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Parents have set up a sinking fund in order to have $49,000 in 7 years for...
6 Q097 Sinking Fund Veronica wants to set up a sinking fund in order to have...
6 Q097 Sinking Fund Veronica wants to set up a sinking fund in order to have $16,300. in 14 years. she can obtain an annual interest rate of 3.65%. Find the amount of payment she should pay into the fund at the end of each period in order to achieve this goal. Assume that the interest on the fund is compounded monthly and the payments are at the end of each month. Round your final answer to the nearest penny....
New parents wish to save for their newborn's education and wish to have $30,000 at the...
New parents wish to save for their newborn's education and wish to have $30,000 at the end of 18 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 7% compounded annually? (Round your answers to two decimal places.) $ 882 38 How much interest would they earn over the life of the account? $ 14117.16 Determine the value of the fund after 10 years. $ 12191.36...
Sepia Inc. issued bonds for $350,000 that were redeemable in 9 years. They established a sinking...
Sepia Inc. issued bonds for $350,000 that were redeemable in 9 years. They established a sinking fund that was earning 4.49% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposit. $0.00 Round your answer up to the next cent b. Calculate the sinking fund balance at the end of the payment period 12....
A sinking fund is established by a working couple so that they will have $60,000 to...
A sinking fund is established by a working couple so that they will have $60,000 to pay for part of their daughter's education when she enters college. If they make deposits at the end o each 3-month period for 16 years, and if interest is paid at 14%, compounded quarterly, what size deposits must they make? (a) State whether the problem relates to an ordinary annuity or an annuity due ordinary annuity O annuity due (b) Solve the problem (Round...
A corporation creates a sinking fund in order to have $670,000 to replace some machinery in...
A corporation creates a sinking fund in order to have $670,000
to replace some machinery in 8 years. How much should be placed in
this account at the end of each month if the annual interest rate
is 6.5% compounded monthly? (Round your answers to the nearest
cent.)
$
How much interest would they earn over the life of the
account?
$
Determine the value of the fund after 2, 4, and 6 years.
2 years
$
4 years
$...
A sinking fund is established to discharge a debt of $50,000 in 25 years. If deposits...
A sinking fund is established to discharge a debt of $50,000 in 25 years. If deposits are made at the end of each 6-month period and interest is paid at the rate of 4%, compounded semiannually, what is the amount of each deposit? (Round your answer to the nearest cent.)
A sinking fund amounting to $20,000 is to be created by making payments at the beginning...
A sinking fund amounting to $20,000 is to be created by making payments at the beginning of every 3 months for 8 years. Interest earned by the fund is 6.6% compounded quarterly. Determine the size of the periodic 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 $ nothing. (Round the final answer to the nearest cent as needed. Round all intermediate values...
A corporation creates a sinking fund in order to have $700,000 to replace some machinery in...
A corporation creates a sinking fund in order to have $700,000 to replace some machinery in 11 years. How much should be placed in this account at the end of each week if the annual interest rate is 7% compounded weekly? (Round your answers to the nearest cent.) $ How much interest would they earn over the life of the account? $ Determine the value of the fund after 2, 4, and 6 years. 2 years $ 4 years...
Your company wants to set aside a fixed amount every year to a sinking fund to...
Your company wants to set aside a fixed amount every year to a sinking fund to replace a piece of industrial equipment costing $246,000 at the end of four years from now The sinking fund is expected to earn 6% interest. How much m ust your company deposit each year to meet this goal? Click the icon to view the interest factors for discrete compounding when 1-6% per year. Your company nust deposit each year Sto meet this goal. (Round...
Kevin will go to college in three years. His parents are opening an educational fund for...
Kevin will go to college in three years. His parents are opening an educational fund for him, depositing $4000 at the start of each quarter. If the fund assesses a 9 ¼ % interest compounded quarterly, how much will Kevin have in his account when he starts college?
6 Q097 Sinking Fund Veronica wants to set up a sinking fund in order to have $16,300. in 14 years. she can obtain an annual interest rate of 3.65%. Find the amount of payment she should pay into the fund at the end of each period in order to achieve this goal. Assume that the interest on the fund is compounded monthly and the payments are at the end of each month. Round your final answer to the nearest penny....
New parents wish to save for their newborn's education and wish to have $30,000 at the end of 18 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 7% compounded annually? (Round your answers to two decimal places.) $ 882 38 How much interest would they earn over the life of the account? $ 14117.16 Determine the value of the fund after 10 years. $ 12191.36...
Sepia Inc. issued bonds for $350,000 that were redeemable in 9 years. They established a sinking fund that was earning 4.49% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposit. $0.00 Round your answer up to the next cent b. Calculate the sinking fund balance at the end of the payment period 12....
A sinking fund is established by a working couple so that they will have $60,000 to pay for part of their daughter's education when she enters college. If they make deposits at the end o each 3-month period for 16 years, and if interest is paid at 14%, compounded quarterly, what size deposits must they make? (a) State whether the problem relates to an ordinary annuity or an annuity due ordinary annuity O annuity due (b) Solve the problem (Round...
A corporation creates a sinking fund in order to have $670,000
to replace some machinery in 8 years. How much should be placed in
this account at the end of each month if the annual interest rate
is 6.5% compounded monthly? (Round your answers to the nearest
cent.)
$
How much interest would they earn over the life of the
account?
$
Determine the value of the fund after 2, 4, and 6 years.
2 years
$
4 years
$...
Your company wants to set aside a fixed amount every year to a sinking fund to replace a piece of industrial equipment costing $246,000 at the end of four years from now The sinking fund is expected to earn 6% interest. How much m ust your company deposit each year to meet this goal? Click the icon to view the interest factors for discrete compounding when 1-6% per year. Your company nust deposit each year Sto meet this goal. (Round...
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