None An endowment fund is set up with a donation of $130,000. If it earns 7.0% compounded monthly, forhow long will it sustain end-of-month withdrawals of $1,300? (Include the final smaller withdrawal.) (Do not round intermediate calculations and round up the number of payments, n, to the next wholenumber.)

Here, Principal, P= $ 130Amount = $ 1300rate, = 0.07let time, months be xAmount, A = $ 1300A=P…

Answered: An endowment fund is set up with a…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 22E

See similar textbooks

Similar questions

An endowment fund is set up with a donation of $170,000. If it earns 5.8% compounded monthly, for how long will it sustain end-of- month withdrawals of $1,700? (Include the final smaller withdrawal.) (Do not round intermediate calculations and round up the number of payments, n, to the next whole number.) Endowment is for year(s) and month(s).
A fund of 25000 is to be accumulated by means of deposits of 1000 at the beginning of every year as long as necessary. If the fund earns an effective rate of interest of 8%, find how many regular deposits will be necessary and the size of a final deposit to be made on the last regular deposit.
Find the amount of each payment to be made into a sinking fund earning 8% compounded monthly to accumulate $51,000 over 8 years. Payments are made at the end of each period The payment size is s (Do not round until the final answer. Then round to the nearest cent.) TE
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 = $1,900,000, r = 9%, compounded monthly for 25 years
Find the amount of each payment to be made into a sinking fund earning 7 % compounded monthly to accumulate $33,000 over 9 years. Payments are made at the end of each period. The payment size is $ (Do not round until the final answer. Then round to the nearest cent.)
An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The discount rate is 9 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5.200? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $6,400? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $10,400? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.., 32.16.) a. Discounted payback period years b. Discounted payback period years c. Discounted payback period years
An investment of 1000 is to be used to make payments of 10 at the end of the first year, 20 at the end of the second year, 30 at the end of the third year, etc., every year for as long as possible. A smaller final payment is paid one year after the last regular payment. The fund earns an effective rate of interest of 4%. Calculate the amount of the smaller final payment R. (Hint: By doing trial and error, one can find that the last full payment is made at the end of 17th year.) 38 39 40 41 42
A lump sum S deposited into either fund X or fund Y will be exactly sufficient to provide a perpetuity of $100 per year with the first payment due at the end of one year. Fund X will earn interest at an effective annual rate of 10% for the first 30 years and 6% thereafter. Fund Y will earn interest at a level effective annual rate of j. In which of the following ranges is j? someone help?
Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly and produces $55,000 at the end of 3.5 years. Payments are made at the end of each period. The payment size is $ . (Round to the nearest cent.)
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.
Please dont answer in spreadsheet format, i wont understand 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. 4) $8900; money earns 5% compounded annually; 13 annual payments
A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the penodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is S

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS