Compute how much the revised semi-annual payments should

Assignment Help Financial Accounting
Reference no: EM132567989

You are the chairperson of the investment retirement fund for Actors Fund. You are asked to set up a fund of semi-annual payments to be compounded semi-annually to accumulate a sum of Sh.5, 000,000 after 10 years at 8% annual rate (20 payments). The first payment into the fund is to take place 6 months from now, and the last payment is to take place at the end of the tenth year.

Question a. Determine how much the semi-annual payment should be.

On the day after the sixth payment is made ( the beginning of the fourth year), the interest rate goes up to 10% annual rate, and you can earn 10% on the funds that have accumulated as well as on all future payments into the fund. Interest is to be compounded semi-annually on all funds.

Question b. Determine how much the revised semi-annual payments should be after this rate change (there are 14 semi-annual payments remaining). The next payment will be in the middle of the fourth year.

Reference no: EM132567989

Questions Cloud

Policies of american red cross organization : Examine the various personnale practices and policies of the American Red Cross organization
Prepare bank reconcilliation sandhill co : Prepare Bank Reconcilliation Sandhill Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2019
Determine the weighted average number of common shares : Determine the weighted average number of common shares to be used to calculate Oak and Maple's basic earnings per share (EPS) for the year ending
Analyze the voting trends in texas for presidential : Analyze the voting trends in Texas for presidential, gubernatorial, and constitutional amendment elections.
Compute how much the revised semi-annual payments should : Compute how much the revised semi-annual payments should be after this rate change (there are 14 semi-annual payments remaining).
What amount of depreciation expense is recognized : What amount of depreciation expense is recognized for Year Two if the double-declining balance method is applied
Find which of the assumption would be the most reasonable : Find which of the assumption would be the most reasonable? Both cost of goods sold and SG&A expenses as percentage of sale decrease.
Obtain the relevant authoritative literature on accounting : Obtain the relevant authoritative literature on accounting for asset retirement obligations using the FASB Accounting Standards Codification
Explain which is better accountability of measure : Analyze and explain which is a better accountability of measure, external or internal controls or the character of the administrator.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd