Question

a regular saving of 350$ is made into a sinking fund at the start of each...

a regular saving of 350$ is made into a sinking fund at the start of each year for 7 years. Determine the final value of the fund if the rate of interest is 10% compounded anually
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Since the contribution is made at the start of the year, the interest will be calculated on the full amount. Hence the working will be as follows:

Hence value of the fund at the end of 7 years is $3,652.56  

Happy Learning!

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Find the amount of each payment to be made into a sinking fund which earns 9?%...
Find the amount of each payment to be made into a sinking fund which earns 9?% compounded quarterly and produces ?$42,000 at the end of 3.5 years. Payments are made at the end of each period. the payment size is?
A corporation creates a sinking fund in order to have $680,000 to replace some machinery in...
A corporation creates a sinking fund in order to have $680,000 to replace some machinery in 10 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 4.3% compounded quarterly? (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 6%, compounded semiannually, what is the amount of each deposit?
A corporation creates a sinking fund in order to have $760,000 to replace some machinery in...
A corporation creates a sinking fund in order to have $760,000 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 3.6% 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.    $ How much interest was earned...
□ A Company has decided to set up a sinking fund to replace an asset after...
□ A Company has decided to set up a sinking fund to replace an asset after 5 years. The value of the fund after 5 years must be Tk. 1,00,000 and the fund is expected to earn interest at the rate of 7% per annum. i) What must be the annual payment into the fund if the payment make at the end of each year?
A corporation creates a sinking fund in order to have $610,000 to replace some machinery in...
A corporation creates a sinking fund in order to have $610,000 to replace some machinery in 11 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 4.9% compounded quarterly? (Round your answers to the nearest cent.) $10544.14   How much interest would they earn over the life of the account? $   146057.84 Determine the value of the fund after 2, 4, and 6 years. 2 years $  88059.78 4 years $  185128.62...
how much should alex put in a sinking fund at first of each quarter earning 8%...
how much should alex put in a sinking fund at first of each quarter earning 8% compounded quarterly for 6 years in order to accumulate 10,000?
After graduating​ college, Jon finds a job and decides to start saving for retirement. He deposits...
After graduating​ college, Jon finds a job and decides to start saving for retirement. He deposits 1180 at the end of each month into a retirement account that pays 5.8​% interest compounded monthly. After 5​ years, he moves the investment to a mutual fund which pays 7.3​% compounded monthly and increases his monthly deposit to 2000. Find the amount Jon will have on deposit 5 years after that​ (10 years after​ graduation).
What annual sinking fund payment would be required to yield $ 4,400 5 years from​ now?...
What annual sinking fund payment would be required to yield $ 4,400 5 years from​ now? The annual interest rate is​ 6% compounded semiannually. Round to the nearest cent.
You plan on saving $10,000 a year (as a regular annuity) for the next 30 years.  You...
You plan on saving $10,000 a year (as a regular annuity) for the next 30 years.  You will then make equal withdrawals for each of the next 25 years (also a regular annuity).  If the interest rate is 10% over the first 30 years but only 8% for the remaining 25 years, what will be the amount of each withdrawal?  
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT