Case A - You have decided to start planning for your retirement. You already have $11,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Case A - You have decided to start planning for your retirement. You already have $11,000 in your investment account. You plan to put an additional $4,000 into the account at the BEGINNING of each year for the next 10 years and then put $6,000 into the account at the BEGINNING of each of the following 30 years. Your account is expected to grow at 6.5% interest (tax free) annually. Prepare a schedule to show (1.) the year (1 through 40), (2.) the beginning balance each year, (3.) the amount of interest earned each year, (4.) the deposit each year, and (5.) the ending balance each year. Format each of the dollar amounts with two decimals. Please include totals at the bottom of your spreadsheet for (1) the amount of interest and (2) the amount of deposits during the entire 40 year (10 + 30) year time. Case B-You estimate that you will have $43,000 of school loans by the time you graduate. Your school loan is to be paid off over 10 years but you plan to pay it off over a 4 year period with payments being made at the END of each MONTH for the 4 years following graduation. Assume your school loans charge 6% interest compounded MONTHLY. Prepare a schedule to show (1) the month number (i.e. #1 - #48), (2) the beginning loan balance each month, (3) the payment each month, (4) the amount of interest in each monthly payment, (5) the amount of principal in each monthly payment, and (6) the ending balance each month. Format each of the amounts with two decimals. Please include totals at the bottom of your spreadsheet for (1) the amount of payments, (2) the amount of interest, and (3) the amount of principal which was paid during the 48 month term of the loan. Case A - You have decided to start planning for your retirement. You already have $11,000 in your investment account. You plan to put an additional $4,000 into the account at the BEGINNING of each year for the next 10 years and then put $6,000 into the account at the BEGINNING of each of the following 30 years. Your account is expected to grow at 6.5% interest (tax free) annually. Prepare a schedule to show (1.) the year (1 through 40), (2.) the beginning balance each year, (3.) the amount of interest earned each year, (4.) the deposit each year, and (5.) the ending balance each year. Format each of the dollar amounts with two decimals. Please include totals at the bottom of your spreadsheet for (1) the amount of interest and (2) the amount of deposits during the entire 40 year (10 + 30) year time. Case B-You estimate that you will have $43,000 of school loans by the time you graduate. Your school loan is to be paid off over 10 years but you plan to pay it off over a 4 year period with payments being made at the END of each MONTH for the 4 years following graduation. Assume your school loans charge 6% interest compounded MONTHLY. Prepare a schedule to show (1) the month number (i.e. #1 - #48), (2) the beginning loan balance each month, (3) the payment each month, (4) the amount of interest in each monthly payment, (5) the amount of principal in each monthly payment, and (6) the ending balance each month. Format each of the amounts with two decimals. Please include totals at the bottom of your spreadsheet for (1) the amount of payments, (2) the amount of interest, and (3) the amount of principal which was paid during the 48 month term of the loan.
Expert Answer:
Answer rating: 100% (QA)
CASEA Here I have considered interest is reinvested in such account Please go through the table below SL NO YEAR Opening balance AMOUNT INTEREST 65 TOTAL 1 1 1100000 400000 97500 1597500 2 2 1597500 4... View the full answer
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
Posted Date:
Students also viewed these accounting questions
-
You have decided to start planning for your retirement by analyzing different retirement plans. The plan offered by IRA Managers requires you to deposit $5,000 at the beginning of each of the next 30...
-
You have decided to spend $40 this month on CDs and movies. The total benefits you receive from different quantities of CDs and movies are shown in the table below. The price of a CD is $10 and the...
-
A company deposits $12,000 at the beginning of each quarter into an account that earns 7.2% compounded quarterly. How much will be in this account after 5 years? (a) State whether the problem relates...
-
The enzyme Stell participates in several distinct MAP kinase signaling pathways in the budding yeast S. cerevisiae. What is the substrate for Ste 11 in the mating factor signaling pathway? When a...
-
You have the following information for Vincent Inc. for the month ended October 31, 2014. Vincent uses a periodic method for inventory. Instructions (a) Calculate (i) ending inventory , (ii) cost of...
-
Describe the purposes of audit documentation and explain why each purpose is important.
-
Crawford-Austin Properties included the following stockholders' equity on its year-end balance sheet at December 31, 2006. Requirements 1. Identify the different issues of stock that Crawford-Austin...
-
Selected data from Nikes financial statements for the period 20052009 follow: Required a. Liquidity 1. Review the summary analysis for Nike, Inc., from 20072009. Give your opinion of the liquidity...
-
For the compound epicyclic gear train shown in Fig. 15.17, z = 60, z= 40, and z = 25. Find z, and the speed of shaft connected to arm E,if the speed of shaft connected to sun gear is 120 rpm ccw and...
-
YWS is considering the purchase of equipment for $100,000 to fund a program that will provide the following cash inflows: Year 1 - $25,000, Year 2 - $40,000, and Year 3 - $50,000. Calculate the...
-
During the summer of 2019, Hurricane Dorian languished off the coast of Florida before weakening and making landfall in North Carolina. While it threatened Florida, the local residents scrambled to...
-
Flint Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial...
-
As Superintendent Field, how can you align the strategic objectives of the National Park Service with the redevelopment of Caneel Bay? Given the mission of the National Park Service, which...
-
Beginning inventory is 1 0 0 0 units which cost $ 2 5 each. During the month, 4 0 0 0 units were purchased for $ 2 9 each. 3 6 0 0 units were sold for $ 6 0 each. How much more ( less ) would income...
-
What is the principal economic definition of a natural monopoly, and what issues arise from this situation in the energy sector? Examine and compare the economics of the regulatory approaches that...
-
Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure...
-
Consider the equation 3 - cot = 0. Find all the values of in the interval [0,2] that satisfy the equation. Note: Write the exact answer but not the approximate value (For example write or 4/5 but not...
-
On August 31, 2012, the balances of the accounts appearing in the ledger of Wood Interiors Company, a furniture wholesaler, are as follows:Prepare the August 31, 2012, closing entries for Wood...
-
The Findlay Company has debentures outstanding (par value = $1,000) that are convertible into common stock at a price of $50 per share. The convertible bonds have a coupon interest rate of 9 percent...
-
Torbet Fish Packing Company wants to accumulate enough money over the next 10 years to pay for the expected replacement of its digitalized, automated scaling machine. The new machine is expected to...
-
Define float and describe the difference between disbursement float and deposit float.
-
Scooter Mike sells pocket rockets, mini choppers, and all-terrain vehicles. The company has launched a new advertising campaign to intro- duce its products to the public. Requirements Scooter \like...
-
Harley's of Chicago's trial balance pertains to December 31, 2009. Adjustment data at December 31, 2009: a. Prepaid rent expired, $3,000. b. Depreciation, $5,000. c. Accrued salaries, $1,000. d....
-
Assume the following transactions occurred between Heights Pharmacy and Procter 6v Gamble (PcvG), the consumer products company, during August of the current year. Requirements Journalize these...
Study smarter with the SolutionInn App