Create a complete sinking fund schedule and calculate the total payments and interest earned neededfor a fund of $9,000 one year from now. The fund will receive deposits made at the end of every threemonths and earns 5% compounded quarterly.PaymentNumber1234TotalPayment Amout atEnd($) (PMT)NumberNumberNumberNumberTotal PMT =NumberInterest Earned orAccrued($) (INT)NumberNumberNumberNumberTotal INTNumberPrincipal Balance Accumulated atEnd of Payment Interval($) (BAL)NumberNumberNumberNumber

Future value=$9000Interest rate=5%Period one year=1Quarterly interest rate=r=5/4=1.25%Quarterly…

Answered: Create a complete sinking fund schedule…

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 6E

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Similar questions

Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two, $2,500 in year three, $3,000 in year four and $2,000 in year five. What is the NPV using 8% as the discount rate?
The file MutualFunds contains a data set with information for 45 mutual funds that are part of the Morningstar Funds 500. The data set includes the following five variables: Fund Type: The type of fund, labeled DE (Domestic Equity), IE (International Equity), and FI (Fixed Income) Net Asset Value (): The closing price per share Five-Year Average Return (%): The average annual return for the fund over the past five years Expense Ratio (%): The percentage of assets deducted each fiscal year for fund expenses Morningstar Rank: The risk adjusted star rating for each fund; Morningstar ranks go from a low of 1 Star to a high of 5 Stars. a. Prepare a PivotTable that gives the frequency count of the data by Fund Type (rows) and the five-year average annual return (columns). Use classes of 09.99, 1019.99, 2029.99, 3039.99, 4049.99, and 5059.99 for the Five-Year Average Return (%). b. What conclusions can you draw about the fund type and the average return over the past five years?
Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is the NPV using 8% as the discount rate?
Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table: Which of the two mutual funds performed better over this time period?
determine the size of the payments that must be made to a sinking fund in order to accumulate $233,188 if the interest rate is 5.25% compounded quarterly and payments are made for 7 1/4 years. Use TVM solver
Solve by using the sinking fund or amortization formula. (Round your answer to the nearest cent.) Sinking fund payment (in $) Sinking FundPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Value(Objective) $ every 3 months 4 6.0 quarterly $7,000
Determine the interest rate needed to accumulate the following amounts in a sinking fund, with monthly payments as given. 33. Accumulate $56,000, monthly payments of $300 over 12 years 34. Accumulate $120,000, monthly payments of $500 over 15 years
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.
Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. 4) $8900; money earns 5% compounded annually; 13 annual payments Please show all workings step by step.
For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity). (Round your answer to the nearest cent.) Sinking FundPayment PaymentFrequency Time Period(years) NominalRate (%) InterestCompounded Future Value(Objective) $ every year 14 8 annually $450,000 TABLE 12:1is attached
For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity). (Round your answer to the nearest cent.) Sinking FundPayment PaymentFrequency Time Period(years) NominalRate (%) InterestCompounded Future Value(Objective) $ every year 14 7 annually $750,000
What equal series of payments must be paid into a sinking fund in order toaccumulate each given amount?(a) $1,700 in 10 years at 8% compounded semiannually when payments aresemiannual.(b) $9,000 in 6 years at 3% compounded quarterly when payments arc quarterly.(c) $4,000 in 2 years at 12% compounded monthly when payments are monthly.

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