Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year, compounded monthly, for 8 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.

Q: A trust fund is to be formed by depositing ₱4,000 every six months for 25 years in a bank that…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

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: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Rebecca made equal deposits at the beginning of every 3 months into an RRSP. At the end of 10 years,…

A: Solution: An amount deposited at beginning of every period is known as annuity due. So, future value…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You invested $7,000 at the end of each quarter for 8 years in an investment fund. If t balance in…

A: Solution: An amount deposited at end of every period is known as ordinary annuity. The formula for…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

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

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: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The PMT is the equal pay that has to paid or received monthly or yearly.

Q: Your company estimates it will have to replace a piece of equipment at a cost of P5,800,000 in 5…

A: Given information: Future cost of equipment amounted to P5,800,000 Number of years is 5 Interest…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: Time taken can be calculated using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The…

Q: Find the amount necessary to fund the given withdrawals. Yearly withdrawals of $1250 for 14 years;…

A: The present value is needed for a withdrawals made at a certain period. It will be taken in order to…

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: Calculate the future sum of $1,200, given that it will be held in the bank for 5 years and earn 14%…

A: Below details are given in the question : Present value = $1200 Time period = 5 years  Interest rate…

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: What deposit made at the beginning of each month will accumulate to $120,000 at 8% compounded…

A: A cash flow diagram is a visual representation of cash inflows and cash outflows over a specified…

Q: What is the present value of a $120,000 cash flow to be received at the beginning of each of the…

A: Amount  of Cash flow = $120000 at the beginning of the year Years(n) = 20 Annual rate(r) = 9%…

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: An amount of 100,000 was borrowed and was to be repaid in 10 instalments at the end of every quarter…

A: Here, Borrowed amount (PV) is 100,000 No. of Quarterly Payment (n) is 10 Uniform Gradient Amount (G)…

Q: In order to accumulate $500,000 after 25 years, calculate the amounts that must be invested at the…

A:

Q: use the appropriate formula to find the future value (in $) of $500 dollars deposited at the…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

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: If P20,000 is invested in a fund that pays 10% compounded annually, how much money will be in the…

A: Answer -    Part 1 -  If P20,000 is invested in a fund that pays 10% compounded annually, how much…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: To calculate the Required payment of sinking fund, PMT function in the excel can be used. PMT(rate,…

Q: Calculate the future value of end-of-quarter payments of $5,000 made for 5 years into an investment…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

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: Calculate the initial amount that would be in a savings account at the beginning of 6 years, given a…

A: Given  Interest rate =  3.14% Number of years = 6 Years Final amount received = 256 Future value is…

Q: Find the periodic payments PMT necessary to accomulate the given account in an annuity account.…

A: The annuity in which fixed amounts are paid at the end of each period is known as an ordinary…

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: 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: 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: 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: Find the amount necessary to fund the given withdrawals  yearly withdrawals of $1150 for 10 years;…

A: Present value of annuity: Annuity payment * Present Annuity Factor of $1 at i% for n years. Where, i…

Q: Calculate the future value of $15,000 received today and deposited for eight years in an account…

A: Future value is the accumulated value of an investment. It is the total of the initial deposit and…

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: 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: 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 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: 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: 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: 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: 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: A deposit of $2,570 is placed into a retirement fund at the beginning of every 6 months for 14…

A: Future value is the value of amount invested today at a future specified period and interest rate.

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.