An employee's compensation includes an annuity that pays $80,000 at retirement, with each subsequent annual payment growing by 3% for a total of 6 payments overall. The firm's policy is to pre- fund such annuities before retirement. At an interest rate of 4%, how much would the firm need to invest 4 years before retirement?
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?An employee's compensation includes an annuity that pays $110,000 at retirement, with each subsequent annual payment growing by 2% for a total of 8 payments overall. The firm's policy is to pre- fund such annuities before retirement. At an interest rate of 5%, how much would the firm need to invest 3 years before retirement? Please round your answer to the nearest hundredth.A company wants to have $20,000 at the beginning of each 6-month period for the next 4years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.31%, compounded semiannually? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. ordinary annuityannuity due (b) Solve the problem. (Round your answer to the nearest cent.)
- A company wants to have $50,000 at the beginning of each 6-month period for the next 4 1/2 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.29%, compounded semiannually? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. ordinary annuityannuity due (b) Solve the problem. (Round your answer to the nearest cent.) $A company wants to determine how much it should pay to purchase a particular ordinary annuity today. The annuity consists of cash flows of $ 8,000 at the end of each year for 5 years. The firm requires the annuity to provide a minimum return of 10%.Calculate the amount(Means you need to calculate PV of ordinry annuity). However anlyse how the answer will change if it a annuity due.A company wants to have $20,000 at the beginning of each six month period for the next 4 1/2 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.04%, compounded semi annually? (a)Decide whether the problem relates to an ordinary annuity or an annuity due. (B)Solve the problem. (round your answer to the nearest sent)
- GQ Corporation hopes to withdraw 59,000 at the end of each year for six years from a fund that earns 7% interest. How much should the corporation invest today? Draw a timeline to illustrate the problem. Interest is compounded annually. (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) Caro today (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of an Ordinary Annuity table) (Click the icon to view the Present Value of an Annuity Due table) How much should the corporation invest today? (Use the present value and future value tables, a financial calculator, a spreadsheet or the formula method for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, XXXXXXX Round your final answer to the nearest cent. SXXX) The…A company wants to have $50,000 at the beginning of each 6-month period for the next 4.5 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.23%, compounded semiannually?A borrower takes out a 30-year loan for a house worth $250,000. If the annual interest rate is 6%. if the borrower chooses to pay $40,000 at the end of year 12, what will the new payments be assuming the loan maturity will not be reduced?
- Gold Insurance Company intends to offer a contract with a guaranteed annuity in units of$500, payable at the end of each year for 25 years. The company has a strong investmentrecord and can consistently earn 7 percent on its net investments after taxes. If thecompany intends to earn 1 percent on this contract, compute the estimated price that GoldInsurance should set at a 6 percent discount rate. Assume that it is an ordinary annuity,and the price will be equivalent to the present value.Wildhorse Co. is considering investing in an annuity contract that will return $28,140 annually at the end of each year for 12 years. 1. What amount should Wildhorse Co. pay for this investment if it earns an 7% return?Ashvin
