Deposits of Php 1500 each were made in a sinking fund at the end of each year. If the fund earned interest at the rate of 6% per annum, what was the principal in the fund immediately after the seventh deposit was made?
Q: Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next following…
A: First deposit = P 1000 Annual increase = P 500 Period = 4 Years Annual interest rate = 10%
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A: Annual interest rate = 8% Future value = P 10,000 Period = 10 Years
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A: Deposit = 10,000 Nominal Rate = 7% Compounded Quarterly Number of compounding periods = 4
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A: Solution: An amount deposited at beginning of every period is known as annuity due. So, future value…
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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: The net amount of cash and cash equivalents being transferred in and out of a company is referred to…
Q: 5. In order to repay a debt of RM20000, a company decided to establish a sinking fund at 5 %…
A: Note: This question contains two questions. The first question (Q5) has been answered below:
Q: Six annual deposits in the amount of $4,000, $3,300, $2,600, $1,900, $1,200 and $500, in that order,…
A: Future Value(FV) is compounded value of present amount at future date.
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A: So in the question asked, We will first list down the important details provided 1) Deposit Amount =…
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…
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A: Below details are given in the question : Present value = $1200 Time period = 5 years Interest rate…
Q: Eight equal deposits of $1,000 are made at the end of each year into a fund paying 8%. a. What is…
A:
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: 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 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…
Q: Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to…
A: Future value (FV) = $39,000 Interest rate = 7% Monthly interest rate (r) = 7%/12 =…
Q: Find the amount of each payment to be made into a sinking fund earning 7 % compounded monthly to…
A: Future value is the worth of the current amount in future date after considering the interest rate…
Q: At the beginning of each quarter, P36,000 is deposited into savings account that pays 6% compounded…
A: Quarterly deposits (D) = P36,000 Interest rate = 6% Quarterly interest rate (r) =…
Q: Determine the present value of the following cash flows; P4,000 at the end of 4th month and every…
A: Given information= P4000 at the end of 4th month and every month thereafter till the 12th Month…
Q: SR 3,479 was deposited in a savings account that pays 10 percent interest compounded annually. How…
A: The future value is the future worth of the amount that will be paid or received at future.
Q: At the end of each quarter-year, for 6 years, $1,200 is deposited into an investment paying 3.4%…
A: At the end of each quarter-year, for 6 years, $1,200 is deposited into an investment paying 3.4%…
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: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…
A: Compounding: It is the practice by which the interest is credited both to an existing principal…
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: Twenty-five thousand dollars is deposited in a bank trust account that pays 3% interest, compounded…
A: Formula to calculate annual withdrawal is: W = A(F/A, i, n)
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: An amount of 50,000 was borrowed at an interest rate of 10% per year and repaid over a 5-year period…
A: Present value of all of future payments considering the interest rate and time period should be the…
Q: A sinking fund is established to discharge a debt of $80,000 in 5 years. If deposits are made at the…
A: The following formula will be used:
Q: Six annual deposits in the amounts of $12,000, $10,000, $8,000, $6,000, $4,000, and $2,000, in that…
A: Amount in the fund after the 6th deposit can be calculated using the formula of future value.
Q: $4,250 was deposited at the end of every six months for 5 years into a fund earning 2.2% compounded…
A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…
Q: Aling Paring started to deposit P2,000 quarterly in a fund that pays 5.5% compounded quarterly.-…
A: The question gives the following information:
Q: Five annual deposits in the amounts of $15,000, $14,000, $13,000, $12,000, and $11,000 are made into…
A:
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: What is the accumulated value of periodic deposits of $5,000 made into an investment fund at the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
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: A mine will have a net annual income of 400,00annually for 15 years. Determine it's value if the…
A:
Q: Determine the value at the end of three years of a $10,000 investment (today) in a bank certificate…
A: The formula to calculate future value is given below:
Q: An amount of ₱234,000 is deposited in a bank paying an annual interest rate of 6.15%, compounded…
A: Solution:- Continuous compounding means that the interest is getting compounded every moment. Future…
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: HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of $55,000.…
A: The periodic payments accumulate interest which is added to the original deposit. The result is that…
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: What deposit made at the beginning of each month will accumulate to $120,000 at 8% compounded…
A: An annuity is a financial term that shows a sequence of periodic cash flows with a fixed amount over…
Q: Five annual deposits in the amounts of $10,000, $8,000, $6,000, $4,000, and $2,000, in that order,…
A: Future Value = Cashflow * (1+rate)^compounding year
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- If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?Eight equal deposits of $1,000 are made at the end of each year into a fund paying 8%. a. What is the present worth, 1 year before the first deposit? b. What is the future worth, immediately after the last deposit? c. What is the future worth, 3 years after the last deposit?A sinking fund is established to discharge a debt of $80,000 in 5 years. If deposits are made at the end of each 6-month period and interest is paid at the rate of 8%, compounded semiannually, what is the amount of each deposit? (Round your answer to the nearest cent.)
- 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.A trust fund is to be formed by depositing ₱4,000 every six months for 25 years in a bank that promises to pay a fixed rate over the entire term. If the amount of the fund at the end of the term is ₱300,000, then the rate compounded semi-annually isA fund of 25000 is to be accumulated by means of deposits of 1000 at the beginning of every year as long as necessary. If the fund earns an effective rate of interest of 8%, find how many regular deposits will be necessary and the size of a final deposit to be made on the last regular deposit.
- A manufacturing firm sets aside P50,000 at the end of each year for 5years in a sinking fund earning 12% interest compounded annually.Prepare a table showing the value of the deposits at the end each year forfive years.If 1000 pesos was deposited in a fund at the beginning of each 3 months for 10 years and money is invested at 6% compounded quarterly, how much is in the fund at the end of 10 years?On January 1, you deposited $6,000 in an investment account. The account will earn 10 percentannual compound interest, which will be added to the fund balance at the end of each year.Required (round to the nearest dollar):1. What will be the balance in the account at the end of 10 years?2. What is the interest for the 10 years?3. How much interest revenue did the fund earn in the first year? the second year?
- £15,500 is invested at time t=0 and a further 6,800 at time t=6. Calculate the value of the fund after 21 years if the rates of interest applicable during this period are 1.7% per month effective for the first 11 years, and thereafter 8.7% per annum nominal payable quarterly for the remaining yearsRed Company invested $10,000 in a fund that was earning interest at a rate of 3.00% compounded semi-annually. After 3 years and 9 months, the company transferred these funds to another investment that was earning interest at 5.50% compounded monthly. a. What is the balance in the fund at the end of 3 years and 9 months? b. What is the balance in the fund at the end of 6 years (from the initial investment)? c. By what amount did the fund grow during the 6 year period?If ₱17,000 is deposited at the end of each year for 16 years in a bank that give 7% interest per year, how much can a person withdraw annually from the fund for 8 years starting 1 year afther the least deposit is made?
