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- 3.50 McCarthy Construction is trying to bring the company - funded portion of its employee retirement fund into compliance with HB-301. The company has already deposited $500,000 in each of the last 5 years. If the company increases its deposits beginning in year 6 by 15% per year each year through year 20, how much will be in the fund immediately after the last deposit, provided the fund grows at a rate of 12% per year? Solve using (a) tabulated factors, and (b) a spreadsheet.Question 2 A consultant advises that a fund pays out $100,000 at the end of 5 years. Provided $12,000 is invested in the fund at the start of each year, beginning immediately and continuing up to and including the investment at the start of year 5, what is the annual interest on this investment? What would be the equivalent uniform annual amount if the money was invested at the end of each year instead of the beginning? Clearly show your working methods and calculations.5. A scholarship fund pays out 50,000 annually beginning n years from now. To make this go according to plan, annual deposits of 10,000 are made starting today. The credits interest at an annual effective rate of 3% for the first n years and 6.881052981% thereafter. Find n.
- A company wants to save GH¢100000 over the next 5 years so that they can expand theirplant facility. How much must be deposited at the end of each year if their money earnsinterest at j1 = 6%? Construct a complete sinking-fund schedule.3.50 McCarthy Construction is trying to bring the company-funded portion of its employee retire- ment fund into compliance with HB-301. The company has already deposited $500,000 in each of the last 5 years. If the company increases its deposits beginning in year 6 by 15% per year each year through year 20, how much will be in the fund immediately after the last deposit, pro- vided the fund grows at a rate of 12% per year?2/Gamma Corporation is considering an investment of $518,000 in a land development project. The investment will yield cash inflows of $220,000 per year for five years. The company uses a discount rate of 9%. What is the net present value of the investment? Present value of an ordinary annuity of $1: 8% 9% 10% 0.909 0.926 1.783 1 0.917 1.759 1.736 2.577 3.312 3.993 3 2.531 2.487 4 3.24 3.17 3.89 3.791
- The following expenses will be incurred by company X: next year = P50k, 2015 = P70k , 2016 = P100k and 2017 = P150k. To accumulate these sums, a fund is established by making equal year end deposits starting 2010 to 2015. If the fund earns 15% compounded annually, what is the required amount deposit? Select one: a. P42.375.716 b. P30,486.388 c. P37,455.777 d. P47,375.7771. (From section 6.1) SouthWestern airlines sets up a sinking fund so that they will have $75,500 to pay for a replacement piece of equipment in 15 years when the current equipment will be sold for scrap. If they make deposits into the account at the beginning of every 3 months for 15 years, and the investment account pays 4.4% interest compounded every 3 months, what will the quarterly deposit be to reach their goal? (a) Which formula will you use? Circle one. Annuity Payout-Annuity (b) What are the following variables that we will need for the formula? PMT = n = t = A or Po = r = (c) Write the formula you will use with the numbers plugged in below. (d) Solve using your calculator or technology and round to two decimal places. Work is not required here. Write the answer here and state which variable you solved for. (e) Using your own words, describe what you found by solving the equation in terms of the word problem given.A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 8 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 6.1% compounded quarterly? (Round your answers to the nearest cent.) $11731.10 x How much interest would they earn over the life of the account? $ 170756.04 X Determine the value of the fund after 2, 4, and 6 years. 2 years $99013.71 X 4 years $210771.88 X 6 years $336914.93 X How much interest was earned during third quarter of the 4th year?
- 5. (1 s) Fund A is invested at an effective annual interest rate of 5%. Fund B is invested at an effective annual interest rate of 4%. At the end of 15 years, the total in the two funds is $8000. At the end of 30 years, the amount in Fund A is twice the amount in Fund B. Calculate the total in the two funds at the end of 20 years. Solution:4. Luxury Yacht company is preparing to buy a new yacht estimated to cost $750000 by making equal payments at the end of every three months into a sinking fund for six years. Interest earned by the fund is 7.5% compounded quarterly. 3 (a) What is the size of the quarterly payment made to the sinking fund? (b) How much of the maturity value of the fund will be interest? (c) What is the accumulated value of the fund after two years? (d) How much interest will the fund earn in the 15th payment interval?8. An education fund will offer a P40, 000 annual scholarship for the first five years, a P60, 000 scholarship for the next five years, and a P90, 000 scholarship after that. One year before the first scholarship is given out, the fund will be established. Interest is paid on the fund at a rate of 4 1/2 percent. a. What sum of money must be deposited now? b. What is the amount left in the fund after fifth P40, 000 was withdrawn? c. What is the amount left in the fund after the fourth P60, 000 was withdrawn?
