How much money does he need to deposit into the annuity

Assignment Help Accounting Basics
Reference no: EM133158511

Question - Josh plans to set aside money for his young daughter's college tuition. He will deposit money in an ordinary annuity that earns 5.4% interest, compounded quarterly. Deposits will be made at the end of each quarter. How much money does he need to deposit into the annuity each quarter for the annuity to have a total value of $72,000 after 16 years?

Reference no: EM133158511

Questions Cloud

Journalize transactions using the direct write off method : Question - Music Express is a company that sells both car and home stereos. Journalize transactions using the direct write off method
Drawbacks and risks to a broad generic business strategy : Identify a company you know that has a business strategy that is too broad and generic in nature, or too focused. Explain your rationale.
What are some possible changes that can be made : What are some possible changes that can be made to the employee benefits package that would help keep costs under control
Discuss what is required to ensure change readiness : Discuss what is required to ensure change readiness rather than change resistance (use Oakland's figure eight framework to help guide the changes needed moving
How much money does he need to deposit into the annuity : How much money does he need to deposit into the annuity each quarter for the annuity to have a total value of $72,000 after 16 years
What is the cash flow created by the merchandise side : Their early analysis believes the move will have an NPV of -$43.00 million. What is the cash flow created by the merchandise side
What is the npv : The equipment will require the company to hold an extra $59,000 of inventory over the 3-year period. What is the NPV if the discount rate is 12 percent
Define and give examples of off-balance sheet information : Define and give examples of off-balance sheet information. What steps should auditors take if the client has multiple locations being counted
Develop a new stylish version of an electric bike : The project is to develop a new stylish version of an electric bike with new features.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a schedule showing the amount of direct materials

Prepare a schedule showing the amount of direct materials used in production during the year. Prepare a schedule of Cost of Goods Manufactured

  What is the initial cost of the second alternative

What is the initial cost of the second alternative so that the two methods are in the BEP condition with the KPK Horizon if the MARR set is 18%?

  Calculate the savings account balance

Recalculate the savings account balance, using a 6 percent interest rate, and again, using an 8 percent interest rate.

  Fixed selling and administrative expenses

The company sold 35,000 units in the East region and 10,000 units in the West region. It determined that $240,000 of its fixed selling and administrative expenses is traceable to the West region, $190,000 is traceable to the East region, and the rema..

  Find the amount of borrowing costs to be capitalized

Sneezy Company constructs a new head office building commencing on September 1, 2016 and was completed at December 31, 2016. Directly attributable expenditure.

  What relationship does the audit committee have

What relationship does the audit committee have with the external auditors in ensuring earnings management is within acceptable limits

  What are the expected sales for May

The Candle Lab plans to purchase $20,000 of inventory in May. If cost of goods sold are roughly 80% of sales, what are the expected sales for May

  What was Crooked Golf net cash flow

Crooked Golf's most recent income statement shows that net income was $90,000, depreciation was $25,000, What was Crooked Golf net cash flow

  What the net cash flow from operating activities is

Assume the perpetual inventory method is used.What The net cash flow from operating activities as a result of the four transactions is?

  What are wendy adjusted gross income

Wendy is a single taxpayer, whose salary was $62,000 in 2019. What are Wendy's 2019 (a) adjusted gross income; (b) taxable income; and (c) tax liability?

  Compute the optimal order quantity using the eoq model

Compute the optimal order quantity using the EOQ model. Compute a) the number of orders per year and b) the annual relevant total cost of ordering and carrying inventory.

  Prepare the journal entries needed on the book

On April 1, 2014, Seminole Company sold 33,300 of its 11%, Prepare the journal entries needed on the books of Seminole Company

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