Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Whispering Inc. wishes to accumulate $1,378,000 by December 31, 2030, to retire bonds outstanding. The company deposits $212,000 on December 31, 2020, which will earn

Whispering Inc. wishes to accumulate $1,378,000 by December 31, 2030, to retire bonds outstanding. The company deposits $212,000 on December 31, 2020, which will earn interest at 8% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,378,000 is available at the end of 2030. (The quarterly deposits will also earn at a rate of 8%, compounded quarterly.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Whispering Inc. wishes to accumulate $1,378,000 by December 31, 2030, to retire bonds outstanding. The company deposits $212,000 on December 31, 2020, which will earn interest at 8% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,378,000 is available at the end of 2030. (The quarterly deposits will also earn at a rate of 8%, compounded quarterly.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)Whispering Inc. wishes to accumulate $1,378,000 by December 31, 2030, to retire bonds outstanding. The company deposits $212,000 on December 31, 2020, which will earn interest at 8% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,378,000 is available at the end of 2030. (The quarterly deposits will also earn at a rate of 8%, compounded quarterly.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) What is the Annuity of value of quarterly deposits?

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

A Practical Guide To UK Accounting And Auditing Standards

Authors: Steve Collings

1st Edition

152650331X, 9781526503312

More Books

Students also viewed these Accounting questions