Answer : $4938.80
A sinking fund is a term that can be broadly used to describe putting a fixed amount of money aside at regular intervals for a given time frame and investing this money at a given interest rate with an objective of saving a desired amount of money at the end of the time period.
In finance it's referred to commonly as an annuity payment.
For this question, we can use the formula for Future Value of an annuity to arrive at the answer.
![FVA = P\left [ \frac{(1+r)^{n}-1}{r}\right ]](https://tex.z-dn.net/?f=%20FVA%20%3D%20P%5Cleft%20%5B%20%5Cfrac%7B%281%2Br%29%5E%7Bn%7D-1%7D%7Br%7D%5Cright%20%5D%20%20)
where
FVA = future Value of an annuity
P = periodic payment
r = interest rate per period
n = number of periods
The following information is given in the question:
FV = $120,000
Interest Rate = 8% p.a
No. of years = 5 years
No. of compounding periods in a year = 4
So,
i =0.02
n = 20 ( 5 * 4)
Substituting these values in the FVA equation, we have
![120000 = P\left [ \frac{(1+0.2)^{20}-1}{0.02}\right ]](https://tex.z-dn.net/?f=%20120000%20%3D%20P%5Cleft%20%5B%20%5Cfrac%7B%281%2B0.2%29%5E%7B20%7D-1%7D%7B0.02%7D%5Cright%20%5D%20)
![120000 = P\left [ \frac{0.485947396}{0.02}\right]](https://tex.z-dn.net/?f=%20120000%20%3D%20P%5Cleft%20%5B%20%5Cfrac%7B0.485947396%7D%7B0.02%7D%5Cright%5D%20)
.
Answer:
PUNITIVE DAMAGES.
Explanation:
It is also referred to as exemplary damages. It is awarded to reprimand a defendant in cases where their actions have been particularly harmful or intentional. It acts as a deterrent to anyone that may act wickedly.
Answer:
Becky's loss = $60,000
Ann's loss = $31,068
Explanation:
Assuming a 365 day year, the loss allocation should be as follows:
- Ann (then Scott) 50% x $120,000 = $60,000
- Becky 50% x $120,000 = $60,000
From the 50% that corresponds to Ann:
- Ann = 189/365 x $60,000 = $31,068.49 = $31,068
- Scott = $60,000 - $31,068 = $28,932
Answer:
D. Michael only.
Explanation:
Redemption is a process where a company requires its shareholders to sell a portion of their shares to the company and shareholders are liable to sell the shares. MJJM Inc. has four equal shareholders. Each shareholders has 300 shares. The redemption should also be in equal proportionate. A redemption is considered disproportionate if the shareholder owns less than 50 percent of the stock before redemption which is immediately after the redemption. In this case the redemption is substantially disproportionate for Michael as he has to redeem 150 shares out of 300 shares.
