Equal deposits are made into a sinking fund at the end of each year for seven years. Interest is 11.71% compounded annually, and the maturity value of the fund is $23,000. a.) Calculate the size of the annual deposits. b.) Calculate the increase in the fund for the fourth year.
Q: mse have to be renewed? a. June 10, 2022 b. January 1, 2023 on June 10, 2021. c. June 10, 2023 d. It…
A: In insurance there is need of license from the authorities and is to be renewed after certain…
Q: aviar Jones - Is 39 years old. He graduated from Medical School 7 years ago and is finally done with…
A: There is need of planning for the futures so that proper planning will results in good money in the…
Q: Compute the interest paid on a 4-year lease for a $28,842 car if the annual rate of depreciation is…
A: A lease refers to an agreement between two parties known as lessor and the lessee where , the lessor…
Q: Ex) Explain why do we use different Brownian motions for the stock price S(t) and X(t) in the…
A: In the Feynmann-Kac representation formula, Brownian motion is used to model the random evolution of…
Q: According to the CAPM, a stock with a high standard deviation must have a beta ________ that of a…
A: Risk means uncertainty and potential loss for the decision, and because of that, there might be a…
Q: 1 1(a) 1(b) Jonkin plc are considering a project that is susceptible to risk. An initial investment…
A: Net Present value is a method of capital budgeting where we evaluate any project on basis of a…
Q: 5. A bank claims in an advertisement that its certificates of deposit offe a nominal rate of 7.0%…
A: The effective interest rate is the interest rate considering the impact of the compounding effect on…
Q: Real Property/Land ownership includes air rights and subsurface materials. Group of answer choices…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want…
Q: Compare Sweden's H&M and Spain's Inditex/Zara marketshares of their home country marke grow in its…
A: Sweden Market share Spain Market share
Q: Portfolio Expected return beta a 10% 1.1 b 14% 1.4 c 18% 2.0 Portfolios a, b, and c…
A: Expected return The minimum return that an investor expects from his investment is known as the…
Q: Briac Steel sets aside $4900.00 at the beginning of every six months in a fund to replace equipment.…
A: An annuity is a set of periodic payments made in exchange for a lump sum payment. There are two…
Q: In the Vasicek Model , the short term rate cannot go negative . True False
A: The Vasicek Model is a popular interest rate model used to price financial instruments and to…
Q: Brody borrowed from a bank at 5.06% compounded monthly; he settled the loan by repaying $4,460 at…
A: The interest rate Compounded monthly is 5.06% Monthly payments are $4,460 The time period is 2 years…
Q: I got a real job at a non-profit with benefits and everything else included, I went to a long…
A: The total Time period of Investment is 20 years Option-1: The amount invested per month is $200 The…
Q: 1. In discounted cash flows method, the value of investment opportunities is highly dependent on the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 1. A one year call option has a strike price of 50, expires in 6 months, and has a price of $4.74.…
A: Value of put option is calculated using put call parity equation below p + S = c + X/ert Where, p…
Q: V3. In the Marriott example, one discussion point considered when a firm might use a single hurtle…
A: When a company is looking to make investment decisions, one of the most important considerations is…
Q: Discussion Topic Consumers are often faced with making large purchases to satisfy life's basic…
A: Products are purchased on the credit because buying on credit is very easy and convenient because…
Q: A project has cash flows of –$148,000, $43,000, $87,000, and $44,000 for Years 0 to 3, respectively.…
A: The IRR is the interest rate that makes the NPV of the project equal to zero.
Q: Use the information below to calculate WACC given the Market Capitalization of the company:…
A: Free Cash Flow (FCF) of the firm is calculated using EBIT. Value of a firm is the present value of…
Q: e current yield of a bond goes down from 6.2% to 4.9%, what percent does the market price increase
A: Current yield of bond is the important measures of bond and dopends on the coupon payment and market…
Q: Find the depreciation for the indicated year using MACRS cost-recovery rates for the properties…
A: Depreciation for a 3 year property in the 3rd year = Value of property*Depreciation rate in the 3rd…
Q: The Leonardo Family's got $500,000 mortgage has an amortization period of 25 years. Let's assume…
A: Mortgage refers to the amount borrowed against the purchase of the real estate. Amortization of the…
Q: Yaad Peanut is a company in Jamaica. They produce peanut butter. Each jar sells for $800. the…
A: The break-even point is the point where the revenues are equal to the cost. There is no profit or…
Q: Let's assume you borrowed $2000 from Wells Fargo Bank on July 1. The annual Percentage Rate is 5%.…
A: The periodic payment is payments made to repay the loan or debt. The periodic payment is made at…
Q: A zero-coupon bond has a yield to maturity of 9% and a par value of $1,000. If the bond matures in…
A: Zero coupon bond is a type of Bond which issued at a discount and which will be redeemed at par…
Q: A defined benefit plan has 100 employees with a majority of them over age 40. The pension fund…
A: Defined benefit plan - This is an employer sponsored predetermined pension payment plan. This plan…
Q: 9.) Find the first month of the amortization schedule for a fixed-rate mortgage if the loan amount…
A: A mortgage is a loan that is taken for purchasing a property with the property itself acting as…
Q: Please solve ASAP showing formulas/explanation. Will upvote once done but need help fast. Thank you…
A: 1,000 barrels 3 months
Q: Briefly explain below the different theories about the irrelevance/relevance of exchange rates.…
A: The Exchange Rate Relevance and Irrelevance Theories are two theories that have been developed to…
Q: A strategic investment and only be an investment in the shares of another company. True False
A: A strategic investment refers to an investment in the shares of another company that is aimed at…
