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Sinking fund formula found to nearest cent annual payments with 6% interest compounded annually for 5 years and will accumulate 8400
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- Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?Use the sinking fund formula shown to the right to determine the monthly payment needed to accumulate $620,000 with 8% interest are compounded monthly for 32 years. p=Arn1+rnnt−1 The monthly invested payment is Determine the interest rate needed to accumulate the following amounts in a sinking fund, with monthly payments as given. 33. Accumulate $56,000, monthly payments of $300 over 12 years 34. Accumulate $120,000, monthly payments of $500 over 15 years
- Sinking FundPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Value(Objective) $ every 3 months 3 6.0 quarterly $9,000Use the accompanying sinking fund formula to determine the payment needed to reach the accumulated amount. Monthly payments with 7% interest are compounded monthly for 21 years to accumulate $620,000 p=Arn1+rnnt−1Using the sinking fund table, complete: Required Amount Needed Freq of Payment Years Interest Rate Payment Amount end of each period $40,000 Quarterly 7 8%
- determine the size of the payments that must be made to a sinking fund in order to accumulate $233,188 if the interest rate is 5.25% compounded quarterly and payments are made for 7 1/4 years. Use TVM solverUse the sinking fund formula shown to the right to determine the semiannual payments with 6% interest are compounded semiannually for 4 years to accumulate $17,000. p=Arn1+rnnt−1 The semiannual invested payment is $Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly and produces $44,000 at the end of 3.5 years. Payments are made at the end of each period. The payment size is $_
- Sean's investment of $81,400.00 in a fund matured to $155,777.80 in 8 years. If the interest in the fund is compounded semi-annually, calculate the following rounded to two decimal places. a. Periodic interest rate (i)(i) % b. Nominal interest rate (j)£4,000 is invested at time t=0 and a further 12,000 at t=6. Calculate the value of the fund at the end of 19 years if the rate of interest applicable during this period is 7.7% per annum nominal payable half-yearly for the first 12 years, and 3.3% per quarter year effective thereafter for the remaining years. No tables, Only formulas pleaseTen payments of 1,000 are made at the beginning of the each year for 10 years. Thepayments earn interest at the end of each year at an annual effective rate of 6% during the first 8years and at an annual effective rate of 7% thereafter. Interests can be reinvested at 5% effective.(a) Find the amount in the fund at the end of 10 years.(b) Setup the equation that gives the annual effective yield rate, i, earned (by the ten depositsmade each year) over the 10-year period.