A fund is being formed by monthly deposit of P2,000 at 6% compounded monthly a) Find the amount after a year b) What is the amount in the fund just after the 5 deposit? c) Construct the sinking fund schedule for a 5 month period.

Q: an electrical engineer desires to set up fund by making uniform monthly end of period deposits for a…

A: first calculate the value at the end of the decade FV = 0, N = 3, PMT = 250,000, rate = (1+6%/12)12…

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: Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year,…

A:

Q: Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round…

A: We need to calculate periodic/weekly payment by using sinking fund formula PMT =FVn1+rnn*t-1rn Where…

Q: What equal series of payments must be paid into a sinking fund in order toaccumulate each given…

A: Sinking fund refers to the funds that are kept by the companies aside on periodic basis so that…

Q: a.) How much money must be invested at the end of each quarter for 25 years in a sinking fund that…

A: Here, Future value is 'FV' Present value or investment amount is 'P' Nominal interest rate is 'r'…

Q: What monthly payment into a sinking fund at 8% compounded semi –annually will be needed to raise…

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

Q: Find the interest rate needed to accumulate $45,000 in a sinking fund in 10 years, with annual…

A: A fund that is created to repay a debt or replacement of an asset by putting an equal sum of amount…

Q: An engineer wishes to set up a special fund by making uniform semiannual end-of-period deposits for…

A: The net amount of cash and cash equivalents being transferred in and out of a company is referred to…

Q: Marigold Corp. deposits $12000 in a fund at the end of each year for 5 years. The fund pays interest…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: The sum of $159,760 is invested at 5.5% compounded monthly for four years. After the four years, the…

A: The present value of annuity refers to the current value of future annuity payments to be paid at a…

Q: A fund of 25000 is to be accumulated by means of deposits of 1000 at the beginning of every year as…

A: Deposits are being done to get a lump-sum return on the periodic amount that has been invested.…

Q: PROBLEM: Annual deposits were made in a fund earning 10% per annum. The first deposit was P2,000 and…

A: Number of annual deposits = 6 First deposit amount = P2,000 Annual decrease in deposit amount = P…

Q: Use the sinking fund formula shown to the right to determine the semiannual payments with 6​%…

A: Sinking fund formula can be used to calculate the semiannual payment to accumulate the the amount.…

Q: find the size of each 4 payments made at the end of each year into a 9% rate sinking fund which…

A: Future value (FV) = 63000 Interest rate (r) = 9% Number of annual payments (n) = 4

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

A: An amount (FVA) $8900 will be present at the end of (n) 13 annual payments with interest rate (r )…

Q: A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every…

A: given, p= $21,000 n=6 r= 5.9%

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: Annual deposits were made in a fund earning 10% per annum. The first deposit was Php 20,000 and each…

A: Compounding is a method of charging interest in which Interest is charged on the amount including…

Q: A loan of 350000 is taken over twenty years and will be repaid using the sinking fund method with…

A: Loan amount (P) = 350000 Annual interest rate = 3% Quarterly interest rate (r) = 3%/4 = 0.75% Period…

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: Urgently need. An engineer wishes to set up a special fund by making uniform semiannual…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

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

A: Future value required (FV) = $ 2,100,000 Period = 3 Years Number of semi annual payments (n) = 3*2 =…

Q: Solve by using the sinking fund or amortization formula. (Round your answer to the nearest cent.)…

A: Note: It is a situation where multiple questions have been asked, so we are allowed to solve the…

Q: Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly…

A: End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…

Q: Payments of 1000 are invested at the end of each year for 5 years. The payments earn interest at an…

A: Annuity involves the payment of a periodic amount up to a specified period of time, and eventually a…

Q: A sinking fund of $100,000 is to be established with equal payments at the end of each half-year for…

A: Present value = $100,000 Time = 15 years ;  semi annual period = 30 Rate =10% ; semi annual rate =…

Q: Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the…

A: Future value can be computed by compounding each of the annual payment.  Future value can be…

Q: Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposit…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: Semiannual deposits, beginning with $500 and increasing by $100 with each subsequent deposit, are…

A: a) Computation:

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: Bi-monthly deposits of 16,000 are made to accumulate a fund at the end of 8 years. Round off final…

A: Here, Bi- Monthly Deposit is $16,000 Time Period of Deposit is 8 years Note: Here, it is not clearly…

Q: What sinking fund payment is required at the end of each 6-month period, at 6% interest compounded…

A: Payment required at end of each 6-year period can be calculated as: = Future Value / Future value of…

Q: At the beginning of each year? ___________ At the end of each year?

A: Information Provided: Funds amount = $300,000 Annual earning rate = 7.75% Term = 25 years

Q: A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every…

A: Sinking fund can be defined as the fund which has been established for the purpose of accumulating…

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: If a fund pays 12% compounded annually, what single deposit now will accumulate $12,000 at the end…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: If annual deposits of $1,000 are made into a fund paying 12% interest compounded annually, how much…

A: Present Value of deposits (PV)=$1,000 Interest Rate (r)= 12% compounded annually Time period (n)= 5…

Q: Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposi…

A: The today value is the present value of annual series considering the interest rate and given period…

Q: In order to have ₱1 million in a fund at the end of 15 years, how much must be deposited in the fund…

A: Amount to be deposited per quarter can be calculated using PMT function in excel. PMT(rate, nper,…

Q: Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year,…

A: The future value is computed by multiplying the present money by the future value annuity factor. In…

Q: A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to…

A: The answer to this question is a Palindromic annuity The formula to be used for solving this is,

Q: Find the AV of these deposits

A: Time value of money (TVM) means that the amount received in the present period will have more…

Q: 240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the…

A: Here the concept of annuity will apply. This is the case of an annuity due as the payments are made…

Q: Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the…

A: Excel Spreadsheet:

Q: The sum of P4200 will be withdrawn from a fund at 3-month intervals, the first withdrawal to be made…

A: Solved using Financial Calculator  PV = -48,000 FV = 6000 PMT = 4200 I/Y = 7 CPT N = 22.2304…

Q: in order to have a fund of 1,000,000 at the end of 12 years, equal deposits every six months must be…

A: Future value of sequence of periodic payments consists of payments made and interest accumulated…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.