![aj0914](/avatars/45265.jpg)
aj0914
04.04.2020 •
Mathematics
A company borrowed $40,000 for 3 years at 6% compounded daily. It will not make any payments on this loan prior to maturity. Find (a) the total future value they will need to accumulate to pay off this debt, and (b) the quarterly sinking fund payment needed to accumulate this maturity value, assuming a 5% rate.
Solved
Show answers
More tips
- L Leisure and Entertainment How to Choose a Program for Cutting Music?...
- A Auto and Moto How to choose the right drive for your BMW...
- L Leisure and Entertainment How to Choose the Perfect Gift for Men on February 23rd?...
- H Health and Medicine How to Treat Whooping Cough in Children?...
- H Health and Medicine Simple Ways to Lower Cholesterol in the Blood: Tips and Tricks...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
- S Style and Beauty Intimate Haircut: The Reasons, Popularity, and Risks...
- A Art and Culture When Will Eurovision 2011 Take Place?...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
Answers on questions: Mathematics
- M Mathematics Need help by thx iejhbeeje...
- M Mathematics You are given the following algorithm: Start with a number and add 2 to it. Double the result. Subtract 3 from that quantity. If an input to this function is n = 3, what...
- M Mathematics Jim bought a new freezer last winter. When he plugged it in at noon the temperature inside the freezer was 21°C. That night the temperature inside the freezer was -15°C....
- H History In what way did world war i affect women s suffrage in the united states? a. the fact that women in other allied countries were allowed to vote women in the united states...
- E English Part B Which evidence from the text best supports the answer to Part A? By the time they were standing, what their bodies had unknowingly sensed turned to sudden consciousness....
- C Computers and Technology Convert 12 bits to bytes...
- H Health Pls look at the picture for the question....
Ответ:
a A=$47,887.81
b.A=$46,430.80
Step-by-step explanation:
a. Given the initial amount is $40,000 with a 3-year term and a 6% rate compounded daily.
-Take 1 year=365 days
#First we calculate the effective interest rate corresponding to the daily compounding;
#We use the calculated effective rate, 0.06183, to solve for the future value as:
Hence, the total future value for a daily compounding is $47,887.81
b. For a sinking fund with a 5% compounded quarterly:
#We calculate the annual effective rate:
#We use the calculated effective rate, 0.05095, to solve for the future value as:
Hence, the future value of the sinking fund is $46,430.80
Ответ:
i am
Step-by-step explanation: