In 2015, Cart Inc. adopted a plan to accumulate funds for environmental remediation beginning July 1, 2020 at an estimated cost of $26 million. Cart plans to make five equal annual payments into a fund earning 6%interest compounded annually. The first deposit is scheduled for July 1, 2015. Determine the amount of the required annual deposit.Use Excel or a financial calculator for the computations. Round your answer to the nearest dollar.Required annual deposit $ 3,347,101.89X

Future value is the estimation of the current value of cash flows that are likely to be received in…

Answered: In 2015, Cart Inc. adopted a plan to…

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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Commencing January 1 2022 Narelle plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be made on January 1 2022. Narelle predicts that the rate of return on this fund will be j12=2.62% from 1 January 2022 to 30 June 2022 and j12=5.44% from 1 July 2022 to 31 December 2022. If we assume these deposits are made at regular intervals, what will the balance of this account be on 31 December 2022?
On January 1, 2020, Flannagan Fencing Corp. establishes a debt retirement fund to pay off a $500,000 debt due in 8 years. If the fund earns interest at 6% and payments will be made monthly, starting January 1, 2020, what amount must be deposited each month? Round your answer to the nearest dollar. Group of answer choices $ 6,571 $ 4,050 $28,408 $ 6,538 $ 7,677
June Stickney purchased an annuity on January 1, 2019, which, at a 12% annual rate, would yield $6,000 each June 30 and December 31 for the next 6 years. What was the cost of the annuity to Stickney? Round your answer to two decimal places. $ fill in the blank 4 Five equal annual contributions are to be made to a fund, with the first deposit on December 31, 2019. Determine the equal contributions that, if invested at 10% compounded annually, will produce a fund of $30,000 on December 31, 2024. Round your answer to two decimal places. $ fill in the blank 5 Beginning on December 31, 2020, 6 equal annual withdrawals are to be made. Determine the equal annual withdrawals if $11,000 is invested at 10% interest compounded annually on December 31, 2019. Round your answer to two decimal places. $ fill in the blank 6
Treating each as a separate event answer the following: A. If $12,000 is deposited annually starting on January 1, 2020 and it earns 9%, how much will accumulate by December 31, 2029? B. Calculate the future value of an annuity due of $12,000 for 10 periods at 9% C. Steve Milner borrowed $120,000 on July 1, 2020. This amount plus accrued interest at 8% compounded semiannually is to be repaid in total on July 1, 2030. To retire this debt, Milner plans to contribute to a debt retirement fund five equal amounts starting on July 1, 2025 and continuing for the next four years. The fund is expected to earn 6% per annum. Compute how much must be contributed each year by Steve Milner to provide a fund sufficient to retire the debt on July 1, 2030? D. Andrea is 40 years old today and she wishes to accumulate $2,000,000 by her sixty fifth birthday so she can retire to a beach in Florida. She wishes to accumulate this amount by making equal deposits on her fortieth through her sixty fourth…
Alan Kaminski just received a signing bonus of $ 1,600,000. His plan is to invest this payment in a fund that will earn 10%, compounded annually. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)Click here to view the factor table. https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $26,000 each, and will be paid on December 31, 2021, 2022, and 2023. The last three are to be $41,000 each and will be paid on December 31, 2024, 2025, and 2026. Montgomery borrowed other money at a 12% annual rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:1. At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2021?2. How much interest expense on this note will Montgomery recognize in 2021?
On January 1, 2021, the company obtained a $3 million loan with a 10% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,080,000 March 1, 2021 900,000 June 30, 2021 320,000 October 1, 2021 700,000 January 31, 2022 720,000 April 30, 2022 1,035,000 August 31, 2022 1,800,000 On January 1, 2021, the company obtained a $3 million construction loan with a 10% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company’s other interest-bearing debt included two long-term notes of $5,000,000 and $7,000,000 with interest rates of 5% and 8%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company’s fiscal year-end is December 31. Required: Calculate the amount of interest that Mason should…
On Jan 1, 2020 Walter Co decided to begin accumulating a fund for asset replacement 5 years later The company plans to make 5 annual deposits of $80,000 at 9% each January 1 beg in 2020 What will be the balance in the fund within $10 on Jan 1, 2025 (one year after the last deposit)? The following 9% interest factors may be used $436,000 is my answer is that correct Thank you Brenda
Required information [The following information applies to the questions displayed below.) On January 1, 2024, Monster Corporation borrowed $19 million from a local bank to construct a new highway over the next four years. The loan will be paid back in four equal installments of $5,609,334 on December 31 of each year. The payments include interest at a rate of 7%. 2. Prepare an amortization schedule over the four-year life of the installment note. (Round your final answers to the nearest dollar amount. Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000.).) Date 12/31/2024 12/31/2025 12/31/2026 12/31/2026 Cash Paid Interest Expense Decrease in Carrying Value Carrying Value
On September 1, 2010, you decided to put $15000 in a money market fund. On March 1, 2015, you deposit another $16000 and on Jan 1, 2018, you added another $ 18000. This fund pays interest at the annual rate of 7.2%, compounded monthly. Find the future value of the fund on January 1, 2019, one year after the third deposit.
Sd
If $90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of $23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?

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