How much should your monthly deposit be

Assignment Help Accounting Basics
Reference no: EM133068883

Question - You deposit $1,200 at the end of each quarter in an account earning 8% compounded quarterly. Unfortunately, at the end of 15 years, you lost your job and are unable to make any more deposits, but you let the money stay in the account and accumulate interest until you find a new job. After searching for 2 years, you were hired by your dream company with a higher salary! Your daughter graduates high school in 4 years, and you want to start saving up for her to go to college. You start making deposits (in the same account) at the end of each month until she graduates from high school. How much should your monthly deposit be so that you can withdraw $60,000 at the beginning of each year for the 4 years she will be in college?

Reference no: EM133068883

Questions Cloud

Calculate duration of the bond : Consider a 3-year bond with 13 percent semi-annual coupon payments and currently priced to yield 12 per cent per annum.
Calculate duration of the bond : Consider a 3-year bond with 13 percent semi-annual coupon payments and currently priced to yield 12 per cent per annum.
Determine Towson Company Net Cash Flows : The following information is related to Towson Company's fiscal year 2020. Determine Towson Company's Net Cash Flows from Operating Activities
What is the total amount of interest earned on the account : Fredrick deposits $165 at the beginning of each month semiannually for 15 years. What is the total amount of interest earned on the account
How much should your monthly deposit be : How much should your monthly deposit be so that you can withdraw $60,000 at the beginning of each year for the 4 years she will be in college
What is non-controlling interest : What is non-controlling interest? How is it classified on the balance sheet of a parent company? Locate a company that has consolidated financial statements
Prepare extracts of the statement of financial position : Prepare extracts of the statement of financial position as at 31 December 2020 and the statement of profit or loss
What treatment does require for this event : A number of items are reflected at a cost greater than net realisable value with a material effect on the accounts. What treatment does AASB 110 require
Determine the bonus : BTS Corporation provides its unit managers with a 12% bonus depending on its unit's performance at year-end. Determine the bonus

Reviews

Write a Review

Accounting Basics Questions & Answers

  Explain primary advantages applying direct write-off method

Based on the information in the video, discuss the primary advantages and disadvantages of applying the direct write-off over the allowance method of writing off accounts.

  On september 1 2011 miami corporations common stock was

on september 1 2011 miami corporations common stock was selling at a market price of 25 per share. on that date miami

  On january 1 2013 johnstone leased an office building terms

1.on june 30 2013 the johnstone company purchased equipment from genovese corp. johnstone agreed to pay genovese 19000

  Flexed budget performance report

Jane's travel budget for October was $330, based on her plan to drive 1,500 miles at a cost of $0.22 per mile. During October, she actually drove 1,250 miles at a cost of $290. A flexed budget performance report would show a variance of:

  Venture capital funding to launch your new invention

You are an entrepreneur that has just received full Venture Capital funding to launch your new invention. This is a plug-in electric unit that you can slip under any object or person which will levitate the object or person from 1 to 6 inches abov..

  What is the opportunity cost

What is the opportunity cost of not taking advantage of the discount associated with purchases made under the following terms: 2/10, n/30

  Risk of diversion of customer receipts

Which of the following internal controls most likely would reduce the risk of diversion of customer receipts by an entity's employees?

  Determine the fees billed to customers on account

On October 1, theaccounts receivable account balance was $115,800. During October, $449,600 was collected from customers on account. Assuming the October 31 balance was $130,770 determine the fees billed to customers on account during October.

  How much is the consolidated gain on sale

Borland holds the land until December 31, 2019 when it sells it to third parties for $150,000. How much is the Consolidated Gain on Sale for 2019

  On december 15 ms corne amp co recorded bankcard sales of

part 1 complete all the steps of journalizing based on the information provided below.on december 15 ms. corne amp co.

  Two wheels operates on a fiscal year beginning january 1 at

part 1 the following table uses the four inventory costing method and displays the cost of ending inventory for click

  Explain the direct write-off method and the allowance method

FINANCIAL ACCOUNTING ASSIGNMENT. Explain the direct write-off method and the allowance method of recognizing bad debt expense.

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