3. Kenchana Sdn. Bhd. needs $2,100,000 in 3 years. Find the required semiannual payment into a sinking fund if funds are invested in an account earning 10% per year compounded semiannually.

Q: $1500 is invested semi-annually for 3 years into a fund that pays 6.8% per year, compounded semi-…

A: We have; Amount invested semi annually as $1500  Interest rate is 6.8% compounded semi annually Time…

Q: A 15-year, $500,000 loan will be repaid by the sinking fund method. Interest only must be paid at…

A: A sinking fund increases a company's creditworthiness, it allows a small corporation to offer a…

Q: A company project needs to establish a fund within a ten-year period by making annual deposits of…

A:

Q: A business must raise $57,000 in five years. What should be the size of the owners quarterly payment…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: A company makes fixed annual payments to a sinking fund to replace equipment in five years’ time.…

A: Future Value of Money Required = 200,000 Time Period = 5 years Interest  Rate = 10%   Future Value…

Q: 3. How much should be invested in a fund each year paying 3% compounded semi-annually to accumulate…

A: The accumulated value is the future value of a regular annuity paid at regular intervals. It…

Q: A company estimates that it will need $300,000 in 9 years to replace an important machine. If it…

A: Required amount = $300,000 Time period = 9 years  Interest rate = 6.5% compounded monthly

Q: Choi Home Repair needs to accumulate $24,000 in 6 years to purchase new equipment. What sinking fund…

A: Given: Future value: $24,000 Rate: 8%/4 = 2% Nper: 6*4 = 24

Q: Sheridan Company will invest $830000 today. The investment will earn 8% for 7 years, with no funds…

A: The answer is as fallows

Q: Your company estimates it will have to replace a piece of equipment at a cost of P5,800,000 in 5…

A: Given information: Future cost of equipment amounted to P5,800,000 Number of years is 5 Interest…

Q: A business needs ₱1,550,000 in eight years. How much should be deposited each quarter in a sinking…

A: Sinking Fund is a fund that is kept aside or borrowed to pay off a debt or a loan. It helps the…

Q: 5. In order to repay a debt of RM20000, a company decided to establish a sinking fund at 5 %…

A: Note: This question contains two questions. The first question (Q5) has been answered below:

Q: Bank Muzn provides musharakah mutanaqisah financing to Moonway corporation for house developing…

A: Share capital at of end of year n = Total assets - Outstanding liabilities at end of year n

Q: re to made to the fund

A: Money Required (Future Value) = 40,000 Present Value (value at start) = 0 N = 3 years Quarterly…

Q: of $100,000 from Tajinder. The money is invested a 8% compounded quarterly. The grant is to be used.…

A: Effective semiannual interest rate = (1 + 0.08/4)^2-1 = (1 + 0.02)^2-1 = (1.02)^2-1 = 0.0404 ~4.04%…

Q: 3. In five years, 180,000 will be needed to pay for a building renovation. In order to generate this…

A: Future value required (FV) = 180,000 Annual interest rate (R) = 15% Annual payment = P Future value…

Q: Use the sinking fund formula shown to the right to determine the monthly payment needed to…

A: A sinking fund can be referred to as a type of fund specially created to pay off the debts.…

Q: Find the amount of each payment to be made into a sinking fund earning 9% compounded monthly to…

A: Data given: A=Amount to be accumulated = $86,000 P= Payment to be made = ? i=interest rate…

Q: A- A company borrowed $60,000 for renovation. The company plans to set up a sinking fund that will…

A: Loan Amount = 60,000 Time Period = 5 years*2 = 10 semi annual periods Interest rate = 10%/2 = 5% per…

Q: Ikhwan's Sports Store needs RM840,000 in 6 years. If funds are invested an account earning 8% per…

A: Sinking fund is a system which is used by the bussiness to arrange funds for some future objectives…

Q: Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to…

A: Future value (FV) = $39,000 Interest rate = 7% Monthly interest rate (r) = 7%/12 =…

Q: Find the amount of each payment to be made into a sinking fund earning 7 % compounded monthly to…

A: Future value is the worth of the current amount in future date after considering the interest rate…

Q: A company borrowed $60,000 for renovation. The company plans to set up a sinking fund that will pay…

