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.)

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.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Compute the amount that can be borrowed under each of the following circumstances: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.) 1. A promise to repay $99,000 ten years from now at an interest rate of 7%. 2. An agreement to make three separate annual payments of $20,000, with the first payment occurring 1 year from now. The annual interest rate is 5%. Option 1 Loan amount Option 2 payments Table Value Table Value Amount Amount $ Present Value Present Value 0
For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity). (Round your answer to the nearest cent.) Sinking Fund Payment $ 27658 x Payment Frequency every year Time Period (years) 14 Interest Nominal Rate (%) Compounded annually 8 Future Value (Objective) $750,000
Using the sinking fund Table 13.3, complete the following: (Do not round intermediate calculations. Round your answer to the nearest cent.) Frequency of payment Payment amount end of each Required Interest Length of time amount rate period 24,700 Quarterly 5 years 8% acer %24
Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer to the nearest cent.)$ Amount Needed A Frequency n Rate r Time t $45,000 monthly 8% 35 yr
Use the sinking fund formula shown to the right to determine the semiannual payments with 8% interest are compounded semiannually for 4 years to accumulate $24,000.
The following is a sinking fund schedule (depicted below) for a loan of $3000 repaid over four years with an annual effective interest rate of 4%. Please find the value of A, B, C, and D
Use 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 $
Find 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 = $1,500,000, r = 4.7%, compounded semiannually for 25 years
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Use the sinking fund formula shown to the right to determine the monthly payment needed to accumulate $560,000 with 9% interest are compounded monthly for 31 years. p=Arn1+rnnt−1 The monthly invested payment is $
Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer to the nearest cent.)$ Amount Needed A Frequency n Rate r Time t $45,000 monthly 9% 20 yr
You are given: i. Fund X accumulates at an interest rate of 8% compounded quarterly. ii. Fund Y accumulates at an interest rate of 6% compounded semiannually. iii. At the end of 10 years, the total amount in the two funds combined to $1000. iv. At the end of 5 years, the amount in Fund X is twice that in Fund Y. Calculate the total amount in the two funds at the end of 2 years.

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