A corporation creates a sinking fund in order to have $680,000 to replace some machinery in...

A corporation creates a sinking fund in order to have $680,000 to replace some machinery in 12 years. How much should be placed in this account at the end of each month if the annual interest rate is 3.7% compounded monthly? (Round your answers to the nearest cent.)
$

How much interest would they earn over the life of the account?
$

Determine the value of the fund after 2, 4, and 6 years.

2 years		$
4 years		$
6 years		$

How much interest was earned during the fourth month of the 5th year?

Expert Solution

In case of any doubts or Issues, please comment below

ekkarill92 answered 2 years ago

A corporation creates a sinking fund in order to have $920,000 to replace some machinery in...

A corporation creates a sinking fund in order to have $920,000 to replace some machinery in 12 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 8.3% compounded quarterly? (Round your answers to the nearest cent.) $ How much interest would they earn over the life of the account? $ Determine the value of the fund after 2, 4, and 6 years. 2 years $ 4 years $...

A corporation creates a sinking fund in order to have $370,000 to replace some machinery in...

A corporation creates a sinking fund in order to have $370,000 to replace some machinery in 8 years. How much should be placed in this account at the end of each week if the annual interest rate is 3.5% compounded weekly? (Round your answers to the nearest cent.) $ How much interest would they earn over the life of the account? $ Determine the value of the fund after 2, 4, and 6 years. 2 years $ 4 years $...

Frozen Ltd purchased machinery on 1 July 2011 for $680,000. The machinery is expected to have a...

Frozen Ltd purchased machinery on 1 July 2011 for $680,000. The machinery is expected to have a useful life of 20 years and a residual value of $80,000. The firm accounts for the machinery using the revaluation model. The fair value of the machinery on 30 June 2012 is $699,400. The machinery was sold for $500,000 cash on 31 December 2013. No revisions are made to the useful life and residual value at the time of the revaluations. Record depreciation of the machinery for...

On January 1 Dixon Corporation sold $400,000 of 10-year sinking fund bonds. The corporation expects to...

On January 1 Dixon Corporation sold $400,000 of 10-year sinking fund bonds. The corporation expects to earn 15% on the sinking fund balance and is required to deposit $23,000 at the end of each year with the trustee. Record the following entries:a. The first deposit.b. Earnings of $3,450 at the end of first period.c. Payment of bondholders with sinking fund having a balance of $402,000.

Blossom Industries management is planning to replace some existing machinery in its plant. The cost of...

Blossom Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses an 18 percent discount rate for projects like this. Should management go ahead with the project? Year Cash Flow 0 -$3,029,000 1 836,610 2 874,500 3 1,100,000 4 1,373,260 5 1,589,400 What is the NPV of this project? (Enter negative amounts using negative sign e.g. -45.25. Do...

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

Port Moody Inc. is looking to invest in some machinery to replace its current malfunctioning one....

Port Moody Inc. is looking to invest in some machinery to replace its current malfunctioning one. The new machine, which costs $ 1,000,000, would increase annual revenue by $ 500,000 and yearly expense by $ 150,000. The machine is estimated to have a useful life of 5 years. Calculate the accounting rate of return.

Rockyford Company must replace some machinery that has zero book value and a current market value...

Rockyford Company must replace some machinery that has zero book value and a current market value of $2,000. One possibility is to invest in new machinery costing $42,000. This new machinery would produce estimated annual pretax cash operating savings of $16,800. Assume the new machine will have a useful life of 4 years and depreciation of $10,500 each year for book and tax purposes. It will have no salvage value at the end of 4 years. The investment in this...

After 10 years your business need Tk. 10,00,000. You maintain a sinking fund and deposit some...

After 10 years your business need Tk. 10,00,000. You maintain a sinking fund and deposit some money at the beginning of each year for 10 years. If the interest rate is 5% then how much must the payment be to attain your requirements? Mr. Mannan borrow Tk. 5,00,000 from a bank for purchasing a shop. If he pays annual equal installments for 10 years at 8% interest rate on outstanding balance. Then what is the installment amount if he makes...

Daltrey Corporation purchased some machinery and agreed to pay the seller $5,000 at the end of...

Daltrey Corporation purchased some machinery and agreed to pay the seller $5,000 at the end of this and the next four years. Assuming 8% compounded annually, (1) What is the acquisition cost of the machinery (what is its present value?), and (2) How much interest expense will Daltrey Corporation incur over the five years? -The acquisition cost of the machinery is ? - The amount of interest expense over the five years is? (use an appropriate alebraic formula to calculate...

Question