A: Given: Loan = $60,000 Interest rate = 10% period = 5 years Compounded semi annually

Q: Your company has decided to set up a fund for its employees with an initial payment of Rs 27,500…

A: a.Calculate the size of the fund as follows:

Q: A company wants to save GH¢100000 over the next 5 years so that they can expand their plant…

A: GIVEN, FV = GH¢100000 N = 5 YEARS R=6%

Q: A company has retire 500,000 debentures of 8% interest 10 years from today. The company plans to put…

A: Sinking fund is created to retire debt of $500,000 after 10 years which would earn an interest of…

Q: A Company sets aside Peso 200,000 at the end of each year for plant expansion. If the fund draws 8%…

A: Compound interest (also known as compounding interest) seems to be interest computed on a mortgage…

Q: Smith Investors places $50,000 in an investment fund. One year after making the investment, Smith…

A: IRR(internal rate of return) is the rate of return an investment generates in its lifetime expressed…

Q: Choi Home Repair needs to accumulate $26,000 in 6 years to purchase new equipment. What sinking fund…

A: Dear student, we need to find future value of ordinary annuity factor by using table 12-1 in the…

Q: Choi Home Repair needs to accumulate $24,000 in 6 years to purchase new equipment. What sinking fund…

A: Frist we need to find future value annuity factor of ordinary annuity in table attach below question…

Q: Calculate the future value of end-of-month payments of $500 made for 4 years into an investment fund…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: Use the sinking fund formula shown to the right to determine the semiannual payments with 8%…

A: Sinking fund can be defined as the saving fund, in which, the business organizations tend to…

Q: Abc plans to construct an adiitional building at the end of 10 years at an estimated cost of…

A: first calculate the payments for the first 5 years N = 10, FV = 5,000,000, rate = 13%, PV = 0 use…

Q: 2. If P500.00 is deposited in an account at the beginning of each year for 6 years at an annual…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Kenchana Sdn. Bhd. needs $2,100,000 in 3 years. Find the required semiannual payment into a sinking…

A: Business use sinking funds to accumulate funds to purchase new equipment or to meet other expensive…

Q: Motel Company is analyzing a capital expenditure that will involved a cash out lay of $208,240.…

A: The internal rate of return method: The internal rate of return method is one of the capital…

Q: XYZ plans to construct an additional building at the end of 10 years fo an estimated cost of…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

Q: Aling Paring started to deposit P2,000 quarterly in a fund that pays 5.5% compounded quarterly.-…

A: The question gives the following information:

Q: 17. Four Seasons Pools needs $115,000 in 3 years. Find the required quarterly payment into a sinking…

A: Sinking Fund-  A fund that is created for special purposes with regular payment over a specified…

Q: Ayayai Corporation wants to withdraw $125,900 (including principal) from an investment fund at the…

A: The question is related to Presnt Value. In the given question the company wants to withdraw $125900…

Q: Jones Assoc. borrowed $40,000. The company plans to set up a sinking fund that will pay back the…

A: Given information: Amount borrowed : $40,000 time period : 8 years rate of interest : 12%…

Q: Use the sinking fund formula shown to the right to determine the monthly payment needed to…

A: A Sinking fund refers to a fund that is kept aside or borrowed in order to pay off a debt or a loan.…

Q: Cargojet Corp. is preparing for the replacement of one of its jets in three years by making payments…

A: The question is based on the concept of  sinking fund to accumulate the required amount at end . The…

Q: How much would a business have to invest in a high-growth fund to receive $13,000 every month for 7…

A: An annuity is the total of regular payments made over a period of time at a specific date, at a…

Q: Roopali is considering an investment proposal with the following cash flows: Initial…

A: Payback Period: This is the amount of time it takes to recoup the cost of an investment or the…

Q: Find the amount of each payment to be made into a sinking fund so that enough will be present to…

A: As per the given information: Amount - $49,000 Rate of interest (r) - 4% compounded semiannually…

Q: Second Hand Software needs to accumulate $12,000 in 3 years to meet future needs. What sinking fund…

A: Sinking fund is defined as the method of the funds repayment, which borrows by the bond issue by the…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.