Accumulate the amount given in sinking fund

Assignment Help Financial Management

Reference no: EM131087679

Find the periodic payments PMT necessary to accumulate the amount given in a sinking fund. HINT [See Example 2.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.)

$80,000 in a fund paying 7% per year, with monthly payments for 5 years

PMT=__________

Reference no: EM131087679

Questions Cloud

What is the current share price : Apocalyptica Corporation is expected to pay the following dividends over the next four years: $5.70, $16.70, $21.70, and $3.50. Afterwards, the company pledges to maintain a constant 5.50 percent growth rate in dividends, forever. If the required ret..

Pension plan is annuity with guaranteed return : Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You can afford to put $1,800 per quarter into the fund, and you will work for 40 years before retiring. After you retire, you will be paid a quarterly pen..

Find present value PV of the annuity necessary to fund : Find the present value PV of the annuity necessary to fund the withdrawal given. HINT [See Example 3.] (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals.

What is the annuity worth in terms of single equivalent : An annuity provides for 11 consecutive end-of-year payments for $67000. The average general inflation rate is estimated to be 2% annually, and the market interest rate is 6% annually. What is the annuity worth in terms of a single equivalent amount i..

Accumulate the amount given in sinking fund : Find the periodic payments PMT necessary to accumulate the amount given in a sinking fund. $80,000 in a fund paying 7% per year, with monthly payments for 5 years

Calculate the average daily balance and finance charge : Calculate the average daily balance and finance charge. (Round your answers to the nearest cent.) 30-day billing cycle 9/16 Billing date Previous balance $ 2,000 9/19 Payment $ 60 cr. 9/30 Charge: Home Depot 1,500 10/3 Payment 60 cr. 10/7 Cash advanc..

Shares of common stock outstanding : XYZ corp. currently has 50 million shares of common stock outstanding. Their current market price is $80 per share and have a beta of 1.15. XYZ has $1 billion of bonds outstanding, each with the market value of $1100. The expected return on the S&P 5..

An out-of-the-money call option is one that : An out-of-the-money call option is one that:

What is the initial net cash flow of the machine : Mars, Inc. is considering the purchase of a new machine, which will reduce manufacturing costs by $5,000 annually. Mars will use the MACRS (5-year class) method to depreciate the machine, and it expects to sell the machine at the end of its 5-year li..

User Account

All Pages