Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A) Instead of creating a sinking fund at a bank, a company has its controller create a reserve fund in the company's accounts to which

image text in transcribed

A) Instead of creating a sinking fund at a bank, a company has its controller create a reserve fund in the company's accounts to which a contribution is made each quarter. By so doing, the company can realize a return of 12 percent compounded quarterly. What should be the amount transferred quarterly to the reserve fund to accumulate Tk 10, 000 in 5 years.

(c) A company has borrowed Tk 50,000 at 10 percent compounded quarterly. The debt is to be amortized by equal payments each quarter over 15 years. i) Find the quarterly payment it) How much interest will be paid?

(b) Instead of creating a sinking fund at a bank, a company has its controller create a reserve fund in the company's accounts to which a contribution is made each quarter. By so doing, the company can realize a return off-percent i compounded quarterly. What should be the amount transferred quarterly to the reserve fund to accumulate Tk 10.000 in 5 years. (c) A company has borrowed tk 50,000 al 10 percent compounded quarterly. The debt is to be amortized by equal payments each quarter over 15 years. i) lind the quarterly paynent ) I low much interest will be paid

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions