User Account

All Pages

What will be the fund balance after the last payment

Assignment Help Accounting Basics
Reference no: EM133134545

Question - Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $60,000 cash immediately, (2) $18,000 cash immediately and a six-period annuity of $7,500 beginning one year from today, or (3) a six-period annuity of $11,800 beginning one year from today.

1. Assuming an interest rate of 5%, 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 $105,000 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: EM133134545

Questions Cloud

Advising the trade policy of a small island nation : Imagine you have been tasked with advising the trade policy of a small island nation (approx. 10 million people). The representatives of this nation are conside
Prepare an income statement for shannon company : Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole
Define general liquidity, solvency and profitability : Question - Define general liquidity, solvency, profitability, assets management, investment performance with examples
How much capital will be credited or debited : In the journal entry to admit the new partner P4, how much capital will be credited or debited to P4 on Jan 1 using the ASSET REVALUATION method
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
What is the expected change in the operating cash flow : Sales of the product are expected to increase by 20 percent next year. What is the expected change in the operating cash flow for this product for next year
How much tax would be payable by the abc superannuation fund : How much tax would be payable by the ABC Superannuation Fund which provided the following details for the current financial year
Calculate the price accurate to two decimal places : Both the coupon rate and the yield are expressed as decimals, e.g. 12% pa is expressed as .12. Calculate the price accurate to two decimal places
Calculate diana total cost recovery deduction : Diana acquires, for $190,400, and places in service a 5-year class asset on December 19, 2021. Calculate Diana's total cost recovery deduction

Reviews

Write a Review

Accounting Basics Questions & Answers

  Evaluate the three alternative bonus plans

Evaluate the three alternative bonus plans, posting your questions and insights for the class

  Interest expense adjustments for gwfss

(Interest expense adjustments for government-wide financial statements (GWFSs)) Thomas County pays all the debt service on its long-term general obligation.

  What differences between financial and managerial accounting

What are differences between financial and managerial accounting? Why is accounting essential for an organization? Who is an entrepreneur? Why is accounting essential for an entrepreneur?

  What was the companys net income for the prior year

What will the new break-even point be if fixed costs increase by 5 percent? What was the company's net income for the prior year?

  What is the journal entry to record the payment

TY Company purchases $14,000 of inventory on August 3rd with terms 2/10, n/30. They issue a check on August 10th.What is the journal entry to record the payment

  Calculate the cost of finished-goods inventory

Missing records, computing inventory costs. Ron Howard recently took over as the controller of Johnson Brothers Manufacturing.

  What amount is recorded as contribution revenue

An acknowledgment in the theater program. The tickets have a fair market value of $50. What amount is recorded as contribution revenue?

  Calculate the cost of goods sold account

Assuming underapplied or overapplied overhead is transferred to cost of goods sold at the end of the period, calculate the cost of goods sold account

  Depreciation on hire purchased asset is claimed by under

1. depreciation on hire purchased asset is claimed by a hire vendor b hire purchaser c either the hire vendor or the

  Difference between professional behaviour and competence

Explain the difference between professional behaviour and professional competence and due care principles

  Which should be classified as a current liability is

Which should be classified as a current liability is? When the effective interest method is used to amortize bond premium or discount, the periodic amortization

  Describe what is meant by abc analysis

Describe what is meant by ABC analysis. What is the purpose of this inventory technique. Explain what is the role of ABC analysis, provide an example.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd