Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 02, 2023

A debt of $1500 bearing at 12% compounded annually is to be discharged by the sinking fund method. If six annual deposits are made

A debt of $1500 bearing at 12% compounded annually is to be discharged by the sinking fund method. If six annual deposits are made into a fund which pays 6% compounded monthly. a. Find the annual interest payment (3 marks) b. Find the size of the annual deposit into the sinking fund. (2 marks) c. What is the annual cost of this debt? (2 marks) d. Construct the sinking fund schedule. (3 marks) Period Interest Sinking Fund Interest Deposit earned Sinking Fund Balance Net amount loan

Step by Step Solution

★★★★★

3.46 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

a Annual interest payment 012 1500 180 b Let the annual deposit be ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Elementary Linear Algebra with Applications

Authors: Bernard Kolman, David Hill

9th edition

132296543, 978-0132296540

More Books

Students also viewed these Accounting questions

Question

★★★★★

There is a 4 % probability that the plane used for a commercial Might has technical problems, and this causes a delay in the flight. If there are no technical problems with the plane, then there is...

Answered: 1 week ago

Question

★★★★★

There is a 4-time restricted reduction of a language L1 to a language L2. Let L2 be in DTIME (3n+ + n 3). What class of DTIME (f(n)) is L1 in? Let L2 be in DTIME(2n 2 + n). What class of DTIME(f(n))...

Answered: 1 week ago

Question

★★★★★

Let L1 and L2 be linear transformations from a vector space V into a vector space W. Let {v1, v2 ... vn} be a basis for V. Show that if L1 (v,) = L2 (v) for i = 1, 2 . . . n, then L1 (v) = L2 (v) for...

Answered: 1 week ago

Question

★★★★★

Suppose that the fixed cost for a product is $400 and the break-even quantity is 80. Find the marginal profit (the slope of the linear profit function).

Answered: 1 week ago

Question

★★★★★

What is the advantage of using budgeted instead of actual costs when determining the overhead rates to employ for allocating the costs of support activities?

Answered: 1 week ago

Question

★★★★★

The air in a house is at 25C and 65 percent relative humidity. Now the air is cooled at constant pressure. The temperature at which the moisture in the air will start condensing is (a) 7.4C (b) 16.3C...

Answered: 1 week ago

Question

★★★★★

2. Notice which students like to work together. The chance to work with friends is often a good reinforcer.

Answered: 1 week ago

Question

★★★★★

a. Create a simple detection system that can be used to solve the juice bar crises. b. What do you think is the optimal role for detection in this problem? The Veggie-Buffet Restaurant is a downtown...

Answered: 1 week ago

Question

★★★★★

Example of Dupont Identity for Delta airlines on a spreadsheet

Answered: 1 week ago

Question

★★★★★

The micrometer (1m) is often called the micron. (a) How many microns make up 1.0 km? (b) What fraction of a centimeter equals 1.0m? (c) How many microns are in 1.0 yd?

Answered: 1 week ago

Question

★★★★★

find matlab code for this Assign the time column from 1 . 5 seconds to 5 . 0 seconds to the variable and the corresponding current column to the variable . This time range corresponds to the index to...

Answered: 1 week ago

Question

★★★★★

a (400-2a) Figure 1.48 Problem 4 4 m T a A 15 mm- D |-- P-17 kN A round steel bar of a length of 400mm and a diameter of 15mm at the middle portion is subjected to an axial tensile force of 17kN....

Answered: 1 week ago

Question

★★★★★

One of the restrictions in this exercise was that you were not allowed to use loops. All of the functions in this exercise could have been implemented with loops instead of list methods. Which do you...

Answered: 1 week ago

Question

★★★★★

Answer the question in terms of kN for the last picture no need to do the other ones with the solution. In problem 2-23, a round tube section 3 mm thick was one of the options to prevent buckling. If...

Answered: 1 week ago

Question

★★★★★

Question 1 (6 marks) Two cables are attached to a wall by a pin at O with the tensions in the cables adjusted to 450 N and 500 N as shown in the following diagram. 450N 30 500N Use the method of...

Answered: 1 week ago

Question

★★★★★

Many people have argued that the continuum of processes described by Garvin is outdated and does not apply to digital businesses. Very often digital businesses do not have equipment, or raw material,...

Answered: 1 week ago

Question

★★★★★

Select all that apply Select all of the effects of sales promotion. Multiple select question. It builds excitement for a product. It builds stronger relationships with retailers. It increases short -...

Answered: 1 week ago

Question

★★★★★

Cleaning Service Company's Trial Balance on December 31, 2020 is as follows: Account name Debit Credit Cash 700 Supplies Pre-paid insurance Pre-paid office rent Equipment Accumulated depreciation -...

Answered: 1 week ago

Question

★★★★★

Let L: Rn Rm be a linear transformation defined by L(x) = Ax, for x in R". Prove that L is onto if and only if rank A = m.

Answered: 1 week ago

Question

★★★★★

Let C = [Cij] be an n x n positive definite symmetric matrix and let V be an n-dimensional vector space with ordered basis S = {u1, u2,... un}. For v = a1u1+ a2u2+...+anun and w = b1u1+b2u2+ ... +...

Answered: 1 week ago

Question

★★★★★

In Exercise 1 write each quadratic form as xT Ax. Where A is a symmetric matrix? (a) (b) (c) 2x1x2 4xx36x2x3

Answered: 1 week ago

Question

★★★★★

A technology store holds a contest to attract shoppers. Once an hour, someone at checkout is chosen at random to play in the contest. Here's how it works: An ace and four other cards are shuffled and...

Answered: 1 week ago

Question

★★★★★

You are three spaces from a win in Parcheesi. On each turn, you will roll two dice. To win, you must roll a total of 3 or roll a 3 on one of the dice. How many turns might you expect this to take?

Answered: 1 week ago

Question

★★★★★

Many states run lotteries, giving away millions of dollars if you match a certain set of winning numbers. How are those numbers determined? Do you think this method guarantees randomness? Explain.

Answered: 1 week ago

Previous Question Next Question