Q: Below is the top of the limit order book for Microsoft. An investor wants to buy 200 shares. What…
A: Bid price is the price at which investor wants to purchase the shares and ask price is the price at…
Q: Hedging Foreign Exchange Kisk On November 1, 2022, Ambrose Co. purchased inventory from a customer…
A: Ambrose
Q: NPV = 0 = –$535,000 + 60,000 + $151,080(PVIFAIRR, 5) + [($22,800 – 60,000)/(1 + IRR)5] How to solve…
A: Internal rate of return is the discount rate at which the present value of the future cash flow and…
Q: Assume the CAPM holds. You are holding a portfolio with the beta of 2 and the standard deviation of…
A: We have an inefficient portfolio here. We have to make it efficient and find out the possibility of…
Q: Compute the amount of interest for $331.00 at 9.13% p.a. from August 30, 2006 to December 28, 2006.…
A: Number of days between August 30, 2006 and December 28, 2006 = 120 days Number of days in a year =…
Q: What is the expected return of the following portfolio? Amount Stock Invested A $42,240 B $26,201 C…
A: Expected return of a portfolio is the weighted return. Weight for each Stock is determined and then…
Q: If $3000.00 is invested for seven years and seven months at 6% p.a. compounded quarterly, calculate…
A: The time value of money means today's money value is more than the value of money tomorrow. In the…
Q: K Suppose that the price p (in dollars) and the weekly sales x (in thousands of units) of a certain…
A: The demand and the price of a commodity are negatively correlated as the buyer has a fixed budget.…
Q: The unpaid balance in an account on May 1 was $100 A purchase of $18 was made on May 9 A 505 payment…
A: Computation of average daily balance & finance charge for May 2022 May 1 to May 8 ($169 * 8…
Q: Why Should not the government subsidize home buyers who make less than $120K per year. please…
A: The idea of the government subsidizing home buyers who make less than $120K per year has been…
Q: A machine costs $100,000 and generates $25,000 of pre-tax operating income per year. The tax rate…
A: The NPV of an asset is used to measure its profitability by discounting the future cash flows to…
Q: initiates
A: 1) Holden Manufacturing has a capital structure of 60% equity and 40% debt. Which of these actions…
Q: Veronica takes out a $400,000, 30-year mortgage with an interest rate of 5.0% APR. What is…
A: P = Principal loan amount i.e. $400,000 r = Monthly interest rate i.e. 0.00416666666666667 (0.05 /…
Q: Jason, a bachelor at age 65, has decided to convert the cash value of his life insurance policy into…
A: An annuity is cash flows received or paid at fixed intervals for a fixed period. If the receipt or…
Q: hy dating can be considered a method to solve the adverse selection problem a. You are preventing…
A: In finance the data is very important and having proper and adequate data is very important because…
Q: Constructing and Analyzing Balance Sheet Amounts from Incomplete Data Selected balance sheet…
A: In general term an asset is an economic resource that provide series of income or cash flows over…
Q: Nicholas is 25 years old. He earns $10,000 a year while completing grad school. He does not need any…
A: We have the quantum and timing of the investment. We need to find the accumulated value after a…
Q: If you transmit a market buy order to the stock exchange, will you buy at the bid or the ask? a.…
A: The process of placing a market buy order on a stock exchange: When an investor places a market buy…
Q: would
A: Given interest = 3.75% Per annum,so quarterly = 3.75/4= 0.9375% So the annualised return…
Step by step
Solved in 2 steps with 2 images
- A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the penodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is SFind 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. $21,657 to be accumulated in 4 years; quarterly payments of $1225.Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. $49,000; money earns 4% compounded semiannually for 13.5 years
- A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the penodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is S. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Complete the table, rounding each entry to the nearest cent. (Do not include the $ symbol in your answers.) Periodic Payment Interval Number Payment Interval Interest Increase in Payment (Beginning) Balanye at End of Payment Interval Fund i=5.9% 1 2. 3. 4. Enter your answer in each of the answer boxesA debt of $1500 bearing at 12% compounded annually is to be discharged by the sinking fund method. If six annual deposits are made into a fund which pays 6% compounded monthly. a. Find the annual interest payment b. Find the size of the annual deposit into the sinking fund. c. What is the annual cost of this debt? d. Construct the sinking fund schedule. Period Interest Sinking Fund Interest Deposit earned Sinking Fund Balance Net amount loanFind the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly and produces $44,000 at the end of 3.5 years. Payments are made at the end of each period. The payment size is $_
- 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.)Payments of $4,000 are made into a fund at the beginning of each year for ten years. The fund is invested at an annual effective rate of i. The interest generated is reinvested at 13%. The total accumulated value at the end of the ten years is $110,000. Find i. (Round your answer to two decimal places.)Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. 4) $8900; money earns 5% compounded annually; 13 annual payments Please show all workings step by step.
- Eight equal deposits of $1,000 are made at the end of each year into a fund paying 8%. a. What is the present worth, 1 year before the first deposit? b. What is the future worth, immediately after the last deposit? c. What is the future worth, 3 years after the last deposit?Five annual deposits in the amounts of $15,000, $14,000, $13,000, $12,000, and $11,000 are made into a fund that pays interest at a rate of 7% compounded annually. Determine the amount in the fund immediately after the fifth deposit.Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to accumulate $66,000 over 6 years. Payments are made at the end of each period. The payment size is $ (Round to the nearest cent.)