Henry, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 12% basis that will enable him to withdraw $63,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Henry intends to make equal contributions on June 30 of each of the years 2017-2020. Click here to view factor tables (a) Your answer is correct. How much must the balance of the fund equal on June 30, 2020, in order for Henry to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 4,585.81.) Balance of the fund equal on June 30, 2020 $ LA Henry's contributions to the fund $ 191353 What are each of Henry's contributions to the fund? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 4,585.81.)

Henry, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 12% basis that will enable him to withdraw $63,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Henry intends to make equal contributions on June 30 of each of the years 2017-2020. Click here to view factor tables (a) Your answer is correct. How much must the balance of the fund equal on June 30, 2020, in order for Henry to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 4,585.81.) Balance of the fund equal on June 30, 2020 $ LA Henry's contributions to the fund $ 191353 What are each of Henry's contributions to the fund? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 4,585.81.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Clarence Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $20,000 per year on June 30, beginning in 2024 and continuing through 2027. To develop this fund, Clarence intends to make equal contributions on June 30 of each of the years 2020–2023. Instructions a. How much must the balance of the fund equal on June 30, 2023, in order for Clarence to satisfy his objective? b. What are each of Clarence’s contributions to the fund?
Steve, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 9% basis that will enable him to withdraw $67,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Steve intends to make equal contributions on June 30 of each of the years 2017–2020. How much must the balance of the fund equal on June 30, 2020, in order for Steve to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124, and final answer to 2 decimal places, e.g. 4,585.81.) Balance of the fund equal on June 30, 2020 $enter the balance of the fund equal on June 30, 2020 in dollars
Steve, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 9% basis that will enable him to withdraw $67,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Steve intends to make equal contributions on June 30 of each of the years 2017–2020. How much must the balance of the fund equal on June 30, 2020, in order for Steve to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124, and final answer to 2 decimal places, e.g. 4,585.81.) Balance of the fund equal on June 30, 2020 $enter the balance of the fund equal on June 30, 2020 in dollars check_circle Step 1 Steve will withdraw $67,000 per year for four years from June 2021 to 2024 Present value of an annuity of $67,000 per year discounted at 9% per year Value of fund as of June 30 2020 can be calculated using the following formula: Drawings per year x (1 –(1+r)-n/Rate) R= Rate per…
(Computations for a Retirement Fund) Clarence Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $20,000 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Clarence intends to make equal contributions on June 30 of each of the years 2017–2020.Instructions(a) How much must the balance of the fund equal on June 30, 2020, in order for Clarence to satisfy his objective?(b) What are each of Clarence’s contributions to the fund?
Steve Weatherspoon, a super salesman contemplating retirement on his ffty-ffth birthday, decides to create a fund on an 9% basis that will enable him to withdraw $ 16,000 per year on June 30, beginning in 2024 and continuing through 2027. To develop this fund. Steve intends to make equal contributions on June 30 of each of the years 2020-2023. What are Steve's contributions to the fund ?
Leon Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 12% basis that will enable him to withdraw $25,300 per year on June 30, beginning in 2029 and continuing through 2032. To develop this fund, Leon intends to make equal contributions on June 30 of each of the years 2025–2028. What are each of Leon’s contributions to the fund? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Leon’s contributions to the fund $
Ricky, an executive VP contemplating retirement on his sixty fifth birthday, decides to create a fund on a 6% basis that will enable him to withdraw $90,000 per year on July 31, beginning in 2025 and continuing through 2029. To develop this fund, Rich intends to make equal contributions on July 31 of each of the years 2020–2024.1. Compute how much the balance of the fund must equal on July 31, 2024, in order for Rich to satisfy his objective.2. Compute the amount of Rich’s contributions to the fund
John, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on a 12% basis that will enable him to withdraw $60,000 per year on June 30, beginning in 2029 and continuing through 2033. To develop this fund, John intends to make equal contributions on June 30 of each of the years 2025 - 2028. How much must the balance of the fund equal on June 30, 2029, in order for John to satisfy his objective? Balance of the fund equal on June 30,2029: $__________
A professor wishes to provide a fund for his retirement such that from his 60th to 70th birthdays he will be able to withdraw equal sums of P18,000 for his yearly expenses. He invests equal amount for his 41st to 59th birthdays in a fund earning 10% compounded annually. How much should each of these amounts be?
As part of his 401(k) retirement plan at work, Ken Lowery invests 5.0 percent of his salary each month in the Capital Investments Lifecycle Fund. At the end of this year, Ken's 401(k) account has a dollar value of $210,800. If the fund charges a 12b-1 fee of 0.75 percent, what is the amount of the fee? (Round your answer to 2 decimal places.) 12b-1 fee
A philanthropist put up an account to award P30,000 worth of scholarship grant every year to selected engineering students. The initial amount worth P100,000 was deposited to the account on January 1, 2019 at 5% compounded semi-annually rate. Starting January 1, 2020, P10000 each year was added to the fund and lasted for as long as awards can be made. 1. For how many years starting January 1, 2020 can the scholarship last 2. What will be the balance in the fund after the last scholarship fund was awarded 3. Find the effective rate.
A man wishes to provide a fund for his retirement such that from his 60th to 70th birthdays he will be able to withdraw equal sums of P18,000 for his yearly expenses. He invests equal amount for his 41st to 59th birthdays in a fund earning 10% compounded annually. How much should each of these amounts be? Please show the whole solution.