The Bluebird Company has a $10,000 liability it must pay three years from today. The company is opening a savings account so that the entire amount will be available when this debt needs to be paid. The plan is to make an initial deposit today and then deposit an additional $2,500 a year for the next three years, starting one year from today. The account pays a 3% rate of return. How much does the Bluebird Company need to deposit today? a) $1,867.74 b ) 2,079.89 c) 3, 108.09 d) 4,276.34 e) 4,642.28
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- You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Milo Corp. wants to accumulate $ 500,000 for a payment that will become due in 5 years. That is , at the end of 5 years it will have to pay this amount. It intends to make a deposit of constant amount every year for the next 5 years, starting at the end of the first year. The deposit earns an interest of 8% annually. What is the amount that Milo Corp. should save every year? $80,965.0 $78,915.03 $85,228.23 $85,678.09Travis International has a debt payment of $2.36 million that it must make 4 years from today. The company does not want to come up with the entire amount at that time, so it plans to make equal monthly deposits into an account starting 1 month from now to fund this liability. If the company can earn a return of 5.43 percent compounded monthly, how much must it deposit each month?
- Company A is contemplating on borrowing $500,000 to start a business. Credit union 1 has offered to loan the company the money at an interest rate of 10% compounded monthly. Credit union 2 has offered the money with the stipulation that the company repays it by making monthly payments of $100,000 for 8 years. From which credit union should the company borrow the money?Company A is contemplating on borrowing $500,000 to start a business. Credit union 1 has offered to loan the company the money at an interest rate of 14% compounded continuously. Credit union 2 has offered the money with the stipulation that the company repays it by making monthly payments of $120,000 for 5 years. From which credit union should the company borrow the money?Lorena's Cart took out a loan from the bank today for $245,600.00. The loan requires Lorena's Cart to make a special payment of $86,000.00 to the bank in 4 years and also make regular, fixed payments of X to the bank each year forever. The interest rate on the loan is 11.60 percent per year and the first regular, fixed annual payment of X will be made to the bank in 1 year. What is X, the amount of the regular, fixed annual payment? O $55,442.36 (plus or minus 3 dollars) O $18,513.60 (plus or minus 3 dollars) O $22,058.29 (plus or minus 3 dollars) O $28,489.60 (plus or minus 3 dollars) none of the answers are within 3 dollars of the correct answer
- A company is going to set up a oerpetuity to withdraw $ 150 for miscellaneous expenses each quarter. Money in this account cat earn 2% compunded quarterly. They will not withdraw the first payment until 1 year from today, how much is needed in account today to grow to be what is needed in 1 yearYou deposit $1.2 milion into vour account to cover expenses in the next 12 vears. The account earns interest at the rate of 4%, compounded annually. Assume you expect the balance of the account to be $0 at the end of the 12th year. A) What annual level of living expenses Will your initial deposit support. (e.g., what equal annual withdrawal can you make for the next 12 years )? b) Suppose you realize your living expenses will increase at an annual rate of 2% due to inflation. Determine the updated annual spending plan in the line with this model how much can you withdrawal at the end of the first year. knowing that your withdrawal will increase by 2% each year? C) Suppose the initial deposit is still planned to support your equal annual expenses in the next 10 years as in part a but don't need to withdraw any money from your account for the first 6 years. You will withdraw from your account annually starting from the end of year 7 till the end of year 12. What annual level of living…Sampson Company just purchased a piece of equipment with a value of $53,300. Sampson financed this purchase with a loan from the bank and must make annual loan payments of $13,000 at the end of each year for the next five years. Interest is compounded annually on the loan. What is the interest rate on the bank loan? Round your answer to the nearest whole number.fill in the blank 1 % 2. Simon Company needs to accumulate $200,000 to repay bonds due in six years. Simon estimates it can save $13,300 at the end of each semiannual period at a local bank offering an annual interest rate of 8% compounded semiannually. Calculate the amount accumulated at the end of six years. Round your answer to the nearest whole dollar.$fill in the blank 2 Will Simon have enough money saved at the end of six years to repay the bonds?