Solution-What is the size of the annual payment into the

What is the size of the annual payment into the fund

Reference no: EM132748895

Questions -

Q1. A debt of $5000 is amortized by making equal payments at the end of every 3 months for 2 years. If interest is 8% compounded quarterly, construct an amortization schedule.

Q2. Ace Machinery wants to provide for replacement of equipment seven years from now, estimated to cost $60 000.00. To do so, the company sets up a sinking fund into which it will pay equal sums of money at the beginning of each of the next seven years. Interest paid by the fund is 4.5% compounded annually.

i. What is the size of the annual payment into the fund?

ii. What is the total paid into the fund by Ace Machinery?

iii. How much of the fund will be interest?

Reference no: EM132748895

Questions Cloud

Cyber crime : Locate at least five scholarly peer-reviewed papers and at least three industry sources such as Websites, whitepapers,

Review the data analytics lifecycle : Summarize your understanding of the identification of potential data sources as part of the Discovery phase.

What is balance in the bad debt expense account at year end : Received a cheque from a customer whose account was previously written off: 3270. What is the balance in the bad debt expense account at year end

Data prep such as hadoop : Discuss how R & Python are different tools than tools that are used for data prep such as Hadoop, Alpine Miner, OpenRefine, and Data Wrangler

What is the size of the annual payment into the fund : Ace Machinery wants to provide for replacement of equipment seven years from now, estimated to cost $60 000.00. What is the size of the annual payment into fund

Regarding the use of confidential company data : What policies could be put in place to ensure employees adhere to safe guidelines regarding the use of confidential company data?

Explain two ways to change designs : What decision must be made when assessing threat problems? Explain two ways to change designs.

Calculate the risk-adjustment performance : Calculate the risk-adjustment performance using the S&P 500 and one other market index that you feel is the best benchmark for your portfolio. Risk adjustment.

Understanding seven layers of computer networks : Understanding the function and responsibilities of each layer of the OSI model will help you to understand how network communications function.

User Account

All Pages

What is the size of the annual payment into the fund

Reference no: EM132748895

Reference no: EM132748895

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT