Question

The management of Gibraltar Brokerage Services anticipates a capital expenditure of $20,000 in 3 yr for the purpose of purchasing new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 10%/year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund. (Round your answer to the nearest cent.) $ Need Help? Read it Tato Tuter 11. [-/0.1 Points) DETAILS TANAPMATHS 4.3.031. MY NOTES PRACTICE ANOTHER Andrea, a self-employed individual, wishes to accumulate a retirement fund of $400,000. How much should she deposit each month into her retirement account, which pays interest at a rate of 8.5%/year compounded monthly, to reach her goal upon retirement 30 yr from now? (Round your answer to the nearest cent.) Need Help? | Toko DETAILS 12. [-/0.1 Points] TANAPMATHS 4.3.032. MY NOTES PRACTICE ANOTHER Joe secured a loan of $15,000 two years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 5%/year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by amortizing it through monthly payments over 14 yr at the same interest rate. Find the size of the monthly payments he will be required to make. (Round your answer to the nearest cent.) $ Need Help? Tak to Tuter

Answer 1

10.
FV = 20000
Nper = 3 * 4 = 12
Rate = 10% / 4 = 2.5%
PV = 0

Quarterly payment can be calculated by using the following excel formula:
=PMT(rate,nper,pv,fv)
=PMT(2.5%,12,0,-20000)
= $1,449.74

Quarterly payment = $1,449.74

Note: As per HOMEWORKLIB RULES, only first question can be answered. Post the rest of the questions separately.