Required annual investment

Assignment Help Accounting Basics
Reference no: EM13154871

Lisa wants to invest a certain sum of money at the end of each year for five years. The investment will earn 6% compounded annually. At the end of five years, she will need a total of $40,000 accumulated. How should she compute her required annual investment?

a. $40,000 times the present value of a 5-year, 6% ordinary annuity of 1 factor.

b. $40,000 divided by the future value of a 5-year, 6% ordinary annuity of 1 factor.

c. $40,000 times the future value of a 5-year, 6% ordinary annuity of 1 factor.

d. $40,000 divided by the present value of a 5-year, 6% ordinary annuity of 1 factor.

Reference no: EM13154871

Questions Cloud

Preferred stock call premium addressed : In a company with minority interest equity how is the preferred stock call premium addressed?
Average amount of error expected : Correct answerThe "average" amount of error expected in predictions The number of cases that have a non-zero residual The strength of the correlation between X and Y
What is the impact on the underground economy : What is the underground economy? What is the impact on the underground economy of instituting a tax on a certain productive activity?
How many millimoles of acetate would be needed : You need to produce a buffer solution that has a pH of 5.02. You already have a solution that contains 10 mmol (millimoles) of acetic acid. How many millimoles of acetate (the conjugate base of acetic acid) will you need to add to this solution? ..
Required annual investment : Lisa wants to invest a certain sum of money at the end of each year for five years. The investment will earn 6% compounded annually. At the end of five years, she will need a total of $40,000 accumulated. How should she compute her required annual..
Two residuals for each observation : For a multivariate regression there are no residuals One residual for each observation Two residuals for each observation
What is the corporation''s tax basis in the property : Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 and $50 in a transaction that qualifies for deferral under section 351. the coporation assume..
Find the molarity of a solution : find the molarity when 7.85 moles aluminum chloride are dissolved in enough water to make a total of 600. mL
What is the corporation''s tax basis in the property : Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 and $50 in a transaction that qualifies for deferral under section 351. the coporation assume..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Pervasive factors-misstate assertions in expenditure cycle

Identify several pervasive factors that might motivate management to misstate assertions in the expenditure cycle.

  Applying overhead-journal entries and t-accounds

Prepare journal entries to record items (a) through (f) above [ignore item (g) for the moment]. Prepare T-accounts for Manufacturing Overhead and Work on Process. Post the relevant items from your journal entries to these T-accounts.

  No income gainedfrom revaluations

No Income Gainedfrom Revaluations- You are required to work as a research team intending to present your findings in a suitable written format

  Adjusting journal entries for balance in allowance account

Prepare adjusting journal entries for the following and note the year-end balance in the allowance account. The allowance for uncollectible accounts has a $740 credit balance prior to adjustment.

  Operating income and comprehensive income

Write a 200- to 300-word response to the problem. In addition, include your analysis of indicators such as earnings per share, operating income, and comprehensive income.

  Variable overhead rate variance for the month

The company's cost formula for variable overhead is $9.50 per MH. During the month, the actual total variable overhead was $51,300 and the actual level of activity for the period was 5,700 MHs. What was the variable overhead rate variance for the ..

  What was the ebitda coverage ratio

Ziebart Corp.'s EBITDA last year was $390,000 (= EBIT + depreciation + amortization), its interest charges were $9,500, it had to repay $26,000 of long-term debt, and it had to make a payment of $17,400 under a long-term lease. The firm had no amo..

  Distinguish between upstream and downstream sales

What is the essential procedural difference between work paper eliminating entries for unrealized intercompany profit when the selling affiliate is a less than wholly owned subsidiary and such entries when the selling affiliate is a parent company..

  Diminishing marginal rate of substitution

Two points on an indifference curve that displays a diminishing marginal rate of substitution between cookies and brownies are: 8 cookies and 2 brownies and 6 cookies and 4 brownies.

  Determine the adjusting journal entry

Samantha's Design Studio showed office supplies available of $700. A count of the supplies left on hand as of June 30 was $400. The adjusting journal entry is:

  Recognizd gain or loss

On April 18, 2010, Jane Junipner purchased 30 shares of Bryan Corp. stock for $210, and on September 29, 2010 she purchased an additional 90 shares for $900. On November 28, 2010, she sold 48 shares which could not be specifically identified, for ..

  Maximum amount of interest usaco may deduct on its u.s.

What is the maximum amount of interest USAco may deduct on its U.S. return?

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