Click here to view part 1 of the Sinking Fund table. Click here to view part 2 of the Sinking Fund table. OA. $829.92 OB. $4,597 32 OC. $1,180.06 OD. $1,073.52arrow_forwardFind the periodic payment for each sinking fund that is needed to accumulate the given sum under the given conditions. (Round your answer to the nearest cent.) FV = $1,900,000, r = 9%, compounded monthly for 25 yearsarrow_forward
- Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly and produces $49,000 at the end of 4.5 years. Payments are made at the end of each period. The payment size is $ . (Round to the nearest cent.)arrow_forwardBright Inc. will be receiving $5,500 at the end of every month for the next 2 years. If these payments were directly invested into a fund earning 6.00% compounded semi-annually, what would be the future value of the fund at the end of 2 years? Round to the nearest centarrow_forwardCalculate the future value of end-of-month payments of $4,000 made for 7 years into an investment fund that earns 5.50% compounded quarterly.arrow_forward
- Find 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.)arrow_forward8. Deposits of 1000 are placed into a fund at the end of each year for the next 25 years for the subsequent purchase of a perpetuity. Five years after the last deposit, annual payments commence and continue forever. If i = .09 then find the amount of each payment.arrow_forwardUse the sinking fund formula shown to the right to determine the monthly payment needed to accumulate $400,000 with 7% interest are compounded monthly for 29 years. The monthly invested payment is $arrow_forward
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