What is the amount of the payments that ned winslow must

Assignment Help Accounting Basics

Reference no: EM13600011

Using the appropriate interest table, provide the solution to each of the following four questions by computing the unknowns.
(a) What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $90,000 by the end of the eighth year, if the fund earns 8% interest, compounded annually?

(b) Robert Hitchcock is 40 years old today and he wishes to accumulate $500,000 by his sixty-fifth birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his fortieth through his sixty-fourth birthdays. What annual deposit must Robert make if the fund will earn 12% interest compounded annually?

(c) Diane Ross has $20,000 to invest today at 9% to pay a debt of $47,347. How many years will it take her to accumulate enough to liquidate the debt?

(d) Cindy Houston has a $27,600 debt that she wishes to repay 4 years from today; she has $19,553 that she intends to invest for the 4 years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt?

Reference no: EM13600011

Questions Cloud

Lambert invests 10000 for a 13 interest in a partnership in : lambert invests 10000 for a 13 interest in a partnership in which the other partners have capital totaling 26000 before

What other critical background information might you want : the following table contains calculations of several key ratios for indianola pharmaceutical company a maker of

Burger palace corporation reports a net cash used for : burger palace corporation reports a net cash used for investing activities of 3.4 million and a net cash provided by

Axillar beauty products corporation is considering the : axillar beauty products corporation is considering the production of a new conditioning shampoo that will require the

What is the amount of the payments that ned winslow must : using the appropriate interest table provide the solution to each of the following four questions by computing the

Equity corp paid a consultant to study the desirability of : equity corp. paid a consultant to study the desirability of installing some new equipment. the consultant recently

Abc company has the following costs related to its : abc company has the following costs related to its manufacturing process supervisor salaries 100000 utilities 30000

Abc company has an effective tax rate of 40 if they have : abc company has an effective tax rate of 40. if they have fixed cost of 30000 and want an after tax profit of 65000

Sales for the year were 1000000 half of which were on : sales for the year were 1000000 half of which were on credit. the average gross profit rate was 50 percent on sales.

User Account

All Pages