Dobsen Door Manufacturer s sets up sinking fund to raise $75000 to pay off the maturity value of a three year note. If the sinking fund earns 3.8% compounded monthly how much should they set aside each month

Q: A fund is established by depositing P30,000 every beginning of 3 months for 2 years. If money is…

A: The amount of fund after final deposit can be calculated with the help of future value of annuity…

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: At the beginning of each month, P 200 is deposited into a retirement fund. The fund earns 6%…

A: An annuity is a series of equal payments made or received at regular intervals. When the cash flows…

Q: How much money can be withdrawn at the end of 15 years if: a. $2,000 is deposited at the end of each…

A: The future value of the deposit is the value of the current deposits on a future date based on the…

Q: A 15-year, $500,000 loan will be repaid by the sinking fund method. Interest only must be paid at…

A: A sinking fund increases a company's creditworthiness, it allows a small corporation to offer a…

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

A:

Q: McKinnon's Machinery sets aside $4000.00 at the beginning of every six months in a fund to replace…

A: Given, $4000 is made at the beginning of every six months. Rate is 8% compounded monthly

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: Ten payments of 1,000 are made at the beginning of the each year for 10 years. The payments earn…

A: Time value of money is a financial management concept where the value of money today is not equal to…

Q: An engineer wishes to set up a special fund by making uniform semiannual end-of-period deposits for…

A: The net amount of cash and cash equivalents being transferred in and out of a company is referred to…

Q: John borrows $10,000 for 10 years and uses a sinking fund to repay the principal. The sinking fund…

A: Using excel RATE function

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: 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: 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: A borrows $12,000 for 10 years and agree to make semiannual payments of $1,000. The lender receives…

A: Here,

Q: Whatis the future sum of 1,900, given that it will be held in the bank for 25 years and earn 17…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Determine the value at the end of five years of a $7,000 investment (today) in a bank certificate of…

A: Future Value = Present Value * (1+rate)^n Where, Rate = 9%/2 = 0.045 n = no. of compounding period =…

Q: $150,000 is deposited in a fund that pays 5% annual compound interest for 2 years, 3% annual…

A: There are two methods of charging interest on loans. One is the simple interest method and other is…

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: The company sells products to a customer for $70,000 and will receive $10,000 at the end of each of…

A: Present value means value of cash flow that arise in future , by applying specific discounting…

Q: A company has to retire 500,000 debenture of 8% interest 10 years from today. The company plans to…

A: Sinking fund is created to accumulate fund which can be used to retire debt at maturity. In this…

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: A company has retire 500,000 debentures of 8% interest 10 years from today. The company plans to put…

A: Sinking fund is created to retire debt of $500,000 after 10 years which would earn an interest of…

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: A 10,000 loan is paid off over 10 years; interest is 6 percent effective. The borrower uses a…

A: Sinking funds are funds which are set aside for the repayment of a particular debt or loan.

Q: 7. A fund is established by depositing P30,000 every beginning of 3 months for 2 years. If money is…

A: Quarterly deposit (P) = P 30,000 Interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3% Period…

Q: You have $5,000 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent…

A: Data given:: Amount = $5000 Regency Bank offers = 15% compounded monthly (15%/12 = 1.25%) King Bank…

Q: the beginning of each month, $200 is deposited into a retirement fund. The fund earns 6% annual…

A: Compound Interest: It is the amount which is included in the principal amount year to year till its…

Q: Dhofar Insurance Company has made an investment in another company that will guarantee it a cash…

A: Given: Cash flows = OMR 37,250 Discount rate = 15% Years = 5

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: Francis deposits P 100,000 into a fund today and P 200,000 fifteen years later. Interest is credited…

A: Deposit today (D0) = P 100000 Deposit after 15 years (D1) = P 200000 Discount rate for first 10…

Q: bank pays 5.25 percent compounded monthly on certificate accounts running for 6 years. Using 365…

A: The accumulated sum of money received after a certain period by making a deposit or investment at a…

Q: At the beginning of each month, $400 is deposited into a scholarship fund. The fund earns 5% annual…

A: Future Value can be calculated using FV function in excel FV (rate, nper, pmt, [Pv], [type]) Rate…

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: 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: Handwritten: An 11-year annuity pays $1,800 per month, and payments are made at the end of each…

A:

Q: On January 1, you deposited $6,000 in an investment account. The account will earn 10 percentannual…

A: 1. . 1 Future value  =Present value * (1+Interest rate)No. of years…

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: 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: 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: Ahmad is making $1,000 monthly deposits into a fund that pays interest at a rate of 6% compounded…

A: We need to calculate future value of an ordinary annuity. here annuity is a monthly deposit of…

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%…