Question 1194197: . A ₱1.5M trust fund is created by depositing ₱40,000 quarterly at 16%
compounded every three months.
a. How many regular deposits are needed?
b. How much is in the fund at the end of 4 years?
c. What is the interest earned at the end of 5 years?
d. What is the increase in the fund on the 12th deposit?
e. What additional deposit should be made after the last regular
deposit is made?
f. Construct a sinking fund schedule.
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! answers to your questions are below:
a. How many regular deposits are needed?
there would be 22 regular deposits of 40,000 each.
b. How much is in the fund at the end of 4 years?
4*4 = 16 quarters.
the amount of money in the fund at the end of 4 years (16 quarters) is equal to $872,981.25.
c. What is the interest earned at the end of 5 years?
5*4 = 20 quarters.
interest earned at the end of 5 years (20 quarters0) is equal to $391,123.14.
d. What is the increase in the fund on the 12th deposit?
after the 12th deposit, the increase in the fund is equal to $601,032.22 minus $539,454.06 = $61,578.16.
this increase is interest earned of $21,578.16 plus the normal deposit of $40,000.
e. What additional deposit should be made after the last regular
deposit is made?
the additional deposit that should be made after the last regular deposit of 40,000 is equal to $54,796.75.
f. Construct a sinking fund schedule.
sinking fund schedule is shown below.
let me know if you have any questions.
theo
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