**Ajax Corporation Retirement Plan Calculation**Ajax Corporation has hired Brad O’Brien as its new president. The contractual terms included that the company will pay retirement benefits of $18,800 at the end of each semiannual period for 12 years. These payments will start in 4,015 days. If the money can earn an investment return of 8% compounded semiannually, the corporation needs to determine how much it should deposit today to meet this future obligation.**Calculation Instructions:**- **Interest Rate:** 8% compounded semiannually.- **Time Frame:** 12 years.- **Payment Amount:** $18,800 at the end of each semiannual period.- **Starting Time:** Payments begin in 4,015 days.- **Approach:** Use financial tables (Table 1 and Table 12.3) for calculations.- **Calculation Requirements:** Use 365 days a year for the calculation. Do not round intermediate calculations, but round the final answer to the nearest cent.**Calculated Deposit Amount:** $95,193.14This amount is the present value needed to fulfill the company's promise of retirement benefits to Brad based on the given interest rate and time frame conditions.

As per the given information:To determine:The amount to be deposited today to fulfill its…

Ajax Corporation has hired Brad O'Brien as its new president. Terms included the company's agreeing to pay retirement benefits of $18,800 at the end of each semiannual period for 12 years. This will begin in 4,015 days. If the money can be invested at 8% compounded semiannually, what must the company deposit today to fulfill its obligation to Brad? (Use Table and Table 12.3.) Note: Use 365 days a year. Do not round intermediate calculations. Round your answer to the nearest cent. Deposit amount 95.193.14

Ajax Corporation has hired Brad O'Brien as its new president. Terms included the company's agreeing to pay retirement benefits of $18,800 at the end of each semiannual period for 12 years. This will begin in 4,015 days. If the money can be invested at 8% compounded semiannually, what must the company deposit today to fulfill its obligation to Brad? (Use Table and Table 12.3.) Note: Use 365 days a year. Do not round intermediate calculations. Round your answer to the nearest cent. Deposit amount 95.193.14

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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