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Q: You are the finance manager for a particular company. The company plans to purchase $3,000,000 in…
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A major city wants to establish a sinking fund to pay off debts of PKR 800 million which come due in 10 years. The city can earn interest at the rate of 8 percent per year compounded monthly. If first deposit is made 1 month from now;
What monthly deposit will be required to accumulate the PKR 800 million?
How much interest will be earned on these deposits
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- An investment company wants to establish a sinking fund to pay off debts of $85 million which come due in 10 years. The company can earn interest at the rate of 9 percent per year compounded annually. If the first deposit is made at the end of this year, what annual deposit will be required to accumulate the $85 million?A local University is planning to invest $500,000 every 3 months in an investment which earns interest at the rate of 15% per year compounded annually. The first investment will be at the end of this current quart. To what sum will the investment grow at the end of 5 years?How much interest will be earned during this period?In five years, ₱1.8M will be needed to pay for a building renovation. In order to generate this sum, a sinking fund of three annual payments is established now. For tax purposes, no further payments will be made after three years. How much payment is necessary if the money is worth 14% per annum? Assume a 6% inflation rate. Suppose an engineer purchases a home and secures a loan of ₱2.5M from a commercial bank for 20 years at an annual interest rate of 9%. Find the monthly amortization of the loan. How much is the total amount paid over the life of the loan in Problem 2? How much is the total amount of interest paid over 20 years in Problem 2. Please help me with this problem, thank you so much! I want to learn, you guys will be my guide
- A loan of $60,000 is due 10 years from today. The borrower wants to make annual payments at the end of each year into a sinking fund that will earn compound interest at an annual rate of 10 percent. What will the annual payments have to be? Suppose that the monthly payments earn 10 percent interest, compounded monthly. What would the annual payments have to be?Solve the following problem. If P100,000.00 is invested in a bank at 4.5% simple interest annually, how much interest will the investor get after 5 years? are3. You can expect annual benefit of $15,800 if you deposit $142,200 in a bank account right now. The only catch with this investment is the fact that the annual benefit payments start at the end of the 2nd year. The stream of the benefits is expected to continue for somewhere between 15 and 20 years. What is the payback period of this financial deal?
- To pay off $50,000,000 worth of new construction bonds when they come due in 20 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting three months from now. If the interest rate for the sinking fund is 8% compounded quarterly, how much will each deposit be?To pay off $50,000,000 worth of new construction bonds when they come due in 20 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting three months from now. If the interest rate for the sinking fund is 8% compounded quarterly,how much will each deposit be?A state lotto has a prize that pays $900 each week for 30 years.Find the total value of the prize: If the state can earn 4% interest on investments, how much money will they need to put into an account now to cover the weekly prize payments?
- PLEASE TYPE IT AND NOT HANDWRITTEN You need to put a new roof on a building in 10 years at an estimated cost of P20,000. How much will you invest every month, so by earning interest at 5% compounded monthly, there will be P20,000 in the bank after 10 years?A loan of $50,000 is due 10 years from today. The borrower wants to make monthly payments at the end of each month into a fund so that the fund accumulates $50,000 by the end of 10 years. The fund will earn 10 percent returns compounded monthly. What will the monthly payments have to be? A loan of $50,000 is due 10 years from today. The borrower wants to make monthly payments at the end of each month into a fund so that the fund accumulates $50,000 by the end of 10 years. The fund will earn 10 percent returns compounded monthly. What will the monthly payments have to be? $268.50 $341.72 $366.13 $317.31 $244.093. If you are planning a trip to other place after 3 years. And, if you intend to deposit savings of ETB 1,000 now and expects to deposit another ETB 500 at the End of next year. If the bank pays 5% interest per year compounded annually, how much money can you expect to be available to you at the time of your departure? 4. Acompany has to replace a present facility after 15 years at an outlay of ETB. 5,00,000. It plans to deposit an equal amount at the end of every year for the next 15 years at an
