Question
In: Statistics and Probability
Find the interest rate needed for the sinking fund to reach the required amount. Assume that...
Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $40,000 to be accumulated in 11 years; annual payments of $2717
Solutions
Expert Solution
Therefore , from excel solver we get i = 0.0568030382289944
or i = 5.680%
Hence , the interest rate required is 5.680%
orchestra answered 2 years agoRelated Solutions
Find the interest rate needed for the sinking fund to reach the required amount. Assume that...
Find the interest rate needed for the sinking fund to reach the
required amount. Assume that the compounding period is the same as
the payment period.
$30,000 to be accumulated in 10 years; annual payments of
$2322
The interest rate needed is approximately___%.
(Round to two decimal places as needed.)
Find the amount of the payment to me made into a sinking fund so that enough...
Find the amount of the payment to me made into a sinking fund so
that enough will be present to accumulate the following amount.
Payments are made at the end of $95,000; money earns 4% compounded
semiannually for 2 and a half years.
the payment size is $
(do not round until the final answer. then round to the nearest
cent)
1. Describe key features (par value, coupon interest rate, maturity, call provision, sinking fund, required rate,...
1. Describe key features (par value, coupon interest rate,
maturity, call provision, sinking fund, required rate, etc.) of a
bond? 2. What are the key components of a basic bond valuation
model? 3. Distinguish between various types of bond yield concepts:
1) Current yield & Capital gains yield 2) Yield to maturity 3)
Yield to call.
Find the monthly payment R needed to have a sinking fund accumulate the future value A....
Find the monthly payment R needed to have a sinking
fund accumulate the future value A. The yearly interest rate r and
the time t in years are given below. Interest is compounded
monthly.
A=10,000 r=5% t=4
r=
round up to nearest cent
Find the amount of each payment to be made into a sinking fund which earns 7%...
Find the amount of each payment to be made into a sinking fund
which earns 7% compounded quarterly and produces $57000 at the end
of 2.5 years. Payments are made at the end of each period.
The payment size is $___?
Round to the nearest cent.
a) When you establish a sinking fund, which interest rate is better? 7% or 8% b)...
a) When you establish a sinking fund, which interest rate is
better? 7% or 8% b) If you set up a sinking fund, which interest
rate is better? 4% compounded semi-annual or 4% compounded
quarterly
Chapter 12 -Exercise 06 Sinking Fund - Majors Trucking, Inc. Item needed: 18-Wheel Transport Truck Amount...
Chapter 12 -Exercise 06
Sinking Fund - Majors Trucking, Inc.
Item needed:
18-Wheel Transport Truck
Amount needed:
$118,000
Interest rate:
6%
Payment made:
Annually for 5 Years
Sinking Fund Factor:
Payment
Periodic
Interest
Periodic
Payment
Balance at
End of
Period
1
2
3
4
5
1. Premium 2. Times interest earned ratio 3. Sinking fund 4. Market interest rate 5. Discount...
1. Premium
2. Times interest earned ratio
3. Sinking fund
4. Market interest rate
5. Discount
6. Stated interest rate
7. Capital lease
8. Amortization schedule
9. Operating lease
10. Debt to equity ratio
The rate quoted in the bond contract used to calculate the cash
payments for interest.
The lessor owns the asset and the lessee simply uses the asset
temporarily.
Total liabilities divided by total stockholders' equity; measure
a company's risk.
The true interest rate used by investors...
Calculate the amount (in mL) of 0.2023 M NaOH needed to reach the end point of...
Calculate the amount (in mL) of 0.2023 M NaOH needed to reach
the end point of titration, of 0.7246 g hydrocinnamic acid. Note:
in lab, the equivalence point where pKa=pH would be 1/2 of the
amount you calculate for this question. Answer:
What is the monthly sinking fund payments required to accumulate $410,000 after 30 years given that...
What is the monthly sinking fund payments required to accumulate
$410,000 after 30 years given that interest rate is 10.0%?
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