Question

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?

Math   Algebra   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
A sinking fund is established with quarterly deposits of $120 at an interest rate j4= 7.9%....
A sinking fund is established with quarterly deposits of $120 at an interest rate j4= 7.9%. If the balance immediately after the nth deposit is $10133, what was the balance immediately after the (n−1)th deposit?
Kirk, Klein & Co. requires $104,000 fifteen years from now to retire a debt. A sinking...
Kirk, Klein & Co. requires $104,000 fifteen years from now to retire a debt. A sinking fund is established into which equal payments are made at the end of every 3 months. Interest is 10 % compounded quarterly. (a) What is the size of the quarterly payment? (b) What is the balance in the sinking fund after two years? (c) How much interest will be earned by the fund in the 20th payment interval? (d) By how much will the...
Prince deposits P10 000 into a fund today and deposits P20 000 into the same fund...
Prince deposits P10 000 into a fund today and deposits P20 000 into the same fund fifteen years later. Interest is credited at a nominal discount rate of d compounded quarterly for the first 10 years, and at a nominal interest rate of 6% compounded semiannually thereafter. The accumulated balance in the fund at the end of 30 years is P100 000. a) By first drawing a sketch diagram, write down in terms of d the accumulated value of the...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly. How much will be the total you have at the end of the time? 2. How much money will you have to deposit now if you wish to have $5,000 at the end of 8 years. Interest is to be at the rate of 6% compounded semiannually? 3. In the California “Million Dollar Lottery” a winner is paid...
1. Chris Spear invested $50,000 today in a fund that earns 8% compounded semiannually. To what...
1. Chris Spear invested $50,000 today in a fund that earns 8% compounded semiannually. To what amount will the investment grow in 3 years? 2. Sally Medavoy will invest $10,000 a year for 3 years in a fund that will earn 6% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 3 years? 3. John Fillmore's lifelong dream is to own his own fishing boat to use in his retirement....
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?
To provide for expansion, a company has established a sinking fund earning 8 % monthly. The...
To provide for expansion, a company has established a sinking fund earning 8 % monthly. The fund is anticipated to reach a balance of $72,000 in 13 years. Payments are made at the beginning of every month.month. (a) What is the size of the periodic payment? (b) What is the accumulated balance at the end of payment period 107?
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.
A company borrowed $ 74,500. The company plans to set up a sinking fund that will...
A company borrowed $ 74,500. The company plans to set up a sinking fund that will pay back the loan at the end of 6 years. Assuming a rate of 6% compounded semiannually, find the Sinking Fund of the ordinary annuity. (please make answer clear not handwriting)
Find the amount accumulated FV in the sinking fund. HINT [See Example 1.] (Assume end-of-period deposits...
Find the amount accumulated FV in the sinking fund. HINT [See Example 1.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $400 is deposited monthly for 10 years at 2% per year in an account containing $6,000 at the start FV = $ Find the periodic payments PMT necessary to accumulate the amount given in a sinking fund. HINT [See Example 2.] (Assume end-of-period deposits and compounding at the same...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT