What will be the fund balance after the last payment

Assignment Help Accounting Basics
Reference no: EM132818103

Question - Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $98,000 cash immediately, (2) $40,000 cash immediately and a six-period annuity of $9,900 beginning one year from today, or (3) a six-period of annuity of $19,800 beginning one year from today.

1. Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose?

2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $200,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 6% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030?

Reference no: EM132818103

Questions Cloud

What are the two main types of research methodologies : What is a research design? What is its function? What are the two main types of research methodologies? How are they carried out differently?
What is appropriate journal entry for job for mayer company : Mayer Company, For job 836, direct labor hours were 700 for the month of December. What is the appropriate journal entry for job 836 for the month of December?
How would you prepare your organization and team : In this module we have explored leadership in times of crisis as well as the potential for positive outcomes. In 4-5 pages (12-font, double-spaced).
What the entry to record the sale is : The shares were acquired six months ago at a cost of $58 a share. Sheffield sold the shares for $42 a share. The entry to record the sale is
What will be the fund balance after the last payment : Assuming that the bank account pays 6% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030
Prepare a summary of petty cash payments : Prepare a summary of petty cash payments (also known as the Petty Cash Payments Report) for January. Choose the general ledger accounts
What is geo cost of equity from retained earnings : What is Geo's cost of equity from retained earnings using the bond yield plus risk premium approach?
Prepare a statement of cash flows using the indirect method : Net income for the fiscal year ending December 31, 2020, was $145,000. Prepare a statement of cash flows using the indirect method
How to incorporate different types of sources : When you need Harvard style of citations and referencing. Similarly, choose the Vancouver referencing option when you need the same. you may not know how.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the economic order quantity

Determine the economic order quantity. Determine the annual cost savings if the shop change from an order size of 15 units to the economic order quantity.

  Record the journal entry to charge materials at standardto

a company produces bird food. during april it produced147 batches of food each batch weighing 100 lbs. to produce this

  During 2014 harvey industries reported cash provided by

during 2014 harvey industries reported cash provided by operations of 670000 cash used in investing of 1039000 and cash

  Compute the total contribution to Ms Jost plan

This year, Ms. Jost's salary is $110,000, and she elects to contribute the maximum to her Section 401(k) account. Compute the total contribution to Ms Jost plan

  Prepare the general journal entry to record the payment

Additionally, prepare the general journal entry to record the payment of the note when due in 2018

  What will happen to the return on investment Stom Division

The current controllable margin for Stom Division is $124,000. If the equipment is purchased, what will happen to the return on investment Stom Division

  Stephen bosworth a super salesman contemplating retirement

stephen bosworth a super salesman contemplating retirement on his fifty-fifth birthday decides to create a fund on an 8

  Compute diluted earnings per share

Compute diluted earnings per share for 2017, assuming the same facts as above, except that $1,020,000 of 6% convertible preferred stock was issued

  What is the tax savings from the special tax treatment

what is the tax savings from the special tax treatment, Daniel is considering selling two stocks that have not fared well over recent years

  What is smiths sales revenue

The smith company uses the cash basis of accounting. What is Smith's Sales Revenue under the accrual basis of accounting

  What internal controls are absent or have been violated

What internal controls are absent or have been violated? What recommendation for the findings below? What are the risks and consequences in the items below

  Assume a government leases equipment to obe used in

assume a government leases equipment to obe used in governmental activities under a noncancelable lease meeting the

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