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). (Roundyour answer to the nearest cent.)Sinking FundPaymentTime PeriodNominalInterestPaymentFrequencyFuture Value(years)Rate (%)Compounded(Objective)every year148annually$350,000Enter a number. Periods2%1%1%2%3%4%5%6%7%8%Periods11.000001.000001.000001.000001.000001.000001.000001.000001.000001.00000122.005002.010002.015002.02000 2.030002.040002.050002.060002.070002.08000233.015023.030103.045223.06040 3.090903.121603.152503.183603.214903.24640344.030104.060404.090904.12161 4.183634.246464.310134.374624.439944.5061145.050255.101015.152275.20404 5.309145.416325.525635.637095.750745.866606.075506.152026.229556.30812 6.468416.632986.801916.975327.153297.335936.77.105887.213547.322997.43428 7.662467.898298.142018.393848.654028.92280788.141418.285678.432848.58297 8.892349.214239.549119.8974710.2598010.636638.99.182129.368539.559339.75463 10.15911 10.58280 11.02656 11.4913211.9779912.487569.1010.2280310.46221 10.70272 10.94972 11.46388 12.00611 12.57789 13.1807913.8164514.48656101111.27917 11.56683 11.86326 12.16872 12.80780 13.48635 14.20679 14.9716415.7836016.64549111212.33556 12.68250 13.04121 13.41209 14.19203 15.02581 15.91713 16.8699417.8884518.97713121313.39724 13.80933 14.23683 14.68033 15.61779 16.62684 17.71298 18.8821420.1406421.49530131414.46423 14.94742 15.45038 15.97394 17.08632 18.29191 19.59863 21.0150722.5504924.2149214

Sinking fund is the amount kept aside for paying a loan or debt. Sinking fund enables the business…

Answered: 1 to calculate the amount (in $) of the…

1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity).

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

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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
Time Period
Nominal
Interest
Payment
Frequency
Future Value
(years)
Rate (%)
Compounded
(Objective)
every year
14
8
annually
$350,000
Enter a number.

Periods
2%
1%
1%
2%
3%
4%
5%
6%
7%
8%
Periods
1
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1
2
2.00500
2.01000
2.01500
2.02000 2.03000
2.04000
2.05000
2.06000
2.07000
2.08000
2
3
3.01502
3.03010
3.04522
3.06040 3.09090
3.12160
3.15250
3.18360
3.21490
3.24640
3
4
4.03010
4.06040
4.09090
4.12161 4.18363
4.24646
4.31013
4.37462
4.43994
4.50611
4
5.05025
5.10101
5.15227
5.20404 5.30914
5.41632
5.52563
5.63709
5.75074
5.86660
6.07550
6.15202
6.22955
6.30812 6.46841
6.63298
6.80191
6.97532
7.15329
7.33593
6.
7
7.10588
7.21354
7.32299
7.43428 7.66246
7.89829
8.14201
8.39384
8.65402
8.92280
7
8
8.14141
8.28567
8.43284
8.58297 8.89234
9.21423
9.54911
9.89747
10.25980
10.63663
8.
9
9.18212
9.36853
9.55933
9.75463 10.15911 10.58280 11.02656 11.49132
11.97799
12.48756
9.
10
10.22803
10.46221 10.70272 10.94972 11.46388 12.00611 12.57789 13.18079
13.81645
14.48656
10
11
11.27917 11.56683 11.86326 12.16872 12.80780 13.48635 14.20679 14.97164
15.78360
16.64549
11
12
12.33556 12.68250 13.04121 13.41209 14.19203 15.02581 15.91713 16.86994
17.88845
18.97713
12
13
13.39724 13.80933 14.23683 14.68033 15.61779 16.62684 17.71298 18.88214
20.14064
21.49530
13
14
14.46423 14.94742 15.45038 15.97394 17.08632 18.29191 19.59863 21.01507
22.55049
24.21492
14

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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 FundPayment PaymentFrequency Time Period(years) NominalRate (%) InterestCompounded Future Value(Objective) $ every year 14 7 annually $750,000
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 Periods (years) Nominal Rate (%) Interest Compounded Future Value (Objective) $______ every year 14 8 annually $350,000
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 $ 27658 x Payment Frequency every year Time Period (years) 14 Interest Nominal Rate (%) Compounded annually 8 Future Value (Objective) $750,000
Solve by using the sinking fund or amortization formula. (Round your answer to the nearest cent.) Sinking fund payment (in $) Sinking FundPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Value(Objective) $ every 3 months 4 6.0 quarterly $7,000
Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the given conditions. (Round your answer to the nearest cent.) FV = $700,000, r = 7.2%, compounded semiannually for 45 years $
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. $21,657 to be accumulated in 4 years; quarterly payments of $1225.
Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. $22,000; money earns 5% compounded semiannually for 16 y years $456.90 $418.15 $243.49 O $436.91
Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the given conditions. (Round your answer to the nearest cent.) FV = $1,200,000, r = 4.9%, compounded quarterly for 45 years $
Solve by using the sinking fund or amortization formula. (Round your answer to the nearest cent.) Sinking fund payment (in $) Sinking Fund Payment $ Payment Frequency every 3 months Time Period (years) 6 Nominal Rate (%) 6.0 Interest Compounded quarterly Future Value (Objective) $9,000
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. $29,488 to be accumulated in 5 years; quarterly payments of $1275. %- The interest rate needed is approximately (Type an integer or decimal rounded to two decimal places as needed.)
Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer to the nearest cent.)$ Amount Needed A Frequency n Rate r Time t $50,000 semiannually 2% 10 yr
Consider an amount of 25,000 in a fund today. October 25, 2022. DETERMINE ITS value on the specified date given: 1. January 25, 2024 at 3.42% annual effective interest

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