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i just need the answers for the parts in the red circles v but i still need the answer for the first question above^ Question
i just need the answers for the parts in the red circles v but i still need the answer for the first question above^
Question 4 of 5 Johnston Industries Ltd. plans to replace a warehouse in 12 years at an estimated cost of $300,000. To pay for the replacement, a sinking fund has been established into which equal payments are made at the end of every quarter. The fund is growing at 9.00% compounded quarterly. a. What is the size of the quarterly payments? 50.00 Round up to the next cent b. What is the sinking fund balance at the end of 4 years? $0.00 Round to the nearest cent Wynter Tires Inc. issued $300,000 worth of 5.00% bonds to purchase new equipment for its showroom. It planned to retire this debt in 10 years on maturity by setting up a sinking fund and making equal deposits into it at the end of every six months. a. If the fund was earning 4.00% compounded semi-annually, calculate the periodic cost of the debt. $19.847.02 Round the sinking fund payment up to the next cent b. Construct a partial sinking fund schedule, showing the details for the first two and last two payments, and the totals of the schedule. For answers: Round to the nearest cent Payment Fund Balance Payment Period Book Value Interest Earned Increase in the Fund 0 50.00 $300,000.00 $12.347.02 S0.00 1 $12,347.02 $12.347.02 $287.652.98 $12.347.02 $248.94 $12,593.98 $24.940.98 $275,059.02 2 .. !! 18 $0.00 X $0.00 19 12,347.02 S5, 287.66 $17.634.58 S282,012.83 $17.987.17 20 $12.347.02 $5,640.28 $17,987.28 $300,000.00 $0.00 $12.347.02 $53059.71 $300,000.11 TotalStep by Step Solution
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