A company establishes a sinking fund to discharge a debt of $750,000 due in 8 years by making equal semiannual deposits, the first due in 6 months. If the investment pays 12%, compounded semiannually, what is the size of the deposits?

Q: Deposits of Php 1500 each were made in a sinking fund at the end of each year. If the fund earned…

A: Deposit each month = 1500 End of year deposits Interest Rate = 6% Future Value after seventh deposit…

Q: Rich Company's cash balance on January 1st is $110,000 and they want to keep a minimum balance of at…

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A: Periodic deposit for sinking fund can be calculated by annuity from future value formula in excel…

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A: The future value is the future worth of the amount that will be paid or received at future.

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A: In this we need to calculate the sinking fund factor from that we can get the payment.

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A: Hi there, thanks for posting the questions. But as per our Q&A guidelines, we must answer the…

Q: A sinking fund is established to discharge a debt of $60,000 in 15 years. If deposits are made at…

A: using financial calculator, N =15*2 =30 I/Y = 4/2 =2 PV = 0 FV = -60000

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A: Given information, Annual sinking fund deposit =$619,000 Return (r)=10% No of years(N) =15 years

Q: A company deposited $12,000 into an investment fund at the beginning of every quarter for 5 years.…

A: When the periodic amount in an investment fund is deposited during the start of the period, the…

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A: Here,

Q: a. Calculate the size of the periodic sinking fund deposit. Round your answer up to the next cent b.…

A: Please note that as per the guidelines, only the first three questions a, b and c are to be…

Q: Jhon borrows 15,000 to be repaid in equal annual installments at the end of each year for 3 years.…

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Q: To raise $4,000,000 to expand into new markets, a very successful laptop manufacturing company…

A: Face Value = $4,000,000 Coupon rate = 2.5% Time period = 19 Years

Q: A company deposited $10,000 into an investment fund at the beginning of every quarter for 3 years.…

A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…

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Q: A sinking fund is established to discharge a debt of $60,000 in 5 years. If deposits are made at the…

A: Sinking fund is an accumulated fund to pay-off the future debts or expenses. Firm deposit an annual…

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A: Periodic cost of the debt here will be the periodic interest paid and the amount deposited in the…

Q: On January 1, a company agrees to pay $27,000 in six years. If the annual interest rate is 10%,…

A:

Q: If $1,000 is invested today at Bank Alfalah ltd and $1,000 is invested at the beginning of each of…

A: Using excel FV Function

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Q: Mack Company, HappyDay’s branch, plans to invest $50,000 in land that will produce annual rent…

A: As you have posted multiple independent questions, we are answering the first question. Kindly…

Q: Sarasota Corporation, having recently issued a $20,134,100, 15-year bond issue, is committed to make…

A: Sinking Fund refers to amount which is set aside from profits to meet future known liability. It…

Q: A company decides to borrow $100 000 at jj = 12% in order to finance a new equipment purchase. One…

A: A sinking fund is used to calculate the accumulated money to pay a debt or expenses in the future.…

Q: A manufacturing firm sets aside P50,000 at the end of each year for 5 years in a sinking fund…

A: Annual deposit = P 50,000 Period = 5 Years Annual interest rate = 12%

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 1 million bond issue is outstanding. Assume deposits earn 8 percent per annum. Calculate the…

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Q: Mack Company, HappyDay’s branch, plans to invest $50,000 in land that will produce annual rent…

A: Step 1 Alternative analysis is to evaluate the profitability and leverage, to ensure the…

Q: A sinking fund is established to discharge a debt of $80,000 in 20 years. If deposits are made at…

A: Working note:

Q: 4. A company owes P 80,000, which includes the interest, to be paid one year from now. To provide…

A: At the end of a year (12 months), the total Future Value of the repayments is P =76063.59.The fund's…

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Q: Ontario Credit Union borrowed $275,000 at 9.5% compounded semi-annually from League Central to build…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: On January 1, a company agrees to pay $12,000 in eight years. If the annual interest rate is 4%,…

A: Present value (PV) which is the concept of accounting that states the sum amount today that is…

Q: A company deposited $14,500 into an investment fund at the beginning of every quarter for 7 years.…

A: The accumulated value of any fund is equal to the sum of future value of all the deposits made…

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A: Sinking fund can be defined as a fund which help an investor to accumulate a targeted amount of fund…

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Q: Maju City issued a RM700,500.00 face vale bond with four years until maturity. It will make…

A: A sinking fund is a fund created in which money is set aside by the company s that they can pay off…

Q: or two years. Cnstruct à sinking fünd schedule if the lender receives #7 A borrower takes out a loan…

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

Q: Harper Co. funds the acquisition of equipment on January 1, year 8 by issuing a $15,000…

A: Given Purchase cost = 15000 The present value of an ordinary annuity of $1 at 5% for 10 periods…

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Q: Woland National Bank purchases a three-year interest rate cap for a fee of 2 percent of notional…

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Q: 9. A corporation has decided to use borrowed capital to finance a portion of an equipment purchase.…

A: Borrowed amount is $40,000 Time Period is 2 year Interest rate is 7% Compounded annually To Find:…

Q: June  30, 20X1 Titan Corp. licensed an archive financial database to Smart Co. for the next five…

A: Solution Given Amount paid at the beginning of each year 10000 Number of years 5 years…