Question: Solve the following by using the sinking fund formula. Round your answer to the nearest cent. Do not round intermediate calculations. Sinking Fund Payment Payment
Solve the following by using the sinking fund formula. Round your answer to the nearest cent. Do not round intermediate calculations.
| Sinking Fund Payment | Payment Frequency | Time Period (years) | Nominal Rate (%) | Interest Compounded | Future Value (Objective) |
| $ | every month | 1 1/2 | 12 | monthly | 2500 |
You have just been hired as a loan officer at the Eagle National Bank. Your first assignment is to calculate the amount of the periodic payment required to amortize (pay off) the following loan being considered by the bank (use Table 12-2). Round your answer to the nearest cent.
Click here for Table 12-2
| Loan Payment | Payment Period | Term of Loan (years) | Nominal Rate (%) | Interest Compounded | Present Value (Amount of Loan) |
| $ | every year | 12 | 12 | annually | $30,000 |
Solve the following by using formulas.
To establish a "rainy day" cash reserve account, Bonanza Industries deposits $11,000 of its profit at the end of each month into a money market account that pays 1.75% interest compounded monthly. Do not round intermediate calculations. Round your answers to the nearest cent.
a. How much will the account be worth in 2 years?
$
b. How much will the account be worth in 7 1/2 years?
$
Use Table 12-1 to calculate the future value of the following annuity due. Round your answer to the nearest cent.
Click here for Table 12-1
| Annuity Payment | Payment Frequency | Time Period (years) | Nominal Rate (%) | Interest Compounded | Future Value of the Annuity |
| $800 | every 6 months | 9 | 2 | semiannually | $ |
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