Question

What would you pay for a $200,000 debenture bond that matures in 15 years and pays $10,000 a year in interest if you wanted to earn a yield of:

2%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Amount to Pay 3%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount to Pay 4%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount to Pay

Leon Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 10% basis that will enable him to withdraw $18,140 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Leon intends to make equal contributions on June 30 of each of the years 2017–2020.

How much must the balance of the fund equal on June 30, 2020, in order for Leon to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Balance of the fund equal on June 30, 2020 What are each of Leon’s contributions to the fund? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Leon’s contributions to the fund? During the past year, Julia McGill planted a new vineyard on 150 acres of land that she leases for $30,380 a year. She has asked you, as her accountant, to assist her in determining the value of her vineyard operation. The vineyard will bear no grapes for the first 5 years (1–5). In the next 5 years (6–10), Julia estimates that the vines will bear grapes that can be sold for $62,770 each year. For the next 20 years (11–30), she expects the harvest will provide annual revenues of $112,030. But during the last 10 years (31–40) of the vineyard’s life, she estimates that revenues will decline to $75,980 per year. During the first 5 years, the annual cost of pruning, fertilizing, and caring for the vineyard is estimated at $8,830; during the years of production, 6–40, these costs will rise to $11,280 per year. The relevant market rate of interest for the entire period is 6%. Assume that all receipts and payments are made at the end of each year. Click here to view factor tables Rick Button has offered to buy Julia’s vineyard business by assuming the 40-year lease. On the basis of the current value of the business, what is the minimum price Julia should accept? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Minimum price at which Julia should accept the business? You have been hired as a benefit consultant by Jean Honore, the owner of Vaughn Angels. She wants to establish a retirement plan for herself and her three employees. Jean has provided the following information. The retirement plan is to be based upon annual salary for the last year before retirement and is to provide 50% of Jean’s last-year annual salary and 40% of the last-year annual salary for each employee. The plan will make annual payments at the beginning of each year for 20 years from the date of retirement. Jean wishes to fund the plan by making 15 annual deposits beginning January 1, 2017. Invested funds will earn 12% compounded annually. Information about plan participants as of January 1, 2017, is as follows. Jean Honore, owner: Current annual salary of $48,520; estimated retirement date January 1, 2042. Colin Davis, flower arranger: Current annual salary of $38,330; estimated retirement date January 1, 2047. Anita Baker, sales clerk: Current annual salary of $18,330; estimated retirement date January 1, 2037. Gavin B, part-time bookkeeper: Current annual salary of $17,520; estimated retirement date January 1, 2032. In the past, Jean has given herself and each employee a year-end salary increase of 4%. Jean plans to continue this policy in the future. Click here to view factor tables Based upon the above information, what will be the annual retirement benefit for each plan participant? (Hint: Jean will receive raises for 24 years.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Annual Retirement Benefit Jean Honore $ Colin Davis $ Anita Baker $ Gavin B $ Click here to view factor tables What amount must be on deposit at the end of 15 years to ensure that all benefits will be paid? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The amount must be on deposit? What is the amount of each annual deposit Jean must make to the retirement plan? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The amount of each annual deposit?

Answer 1

+ what would you pay for a $ 200,000 debentwe bond that mature in 15 years and pays $10000 int. @ Yield of 2% (N=isyeas; I - 247 s 198602 IS 200,000 X 0.74301 hpv OF S 1 table] $10,000 X 12.84926 rpaesent value of ordinary Annuity] 128493 $ 277095 6 yield of 3.1. C N = 15 Yeas I = 3%7 $ 200,000 X 0.64186 S 128372 CPU OF $ 1) B 1,19,379 $ 10000 X 11.93794 (present value of ordinary Annuity] $ 247751 @ yield of 4% (N= 15 year; I - 41 0.55526 $ 11052 $200,000X CPVORSI 10000 X 11. 11839 C present value of ordinary Annuity 11, 11, 184 1$ 3, 22, 236