As the chief accountant for Proline Industries you have estimated that the company must pay $100,000...

Transcribed Image Text:

As the chief accountant for Proline Industries you have estimated that the company must pay $100,000 income tax to the IRS at the end of each quarter this year. How much should be deposited now at 8% interest compounded quarterly to meet this tax obligation? Use Table 12-2. Number of years = Periods per year = Compounding periods = Nominal rate = Interest rate per period = Table factor = Annuity payment = Amount to deposit now = As the chief accountant for Proline Industries you have estimated that the company must pay $100,000 income tax to the IRS at the end of each quarter this year. How much should be deposited now at 8% interest compounded quarterly to meet this tax obligation? Use Table 12-2. Number of years = Periods per year = Compounding periods = Nominal rate = Interest rate per period = Table factor = Annuity payment = Amount to deposit now =

Answer rating: 100% (QA)

To calculate the amount that should be deposited now to meet the tax obligation we need to determine the present value of a series of four quarterly p... View the full answer