Calculating the amount of a sinking fund.

A Corporation issues 15,000,000 bonds in to be retired in 20 years. How much must be paid into a sinking fund up front at 4% compounded annually to pay off the total amount due?

The amount of a sinking fund is calculated.

What is this?

By OTA - Overall OTA Rating

Jiong Tu, PhD (IP) - 4.8/5

Purchase Cost Now

$2.19 CAD (was ~$3.99)

Included in Download

Plain text response

Why you can trust BrainMass.com

Your Information is Secure
Best Online Academic Help Service
Students find real academic Success

Sinking Funds and Annuities - Joseph decides that he wants to have $300,000 accumulated in 30 years by making an annual payment at the end of each year that would earn 12% compounded annually. what would his sinking fund payment b ...
Sinking Fund - $6000 is borrowed at 10% compounded semi-annually. The amount is to be paid back in 5 years. If a sinking fund is established to repay the loans and interest in 5 years, and the fund earns 8% compound ...
Time value of money calculations: Amount in the sinking fund - Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual interest. Wha ...
Sinking fund - 9.) A school board issues bonds in the amount of $15,000,000 to be retired in 20 years. How much must be paid into a sinking fund each year at 4% compounded annually to pay off the total amount due? ...
Calculating the size of quarterly payments. - Bill borrows $1000 at 5% compounded annually. He is able to establish a sinking fund to pay off the debt and interest in 7 years. The sinking fund will earn 8% compounded quarterly. What should be ...
Mathematics of Finance - Show each formula and all work. #37: Find the amount of each payment that must be made into a sinking fund to accumulate each amount. (Recall, in a sinking fund, payments are made at the end of e ...
Business Math : Sinking Fund, Payments, Installments and Compond Interest - A company can borrow $100,000 at 10% compounded annually for 10 years. To repay the debt at the end of 10 years, a sinking fund is to be set up at 9% compounded annually. Another lender will provide t ...
Sinking Fund, Compounding Interest and the Time Value of Money - A company wishes to set up a sinking fund in an account that pays 4.3% interest compounded quarterly to repay a debt of $325,000 within 4 years explain to the company how much its payment should be pa ...
Annuity and sink fund - What is the difference between an annuity and a sinking fund? If you were to set up an annuity today to purchase something in 7 years what would it be for? If you were getting 6% compounded annually ...
Present Value of a gold mine - How much should Mr. Graff pay for a gold mine expected to yield an annual return of $20,000 and to have a life expectancy of 20 years, if he wants to have a 15% annual return on his investment and he ...
Annuities and Sinking Funds - Joseph decided to test the numbers by seeing how much money he would accumulate by a retirement age of 65 if he put one paycheck away at the end of each year. Right now that would mean depositing $1, ...
Finite Math - 1. What is the ending balance from an initial deposit of $4,250 at 12% compounded quarterly for 6 years? 2. Find the present value of $5,000 in 5 years at 10% compounded annually. 3. Find the ...
Present Value: How much should he pay for the oil well? - An oil well is expected to yield an annual net return of $25,000 for the next 15 years, after which it will run dry. An investor wants a return on his investment of 20%. He can establish a sinking f ...
Interest, value of annuity, mortgage payment - Please see the attached file. 1. Find the simple interest for $4902 at 9.5% for 11 months. 2. Find the compound amount for $312.45 at 6% compounded semiannually for 16 years. 3. Find the amou ...
Compound interest - What is the ending balance from an initial deposit of $4,250 at 12% compounded quarterly for 6 years? Find the present value of $5,000 in 5 years at 10% compounded annually. Find the value of an ...
Value of a loan - PV = $434000.00, N = 360, PMT = $3991.81, I/Y = 10.57%. If this 30 yr. loan is paid off in 10 yrs. with a balloon payment of $398,025.92. What would this currently 10 57% loan turn out to be? Or ...
Show the formula, the values of the variables in the formula, and the result of the formula ... - I need to understand how to work the problem showing the formula, the values of the variables in the formula, and the result of the formula * Find the value of an annuity where $275 is deposited a ...
Interest, Annuities and the Time Value of Money - Formatted Questions are Attached... Find the future value of the following annuity. $500 deposited at the end of each 6-month period for 8 years; money earns 6% compounded semiannually. Find th ...
Mathematics of Finance - What is the ending balance from an initial deposit of $5,000 at 14% compounded monthly for 4 years? Find the amount of interest earned on a deposit of $1,609.25 at 13% compounded monthly for 90 mon ...
Annuities and Sinking Funds - Joseph wants to deposit $1,500 at year-end for 35 years at 8%. What will his result be? If Joseph deposits $1,000 at the end of each year for the next 5 years at 8% compounded annually, $1,500 at t ...
Sample Probability - I need help towards doing this example. Men Women Boys Girls Survive 332 318 29 27 Died 1360 104 35 18 If one of the Ti ...
Finance : Combinations, Interest, Annuities and Loans - 1) An admissions test given by a university contains 10 true-false questions. Eight or more of the questions must be answered correctly in order to be admitted. a) How many different ways can the ...
Payment amount to reach an investment goal - Instead of borrowing to by a car, Chelsie and her husband Carlos decide to save and pay cash for a car in three years. How much would they have to save each month to accumulate $22,000 if the sinking ...
Finance - John is the beneficiary of a trust fund set up for him by his grandmother. If the trust fund amounts to $20,000 earning 8% compounded semiannually and he is to receive the money in equal semiannual ...
Calculating the future value of a fund. - An employee gets paid at the end of each month and $60 is withheld from her paycheck for a retirement fund. The fund pays 1% per month (equivalent to 12% annually compounded monthly). What amount wi ...