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 Fund Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded 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 Fund Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Future Value (Objective) $ every year 14 8 annually $450,000 TABLE 12:1is attached
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
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 Fund Payment |
Payment Frequency |
Time Period (years) |
Nominal Rate (%) |
Interest Compounded |
Future Value (Objective) |
|---|---|---|---|---|---|
| $ | every year | 14 | 8 | annually | $450,000 |
TABLE 12:1is attached
Transcribed Image Text:Periods
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
-%
1%
1-%
2%
3%
4%
5%
6%
1.98510 1.97040
7%
0.99502 0.99010 0.98522 0.98039 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593
1.95588 1.94156 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326
2.91220 2.88388 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710
3.95050 3.90197 3.85438 3.80773 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213
4.92587 4.85343 4.78264 4.71346 4.57971 4.45182 4.32948 4.21236 4.10020 3.99271
2.97025 2.94099
2
5.41719 5.24214 5.07569 4.91732 4.76654 4.62288
5.89638 5.79548 5.69719 5.60143
6.86207 6.72819 6.59821 6.47199
6.23028
7.01969 6.73274
6.00205 5.78637
6.46321
5.58238 5.38929 5.20637
6.20979 5.97130 5.74664
7.82296 7.65168 7.48593 7.32548
8.77906 8.56602 8.36052 8.16224 7.78611 7.43533
9.73041 9.47130 9.22218 8.98259 8.53020 8.11090
7.10782 6.80169 6.51523 6.24689
7.72173 7.36009 7.02358 6.71008
8% Periods
1
2
3
4
5
19.88798 18.85698 17.90014 17.01121 15.41502 14.02916
20.78406 19.66038 18.62082 17.65805 15.93692 14.45112 13.16300
21.67568 20.45582 19.33086 18.29220 16.44361 14.85684 13.48857
22.56287 21.24339 20.03041 18.91393 16.93554 15.24696 13.79864
23.44564 22.02316 20.71961 19.52346 17.41315 15.62208
67∞a
8
24.32402 22.79520 21.39863 20.12104 17.87684 15.98277 14.37519
25.19803 23.55961 22.06762 20.70690 18.32703 16.32959 14.64303
26.06769 24.31644 22.72672 21.28127 18.76411 16.66306 14.89813
26.93302 25.06579 23.37608 21.84438 19.18845 16.98371 15.14107
27.79405 25.80771 24.01584 22.39646 19.60044 17.29203 15.37245
9
10
8.76048
7.13896
9.38507
10.67703 10.36763 10.07112 9.78685 9.25262
11.61893 11.25508 10.90751 10.57534 9.95400
12.55615 12.13374 11.73153 11.34837 10.63496 9.98565
13.48871 13.00370 12.54338 12.10625 11.29607 10.56312
14.41662 13.86505 13.34323 12.84926 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948
8.30641 7.88687 7.49867
8.86325 8.38384 7.94269 7.53608
9.39357 8.85268 8.35765 7.90378 13
9.89864 9.29498 8.74547 8.24424 14
HDBHS
11
12
16
15.33993 14.71787 14.13126 13.57771 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137
16.25863 15.56225 14.90765 14.29187 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 17
17.17277 16.39827 15.67256 14.99203 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 18
18.08236 17.22601 16.42617 15.67846 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 19
18.98742 18.04555 17.16864 16.35143 14.87747 13.59033 12.46221 11.46992 10.59401 9.81815 20
15
12.82115 11.76408 10.83553 10.01680 21
12.04158 11.06124 10.20074 22
12.30338 11.27219 10.37106 23
12.55036 11.46933 10.52876 24
14.09394 12.78336 11.65358 10.67478 25
13.00317 11.82578 10.80998 26
13.21053 11.98671 10.93516 27
13.40616 12.13711 11.05108 28
13.59072 12.27767 11.15841 29
13.76483 12.40904 11.25778 30
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