10)Vanessa wants to withdraw $8,000 each year from July 1, 2025 through July1, 2029. The investment fund earns interest at a rate of 5%. In order to make thesewithdrawals, Vanessa will invest an annuity on July 1, 2021 through July 1, 2024.Calculate the annuity Vanessa needs to invest each year.Yellow Company purchases a truck on January 1, 2021. According to thecontract Yellow will not make any payments in 2021, 2022 and 2023. Yellow is tomake an annuity payment of $5,000 starting December 31, 2024 through December31, 2028. Calculate the cost of the truck.11)Stella has $3,000,000 in her investment fund. She wishes to withdraw $338,86812)at the end of each of the next 13 years. What interest rate must she earn in order toaccomplish her goal.A note receivable that is due in 15 months from now is always classified as a13)long-term asset. (True/False)14)A long-term note receivable should be disclosed in Other Assets in a classifiedbalance sheet. (True/False)

Present value of withdrawals at july1,2025= 8000 + (8000*annuity factor of 4 years at 5%) =8000+…

Answered: 10) Vanessa wants to withdraw $8,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

. Your friend Anne is planning to invest $700 each year for four years and will earn a rate of 6 percent per year. Determine the future value of this annuity due if her first $700 is invested now. Show your work. What is the difference between an annuity due and an ordinary annuity? Explain.
Janet's parents decided to pay a lump sum payment today of $135000 so she will be able to make 4 years of monthly withdrawals. The college provides an annuity of 6%, compounded monthly. If Janet will make her first withdrawal in 8 years, what is the size of EACH withdrawal?
Six years ago, Gladys opened a retirement account with an initial deposit of $14,000. Each year since then, she has added $2,000 to the account at the end of each year. She plans on contributing for the next 25 years. How would you determine the future value of her account at retirement? O Future value of a lump sum and future value of an annuity. O Future value of an annuity and the present value of a lump sum. O Future value of a lump sum and present value of an annuity. O Future value of an annuity.
Your grandmother set up an annuity, in which she will receive a monthly payment from the bank of $1200 per month, payable at the beginning of each month. She paid $200,000 for this annuity. The bank says they are paying an interest rate of 4%. How many months does the bank plan to pay the annuity?
Please solve this by using a number line
Kevin deposits a fixed quarterly amount into an annuity account for his child's college fund. He wishes to accumulate a future value of $90,000$⁢90,000 in 1616 years. Assuming an APR of 3.7%3.7% compounded quarterly, how much of the $90,000$⁢90,000 will Kevin ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.
Your friend Anne is planning to invest $500 each year for five years and will earn a rate of 5.5 percent per year. a) Determine the future value of this annuity due if her first $500 is invested now. Show your work.b) What is the difference between an annuity due and an ordinary annuity? Explain.
7. What is the anticipated monthly annuity that is to be deposited into an account paying an annual 8.4% compounding monthly, if we wish to have $1,500,000 in six years? 8. Alexa wants to save up $300,000 in 4 years to pay as a down payment for a house. What is the amount of each quarterly payment, if the trust fund grants a quarterly rate of 2.8%. Consider each deposit made at beginning of each quarter.
Frank plans to set aside money for his young daughter's college tuition. He will deposit money in an ordinary annuity that earns 7.2% interest, compounded quarterly. Deposits will be made at the end of each quarter. How much money does he need to deposit into the annuity each quarter for the annuity to have a total value of $71,000 after 16 years?
Cheryl is setting up a payout annuity with her bank. She wants to receive a payout of $1200 per month for 20 years. A. How much will she have to deposit if she earns 8% interest compounde monthly? B. What's the total she will receive from her payout annuity?
Find the future value of each using the future value of an ordinary annuity formula. Shelly deposits the $2,000 she got as a birthday gift from her grandmotherinto an account earning 3.6% interest compounded monthly. She decides to also deposit $200 at the end of each month into the same account. How much will be in the account in 10 years? Julian won the lottery! He deposits some of his winnings intoan account earning 2.75% interest compounded quarterly. He makes his deposit of $25,000 and also decides to start making deposits of $1,000 into the same account at the end of each quarter. How much will he have after 5 years?
Katie is planning to receive an annuity of $7,545 per year for the next 38 years as part of her retirement plan. The interest rate is 0.06 per annum compounded annually. Calculate the present value (PV) of this annuity $6,191.79 $1,484.60 $4,920.36 $5,190,960.00 $112,013.21

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