On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,000by September 1, year 5. ABC plans to make four equal annual deposits to a fundthat will learn interest at 10% compounded annually. ABC made the first depositon September 1, year 1. Future value and future amount factors are as follows:Future value of P1 at 10% for 4 periods (1.46), Future amount of ordinary annuityof P1t 10% for four periods (4.64), Future amount of annuity in advance of P1 at10% for four periods (5.11). What amount of four annual deposits shall be made?

When an equal amount is paid every period at the beginning of each period, it is called as an…

Answered: On March 15, year 1, ABC Corporation…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1EB: Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the...

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Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
On March 15, year 1 ABC Corporation adopted a plan to accumulate P1,000,000 by September 1, year 5. ABC plans to make four equal annual deposits to a fund that will learn interest at 10% compounded annually. ABC made the first deposit on September 1, year 1. Future value and future amount factors are as follows: Future value of 1 at P1 at 10% for 4 periods (1.46) , Future amount of ordinary annuity of P1 at 10% for four periods (4.64), Future amount of annuity in advance of P1 at 10% for four periods (5.11). What amount of four annual deposits shall be made?
On March 15, 20x1, Ashe Company adopted a plan to accumulate P5,000,000 by September 1, 20x5. Ashe plans to make four equal annual deposits to a fund that will earn interest at 10% compounded annually. Ashe made the first deposit on September 1, 20x1. FV of 1 at 10% n-4 1.46 FV of OA of 1 at 10% n-4 4.64 Fv of AD of 1 at 10% n-4 5.11 What is the amount of annual deposit?
The Bello Corporation wishes 1 po to accumulate P2,000,000 for plant expansion. The funds are required on January 1, 2011. Bello intends to make five equal annual deposits in a fund that will earn interest at 7% compounded annually. The first deposit is made on January 1, 2006. Present value and future value facts are as follows: Present value of $1 at 7% for 5 periods Present value of an ordinary annuity of 1 at 7% for 5 periods Future value of an ordinary annuity of 1 at 7% for 5 periods Future value of an annuity due of 1 at 7% for 5 periods What is the amount of the required annual deposit? .713 4.10 5.75 6.15
On April 12, 2019, BOBOT Company adopted a plan to accumulate P5,000,000 by July 1, 2023. BOBOT plans to make four equal annual deposits to a fund that will earn interest at 10% compounded annually. BOBOT made the first deposit on July 1, 2019. Future value factors are as follows: Future value of 1 at 10% for 4 periods 1.46 Future amount of ordinary annuity of 1 at 10% for 4 periods 4.64 Future amount of annuity in advance of 1 at 10% for 4 periods 5.11 How much annual deposit should BOBOT Company make for four years in order to accumulate the desired amount on July 1, 2023 (rounded)? a. P730,000 b. P978,500 c. P1,250,000 d. P1,077,500
3) Payments of $2500 made at the beginning of each semiannual period for 15 years at 4% compounded semiannually Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. Please show all workings step by step
On January 1, 2025, Sandhill Company decided to begin accumulating a fund for asset replacement five years later. The company plans to make five annual deposits of $59000 at 7% each January 1, beginning in 2025. What will be the balance in the fund, on January 1, 2030 (one year after the last deposit)? The following 7% interest factors may be used. 4 periods 5 periods 6 periods O $339294 O $315650 O $295000 O $363044 Present Value of Ordinary Annuity. 3.3872 4.1002 4.7665 Future Value of Ordinary Annuity. 4.4399 5.75074 7.15329
3) Payments of $2500 made at the beginning of each semiannual period for 15 years at 4% compounded semiannually Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period.
CPLF borrows P2,500,000 from Bank DAAE at 11% interest to be paid at the end of each year for 15 years. Find for the annual total payments under (a) equal annual amortization and (b) equal principal payment methods. Construct a complete amortization schedule (as shown below) for each scheme.
Treating each as a separate event answer the following: A. If $12,000 is deposited annually starting on January 1, 2020 and it earns 9%, how much will accumulate by December 31, 2029? B. Calculate the future value of an annuity due of $12,000 for 10 periods at 9% C. Steve Milner borrowed $120,000 on July 1, 2020. This amount plus accrued interest at 8% compounded semiannually is to be repaid in total on July 1, 2030. To retire this debt, Milner plans to contribute to a debt retirement fund five equal amounts starting on July 1, 2025 and continuing for the next four years. The fund is expected to earn 6% per annum. Compute how much must be contributed each year by Steve Milner to provide a fund sufficient to retire the debt on July 1, 2030? D. Andrea is 40 years old today and she wishes to accumulate $2,000,000 by her sixty fifth birthday so she can retire to a beach in Florida. She wishes to accumulate this amount by making equal deposits on her fortieth through her sixty fourth…
A sinking fund is established to discharge a debt of $80,000 in 5 years. If deposits are made at the end of each 6-month period and interest is paid at the rate of 8%, compounded semiannually, what is the amount of each deposit? (Round your answer to the nearest cent.)

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