Question
An employee's compensation includes an annuity that pays $90,000 at retirement, with each subsequent annual payment growing by 5% for a total of 9 payments
An employee's compensation includes an annuity that pays $90,000 at retirement, with each subsequent annual payment growing by 5% for a total of 9 payments overall. The firms policy is to pre-fund such annuities before retirement. At an interest rate of 7%, how much would the firm need to invest 2 years before retirement? Please round your answer to the nearest hundredth.
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Accounting Information For Business Decisions
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons
2nd Edition
0170253708, 978-0170253703
