Compute the present value of the pension obligation to

Assignment Help Accounting Basics

Reference no: EM13587459

The company wants to have enough cash invested at December 31, 2016, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to a fund that will earn 11% interest compounded annually. The first contribution will be made on December 31, 2013. Compute the amount of this required annual contribution.

Employee	Annual Payment		Date of First Payment
Tinkers	$	20,000	12/31/16
Evers		25,000	12/31/17
Chance		30,000	12/31/18

Required:

1.	Compute the present value of the pension obligation to these three employees as of December 31, 2013. Assume an 11% interest rate.

Amount of annual contribution.

Reference no: EM13587459

Questions Cloud

Concam manufactuers television sets last month direct : concam manufactuers television sets. last month direct materials costing 500000 were put into production. direct labor

Herbal care corp a distributor of herb-based sunscreens is : herbal care corp. a distributor of herb-based sunscreens is ready to begin its third quarter in which peak sales occur.

Write a balanced equation for the decomposition reaction : write a balanced equation for the decomposition reaction described using the smallest possible integer

On nov 1 2007 you sold some equipment for 2200 you receive : on nov 1 2007 you sold some equipment for 2200. you receive a down payment of 500 and a note for the balance. you are

Compute the present value of the pension obligation to : the company wants to have enough cash invested at december 31 2016 to provide for all three employees. to accumulate

Question hydrogen peroxide h2o2 decomposes according to the : question hydrogen peroxide h2o2 decomposes according to the equation h2o2liquid h2o liquid 12o2 g from the following

The sum of the circumference and height of a cylinder is : 1. an equalateral triangle has an area of 100in2. what is the length of its side?2. the sum of the circumference and

X ltd issued 100 shares of 10 each to raul at a premium of : x ltd. issued 100 shares of 10 each to raul at a premium of 4 per share. only 3.50 per share have been received on

Silver corporation redeems all of alluvias 3000 shares and : silver corporation redeems all of alluvias 3000 shares and distributes to her 1000 shares of gold corporation stock

User Account

All Pages