1. Company has an plan to provide a pension plan for its one employee. They plan to start saving on 12/31/2020 and will save the same amount at the end of each year for 4 years ending at 12/31/2023. Once the money is accumulated on 12/31/2023. They will place in in an investment that will earn 9% annual interest. The company will pay $6,000 at the start of year year starting 1/1/2025 and continuing 4 more years to 1/1/2029 total of 5 payments. How much money will the company need to have collected at 1/1/2024 in order to start payming the annuity of $6,000 a year earning 9% annual interest rounded to the nearest full dollar? my answer was $30,000 or $66,6667. What am I doing wrong or how do I calculate this question? 2. If the amount of money the company sets aside is $25,000 at 12/31/2023 then if the amount the company needs to set aside every year is $5,887 starting 12/31/2020 then what interest does this account earn annually? my answer was 6% but I don't think that is correct how do I calculate this question?
1. Company has an plan to provide a pension plan for its one employee. They plan to start saving on 12/31/2020 and will save the same amount at the end of each year for 4 years ending at 12/31/2023. Once the money is accumulated on 12/31/2023. They will place in in an investment that will earn 9% annual interest. The company will pay $6,000 at the start of year year starting 1/1/2025 and continuing 4 more years to 1/1/2029 total of 5 payments.
How much money will the company need to have collected at 1/1/2024 in order to start payming the
my answer was $30,000 or $66,6667.
What am I doing wrong or how do I calculate this question?
2. If the amount of money the company sets aside is $25,000 at 12/31/2023 then if the amount the company needs to set aside every year is $5,887 starting 12/31/2020 then what interest does this account earn annually?
my answer was 6% but I don't think that is correct how do I calculate this question?
Thank you
Brenda
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