Mark deposits $5,000 in a bank for six years in order to withdraw the six equal yearly sums, beginning Dec. 31 of the first year. Bank offers him two plans. In plan 1 interest rate is 2% compounded quarterly while in Plan 2 interest rate is 8% annual. Determine 

a. Yearly sum for plan 1 

b. Yearly sum for plan 2 

c. Saving or loss of using plan 1 instead of plan 2

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Depreciate the fixed assets according to the schedule. Depreciation is calculated on an annual basis. In the excel spreadsheet, see the tab "Fixed Asset Details" to perform any necessary calculations 1. Trade a vehicle On December 31, 2020 (after depreciation was recorded); the company traded the Toro lawn mower which was acquired on February 1, 2018 (asset #2018-02) for a 2012 Ford F150. In addition to the trade, the company paid $6,000 cash for the new truck. The fair value of the Toro lawn mower on this date was $18,000. Assume that this transaction HAS commercial substance. Once this new asset is purchased, do not depreciale it since it was purchased on the last day of the year. In the excel spreadsheet, see the tab "Fixed Asset Details" to perform any necessary calculations; and update the schedule as needed. Depreciate the fixed assets according to the schedule. Depreciation is calculated on an annual basis. In the excel spreadsheet, see the tab "Fixed Asset Details" to perform any necessary calculations 1. Trade a vehicle On December 31, 2020 (after depreciation was recorded); the company traded the Toro lawn mower which was acquired on February 1, 2018 (asset #2018-02) for a 2012 Ford F150. In addition to the trade, the company paid $6,000 cash for the new truck. The fair value of the Toro lawn mower on this date was $18,000. Assume that this transaction HAS commercial substance. Once this new asset is purchased, do not depreciale it since it was purchased on the last day of the year. In the excel spreadsheet, see the tab "Fixed Asset Details" to perform any necessary calculations; and update the schedule as needed.

Answer rating: 100% (QA)

a Yearly sum for plan 1 500010024466528... View the full answer