The Island Corporation desires to accumulate funds to retire a P200,000 bond issue at the end of 15 years. Funds set aside for this purpose can be invested to yield 8%. What annual payment, starting immediately, would provide the needed funds?

Q: Find the interest rate needed for the sinking fund to reach the required amount. Assume that the…

A: We need to use RATE function in excel to calculate interest rate. The formula is…

Q: A company sold $250,000 bonds and set up a sinking fund that was earning 8% compounded semi-annually…

A: Sinking fund refers to a fund started by the company which saves or set aside some fund or money…

Q: Maju City issued a RM700,500.00 face vale bond with four years until maturity. It will make…

A: Periodic deposit for sinking fund can be calculated by annuity from future value formula in excel…

Q: Manatee Corporation wants to withdraw $500,000 (including principal) from an investment fund at the…

A: Present Value Given a certain rate of return, the present value (PV) of a future amount of money or…

Q: An enterprise needs to set aside a fund to meet the following future annuity payments to an…

A: The payments are made at the beginning of each year. Therefore, there is an annuity due. The present…

Q: On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,000 by September 1, year 5.…

A: Amount to be accumulated = P1000000 Number of deposits (n) = 4 r = 10% Let the annual deposit = A

Q: What is the amount of the required annual deposit?

A: Here we have been give the following information              Funds required at the end of January…

Q: Bramble Corporation, having recently issued a $20,094,900, 15-year bond issue, is committed to make…

A: The question is based on the concept Annuity

Q: The company has made an investment in government bonds. The bonds will generate an interest income…

A:

Q: 4. A sinking fund amounting to $15,000 is to be created by making payments at the beginning of every…

A: Sinking fund (SF) is a type of account which is created to accumulate the required amount after a…

Q: A corporation creates a sinking fund in order to have $570,000 to replace some machinery in 8 years.…

A: The sinking fund is the expected fund requirement that might be required in the future by the…

Q: Mark deposit $1,000,000 in a fund today, the conditions for payment to Mark are a fixed amount for…

A: using excel Goal seek to find out the fixed amount

Q: Culver Corporation, having recently issued a $20,062,200, 15-year bond issue, is committed to make…

A: Annual payment (C) = $620,000 Rate of return (r) = 0.10 Period (n) = 15 Years Future value of…

Q: Carla Vista Company has decided to begin accumulating a fund for plant expansion. The company…

A: Years = 5 years (2018, 2019, 2020, 2021, and 2022)Present value = $93,000 Annual payments (for 5…

Q: The company has made an investment in government bonds. The bonds will generate an interest income…

A: Government bonds are those bonds which are issued by the governments of a country. It can be issued…

Q: Required 1: What is the present value of the additional payments to be made to the pension fund? $[…

A: "As you have asked questions with subparts more than 3; According to honoring guidelines answers for…

Q: A debt of $1500 bearing at 12% compounded annually is to be discharged by the sinking fund method.…

A:

Q: After the last financial crisis, a company is obligated to make additional quarterly payments to an…

A: "As you have asked questions with subparts more than 3; According to honoring guidelines answers for…

Q: o raise funds for improvements by issuing 51⁄2 % bonds. There is P 20,000 available per year for…

A: Price of bond is the present value of annual interest payments and present value of redemption value…

Q: A corporation creates a sinking fund in order to have $440,000 to replace some machinery in 8 years.…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: 124 0.4950495 0.4926108 0.4901961 0.4854369 0.4807692 0221 0.3267547 0.3235304 0.3203485 0.3141098…

A: We have to find out future value FACTOR of annuity and find out quarterly payment.

Q: A company sold $200,000 bonds and set up a sinking fund that was earning 8.5% compounded…

A: A bond refers to an instrument that shows loan amount with interest rates made by an investor to a…

Q: A state agency issues $575 million in bonds to repair bridges in the state. The state establishes a…

A: The quarterly deposit in sinking fund forms the annuity. We can compute the future value of annuity…

Q: Sarasota Corporation, having recently issued a $20,134,100, 15-year bond issue, is committed to make…

A: Sinking Fund refers to amount which is set aside from profits to meet future known liability. It…

Q: Bob Smith borrowed $800,000 on Jan 1, 2022. This amount, plus accrued interest at 12% compounded…

A: We have the amount borrowed ,rate of interest and term after whcih the same needs to  be reapid. We…

Q: The city isrequired to make regular payments every 3 months into a sinking fund paying 5.4%…

A: A)The interest rate is 5.4% compounded quarterly.There would be 40 quarters in 10 years.The cost of…

Q: Visano

A: Annuity refers to the series of payments made at an equal set of intervals.Annuity due refers to the…

Q: On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,00 by September 1, year 5.…

A: When an equal amount is paid every period at the beginning of each period, it is called as an…

Q: A corporation creates a sinking fund in order to have $520,000 to replace some machinery in 11…

A: A sinking fund is created to replace an existing machine. Future value of the sinking fund (FV) =…

Q: A corporation creates a sinking fund in order to have $500,000 to replace some machinery in 9 years.…

A: The ROI is the return on an investment expressed as a yearly percentage known as a stated annual…

Q: A city has issued bonds to finance a new convention center. The bonds have a total face value of…

A: Consider the following formula for sinking fund, R = Ai/ (1+i)n-1 Here R is the amount of each…

Q: The management of a corporation anticipates a capital expenditure of $400,000 in 5 years for the…

A: Sinking funds are required to purchase large equipments in future and these are easy to pay and…

Q: A company plans to make four annual deposits of $4,250 each to a special building fund. The fund's…

A: Accumulated value refers to an amount that is the addition of periodic deposits and interest rate…

Q: Find the interest rate needed for the sinking fund to reach the required amount. Assume that the…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Consider an amount of 25,000 in a fund today. October 25, 2022. DETERMINE ITS value on the specified…

A: Future Value = Present Value (1 + r)n where r = periodic interest rate = 3.42% n =time period =…

Q: On January 1, 2025, Carla Vista Company decided to begin accumulating a fund for asset replacement…

A: The balance in the fund January 1, 2030 would be future value of an annual deposit at 8% discount…

Q: Coronado Corporation, having recently issued a $ 20,153,400, 15-year bond issue, is committed to…

A: The question is based on the concept of Financial Management.

Q: A corporation creates a sinking fund in order to have $910,000 to replace some machinery in 9 years.…

A: Future value is the estimated value of current assets that is discounted  at an assumed rate of…

Q: Find the interest rate needed for the sinking fund to reach the required amount. Assume that the…

A: An amount of money set aside by an organization (such a government or business) specifically for the…

Characteristics of Bonds