Find the amount of a perodic payment necessary fur the deposit of a sinking fund. Amount needed a = 60000 Frequency n = semi-annual Rate r = 2% Time t = 10 years
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Find the amount of a perodic payment necessary fur the deposit of a sinking fund.
Amount needed a = 60000
Frequency n = semi-annual
Rate r = 2%
Time t = 10 years
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- Using the sinking fund formula or a financial calculator, complete the following: (Do m answer to the nearest cent.) $ Required amount 24,900 Frequency of payment Quarterly Length of time 7 years Interest rate 8 % Payment amount end of each perioddetermine the size of the payments that must be made to a sinking fund in order to accumulate $233,188 if the interest rate is 5.25% compounded quarterly and payments are made for 7 1/4 years. Use TVM solverFind the monthly payment R needed to have a sinking fund accumulate the future value A. The yearly interest rate r and the time t in years are given below. Interest is compounded monthly. A= $9,000; r=7%; t= 1 R=$ (Round up to the nearest cent.) ue ue ie Enter your answer in the answer box and then click Check Answer. ue All parts showing Clear All Check Answer To see what to study next, go to your Study Plan. 99- a
- Number of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount Initial amount $185,500 Annual cash flow $71,963 Rate of return 14% The number of investment years, n, is enter your response here years.✓ Number of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial amount $170,100 Annual cash flow $20,473 GCXX Rate of return 5% The number of investment years, n, isyears. (Round to two decimal places.) st artNumber of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Initial amount $112,100 Annual cash flow $25,622 Rate of return C 5% The number of investment years, n, is years. (Round to two decimal places.)
- A company wants to save GH¢100000 over the next 5 years so that they can expand theirplant facility. How much must be deposited at the end of each year if their money earnsinterest at j1 = 6%? Construct a complete sinking-fund schedule.How to estimate an appropriate loan tenor of a PE fund? If the fund is maturing in 2 years, and looking to refinance its debt, would a 2 year loan facility be appropriate?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. $35,245 to be accumulated in 6 years; quarterly payments of $1300 The interest rate needed is approximately %. (Type an integer or decimal rounded to two decimal places as needed.)
- Based on the following table, what is the approximate Internal Rate of Return (IRR) for a project that costs $189,000 and provides annual cash inflows of $70,000 for 3 years? (See your Chapter 25 notes, page 8) Rate of Present Value of an AnnuityReturn of $1 Received for Three Years 4% 2.8 6% 2.7 8% 2.6 10% 2.5 12% 2.4 14% 2.3 16% 2.2 20% 2.1 16 percent 10 percent 8 percent 14 percent 4 percent 20 percent 12 percent 6 percent4. ( Fund A earns interest at a simple rate of i% a year. $P is invested in fund A. (a) What is the accumulated value in fund A at time t years. (b) Calculate the effective rate of interest in year 1, year 2 and year 3. Solution:Classify the financial problem. Assume a 4% interest rate compounded annually. Find the value of a $1,000 certificate in 6 years. A. amortizationB.ordinary annuity C.present valueD. sinking fundE.future value Answer the question. (Round your answer to the nearest cent.)