Answered: Aling Paring started to deposit P2,000…

Aling Paring started to deposit P2,000 quarterly in a fund that pays 5.5% compounded quarterly.- much will be in the fund after 6 years?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 9RE

See similar textbooks

Related questions

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: Red Company invested $10,000 in a fund that was earning interest at a rate of 3.00% compounded…

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

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

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: 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: You are making $5,000 monthly deposits into a fund that pays interest at rate of 6% compounded…

A: We need to use the concept of time value of money (TVM) to solve the question. According to TVM, the…

Q: wo years from now. My Orly needs P32,000 to liquidate a certain debt. If money is worth 5%…

A: Time Period = 2 years * 4 = 8 quarters Interest Rate = 5%/4 = 1.25% per quarter Future Value…

Q: business must raise $50,000 in 9 years. What should the size of the owners’ quarterly payments to a…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Cincinnati Company has decided to put $30,000 per quarter in a pension fund. The fund will earn…

A: Quarterly payment is $30,000. Maturity period is 10 years. Rate of interest is 6%. Compounding…

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: 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: Mark deposit $1,000,000 in a fund today, the conditions for payment to Mark are a fixed amount for…

A: using excel Goal seek to find out the fixed amount

Q: P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the…

A: Semi annual deposit = P = P240,000 Interest rate = 11% Semi annual interest rate (r) = 11%/2 = 5.50%…

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: 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 fund is being formed by monthly deposit of P2,000 at 6% compounded monthly a) Find the amount…

A: future value of annuity=A×1+rmm×n-1rmwhere,A=monthly depositr=rate of interestm=frequency of…

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 trust fund is to be formed by depositing #4766 twice a year for 7 years in a bank that promises to…

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

Q: you started making sinking fund deposit of 20000 today. its bank pays 6% compounded semi-annually…

A: Solution Given Present deposit 20000 Rate of interest 6% compounded semiannually…

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: Save The Simpson Company invested $20000 in a fund that was earning interest at a rate of 5%…

A: Given data, Investment p = $20000 Rate of interest r = 5%= 0.05 compounded semi annually, so, n=2…

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: An investor needs $17,000 in 13 years. (a) What amount should be deposited in a fund at the end of…

A: Amount needed " FV" is $17,000 Time period is 13 years Interest rate is 7% Compounded Quarterly To…

Q: A sum of 50,000 deposited in a fund which will earn 12% compound semiannualy for the first 5 years…

A: Computation of the amount that will be received after 12 years is shown below:

Q: Your RRSP savings of $52,500 are converted to a RRIF at 4.22% compounded monthly that pays $5,372 at…

A: EXCEL FORMULA:

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: 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: 1. Bomac Steel sets aside $5000 at the beginning of every six months in a fund to replace equipment.…

A: Compuattion:

Q: A business must raise $50,000 in 9 years. What should be the size of the owners' quarterly payment…

A: A sinking fund is a fund that contains money or funds set aside for paying obligations or debt or…

Q: Keeler's Fabrication sets aside $3500.00 at the beginning of every six months in a fund to replace…

A: An annuity is an agreement between you and an insurance agency where you make a single amount…

Q: Calculate the future value of end-of-month payments of $4,000 made for 7 years into an investment…

A: Monthly Payments = $4,000 Time period = 7 years Interest Rate = 5.50% Compounding period =…

Q: Dobsen Door Manufacturer s sets up sinking fund to raise $75000 to pay off the maturity value of a…

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

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: Payments of $1,542 are made out of a fund of $20,000 at the end of every month. If interest is 4%…

A: In this question, first of all, we will prepare an amortization schedule, that would show the period…

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: A firm is required to make a payment at the end of each year for 9 consecutive years. The annual…

A: The formula to calculate the present value of future cash inflow is C/(1+r)n, where C is the cash…

Q: Suppose you make equal quarterly deposits of $2,500 into a fund that pays interest at a rate of 5%…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

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: 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: 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: Find the size of each of 8 payments made at the end of each year into a 9% rate sinking fund which…

A: Formula FVA = P*((1+i)n-1)/i Where FVA - Future value of annuity i.e. 55000 P - Annual payment i -…

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…

Question

Answer the number 3.

Gradė 12. HUW ImuCl Will Jou
3. Aling Paring started to deposit P2,000 quarterly in a fund that pays 5.5% compounded quarterly. How
much will be in the fund after 6 years?
the

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Q4: For 19 years, Janet saved $600 at the beginning of every month in a fund that earned 3.5% compounded annually.a. What was the balance in the fund at the end of the period?Round to the nearest centb. What was the amount of interest earned over the period?Round to the nearest cent
Ben invested P5000 in a fund at the beginning of every month for five years. The fund earning an interest rate of 5% compounded monthly. What was the total amount invested? a. None of the above b. P266, 057.50 c. P99, 378.77 d. P22, 729.75
Ali is making $1,000 monthly deposits into a fund that pays interest at a rate of 6% compounded monthly.What would be the balance at the end of 10 years? Select one: a. $127,200 b. $159,423 c. $158,169 d. $163,879
13. happy Corp. established a fund where they pay $200 annually into the fund. The interest rate that the fund earns is an annual rate of 6%. what will be the balance of the fund at the end of 5 years? Round to the nearest dollar
Peter started to deposit ₱5,000.00 quarterly in a fund that pays 1% compounded quarterly. How much will be in the fund after 6 years? a. ₱202.41 b. ₱214.91 c. ₱116,329.90 d. ₱123.514.09
In order to accumulate $1,000,000 over 20 years, how much would you have to invest at the beginning of every three months into a fund earning 7.2% compounded quarterly? a $5,369.45 b $5,169.57 c $5,0128.36 d $5,262.62
4. P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semi-annually, compute how much is in the fund at the end of 4 ½ years just after the last deposit. (use 2 decimal places for your final answer)
Rafael started to deposit P5,000 quarterly in a fund that pays 1% compounded quarterly. How much will be in the fund after 6 years? WSS plumbing wishes to pay off a debt of P130,000 in 2 years. What regular payment would they need to make every month at 12% interest compounded monthly? To pay for his debt at 12% compounded quarterly, Riley committed for 8 quarterly payments of P28,491.28 each. How much did he borrow?
Two years from now. My Orly needs P32,000 to liquidate a certain debt. If money is worth 5% compounded quarterly. a) How much must he deposit at the end of each quarter to provide for the payment of the debt? b) Form a sinking fund table showing the growth of the fund for two years.
You arc making $5.000 monthly deposits into a fund that pays inte rest at a rate of 6% compounded momhly. What would be the balance at the end of 15 years? Pls make a cashflow diagram. (a) $1,063,879 (b) $1.358.169 ( c) $ 1,452,053 (cl) $1.459,423
pm he company alfa & omega, s.a. You want to accumulate $1,000,000 in a sinking fund at the end of 7 years. What deposit made at the end of each two-month period is necessary if the fund pays 15.3781% compounded semiannually?
Meghan made equal deposits at the beginning of every 3 months into an RRSP. At the end of 6 years, the fund had an accumulated value of $55,000. If the RRSP was earning 3.50% compounded monthly, what was the size of the quarterly deposits?