Ricky Fowler borrowed $70,000 on March 1, 2018. This amount plus accrued interest at 6% compounded semiannually is to be repaid March 1, 2028. To retire this debt, Ricky plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2023, and for the next 4 years. The fund is expected to earn 5% per annum. Instructions How much must be contributed each year by Ricky Fowler to provide a fund sufficient to retire the debt on March 1, 2028?

Q: Jessica made equal deposits at the beginning of every 3 months into an RRSP. At the end of 8 years,…

A: Using excel PMT function

Q: Juan invested $10,500 into a fund earning 7.50% compounded monthly. She plans to withdraw $700 from…

A: Working note for calculations. Note for Converting Quarter into years:- Number of year to deplete =…

Q: The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31,…

A:

Q: today

A: Formula to calculate FV of annuity: If payment done at the beginning of the year: FV =…

Q: On January 1, 2019, Joan Campbell borrows $20,000 from Susan Rone and agrees to repay this amount in…

A: Annuity: An annuity is referred as a sequence of payment of fixed amount of cash flows that occurs…

Q: Anton deposits P400,000 today and another P200,000 in 6 years into a fund paying simple interest of…

A: Simple interest is a method of calculating the interest charged on a loan or the interest receivable…

Q: What is the amount of the payments that Tom Brokaw must make at the end of each of 8 years to…

A: Amount required = $70,000 Interest Rate(r) = 8% Years(n) = 8 Let Annual Payments = P

Q: May deposits PhP 20,000 into a fund at the beginning of each year for 10 years. At the end of 15…

A: This is a classic case of an annuity due, annuity perpetuity, annuity deferrals. First, we will…

Q: Clearlake Optical has a $50,000 note that comes due in 6 years. The owners wish to create a sinking…

A: Future Value = $50,000 Time period = 6 Years Interest rate = 3.5%

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: On June 1st, 2014 Brandon invested $4 500 in a GIC at an annual interest rate that was compounded…

A: In compound interest, interest earned during first period is added to the principal for computation…

Q: Alex receives level payments at the beginning of each year for 5 years. He deposits the payments…

A: Reinvestment is the practice of using dividends, interest, or any other form of the income…

Q: Aika wishes to set aside a total of P60,000 as savings for the year 2022. She plans to deposit her…

A: A. On Deposit of P30,000 made on June 1, 2022, interest will accrue for 7 months and On Deposit of…

Q: Caleb invested $12,500 in a fund earning 7% compounded quarterly. She withdraws $650 from the fund…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: On January 1, 2020, Flannagan Fencing Corp. establishes a debt retirement fund to pay off a $500,000…

A: The mathematical equation is:

Q: Holly invested $11,000 in a fund earning 6% compounded quarterly. She withdraws $900 from the fund…

A: Annuity means finite no. of payments which are same in size and deposited or withdrawn in equal…

Q: Shane invested $11,000 in a fund earning 5.5% compounded monthly. He will withdraw $800 from the…

A: Given, Shane invested $11000 in a fund earning 5.5% compounded monthly at the end of first 4 years…

Q: Clearlake Optical has a $50,000 note that comes due in 6 years. The owners wish to create a sinking…

A: Given Information Interest rate = 2.5% compounded semi-annually Time Period = 6 years Accumulated…

Q: Clearlake Optical has a $50,000 note that comes due in 6 years. The owners wish to create a sinking…

A: Sinking fund is a fund where individuals set a side certain sum of money on a regular basis for…

Q: 7. To accumulate Php 85 250, Joanna needs to place equal deposits at the end of every 3 months in a…

A: Given: Future Value of annuity payment (FVA) = Php 85250 Interest rate = 8% compounded quarterly…

Q: Samuel David wants to make 5 equal annual withdrawals of $8,000 from a fund that will earn interest…

A:

Q: Georgia deposits $4,000 every three months for five years. The first deposit is made on March 31,…

A: Money on December 31, 2020, immediately after her last deposit = Quarterly deposit x Factors for…

Q: On January 1, Alan King decided to transfer an amount from his checking account into aninvestment…

A: Present value: It refers to the current value of the sum of money or the series of cash flows that…

Q: quarterly. Find the amount available in this fund after 10 years

A: Quarterly payment is $30,000. Maturity period is 10 years. Rate of interest is 6%. Compounding…

Q: Candice Alvarez is investing $397,300 in a fund that earns 15% interest compounded annually. Click…

A: Yearly withdrawals = Total amount invested / Present value factor Note: Present value factor means…

Q: Diego made end of quarter deposits of $1,650 into a retirement fund at 6.50% compounded monthly for…

A: Annuity means a series of finite number of payments which are the same in size and made in equal…

Q: Amy will need PHP 1.75M on July 4, 2015. To prepare for this, she places equal deposits at the end…

A: Future value required on July 4 2015 (FV) = PHP 1,750,000 Interest rate (r) = 8% Number of annual…

Q: Otto Co. borrows money on April 30, 2019, by promising to make four payments of $13,000 each…

A: Definition: Time value of money: Time value of money refers to the concept that the value of money…

Q: ner will IKto a special bank account at the end of each of 10 years beginning December 31, 2021.…

A: Future Value of Annuity: It represents the future worth of the present annuity cash flow stream and…

Q: Anne wants to accumulate $25,000 by December 31, 2019. To accumulate that sum, she will make twelve…

A: Future value of annuity formula: FVA=A×1+rmn×m-1rmwhere,r = rate of interestm = fequency of…

Q: (Retirement of Debt) Ricky Fowler borrowed $70,000 on March 1, 2015. This amount plus accrued…

A:

Q: Alan is investing $40,000 in a fund that earns 5% interest compounded annually. Click here to view…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Joey has 750,000 in bank account as of December 31,2018. If he deposited P40,000 in the account at…

A: Interest is the amount paid to the bank against loan taken. It is determined by multiplying the…

Q: annual deposit should BOBOT Company make for four years in order to accumulate the desired amount on…

A: Plan to accumulate = P5,000,000 by July 1,2023  To Make 4 equal annual deposits at interest 10%…

Q: 4) Ashley deposits $500 into an investment fund each January 1 starting in 2005 and continuing to…

A: Annual deposit from Jan 1 2005 = $ 500 Period from Jan1 2005 to Jan 2019 = 14 Years Number of annual…

Q: Adams Inc. will deposit $30,000 in a 6% fund at the end of each year for 8 years beginning December…

A: Future value:   Future value means the value of asset at the specified date in the future or it is…

Q: Determine the present value of P6,800 paid at the end of each subsequent calendar quarter for 7…

A:

Q: May deposits PhP 20,000 into a fund at the beginning of nd of 15 years, she makes an additional…

A: The present value of the future payments to be received will give the the future value of payments…

Q: Ms Smith borrows 5000 at 5% annual effective interest, with payments at end of each year. The lender…

A: A loan amortization table is the schedule of loan repayment which includes the bifurcation of the…

Q: Don Harrison's current salary is $60,000 per year, and he is planning to retire 25 years from now.…

A: Excel Spreadsheet:

Q: Reba Mc Entire wishes to invest $19, 000 on July 1, 2011, and have it accumulate to $49, 000 by July…

A: In the given question we require to calculate the annual rate of interest at which Reba invest its…

Q: Mr Cruz is preparing his retirement at a certain period “n” year from now, he deposits a uniform…

A: Compound amount factor shows the amount that single $1 or annuity of $1 will be the worth when same…