Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer all 3 questions with explanation please 1, Debbie has S368.882 accumulated in a 401K plan. The fund is earning a low, but safe, 396

answer all 3 questions with explanation please
image text in transcribed
1, Debbie has S368.882 accumulated in a 401K plan. The fund is earning a low, but safe, 396 per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $30,000 each year? A. 12.3 years. B. 14 years C. 15 years. D. 16 years. E. 17 years. Garland Inc. offers a new employee a lump-sum signing bonus at the date of employment, June 1, 2016. Alternatively, the employee can take $39,000 at the date of employment plus $10,000 each June 1 for five years, beginning in 2020, Assuming the employee's time value of money is 9% annually, what lump sum at employment date would make him indifferent between the two options? A. $44,035. B. $40,855 C. $69,035 D. $30,035. E. $39,000 2. mes,i Koko Company will pay $10 million at the end of each year for 10 years to Mocha Inc. for a building with a fair value of $75 million. What is the interest rate used to calculate the annual payments? A. Between 13% and 14%. B. Between 7% and 8%. C. Between 5.5% and 6%. D. Not enough information to determine the answer. E. None of the above. 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Well Church Book A Practical Guide To Mission Audit

Authors: John Finney

1st Edition

0862015499, 978-0862015497

More Books

Students also viewed these Accounting questions