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Andrei [34K]
4 years ago
9

On January 15, 2020, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2024, at an

estimated cost of $8,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2020. Future value factors are as follows: Dolan should make four annual deposits ofA. $2,000,000 B. $1,567,060 C. $1,723,766. D. 54,967,401
Business
1 answer:
Andreyy894 years ago
6 0

Answer:

Annual deposit (PMT) = $1,567,060.39

Explanation:

Given:

Future value of annuity due = $8,000,000

Rate of interest(r) = 10% = 0.1

Number of year (n) = 4 year

Annual deposit (PMT) = ?

Computation of annual deposit :

Future\ value\ of\ annuity\ due = PMT [\frac{(1+r)^n-1}{r} ](1+r)\\\\8,000,000 = PMT [\frac{(1+0.1)^4-1}{0.1} ](1+0.1)\\\\8,000,000 = PMT [\frac{(1.1)^4-1}{0.1} ](1.1)\\\\8,000,000 = PMT [\frac{(0.4641}{0.1} ](1.1)\\\\8,000,000 = PMT [5.1051]\\PMT = 1,567,060.39

Annual deposit (PMT) = $1,567,060.39

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Answer and Explanation:

The computation of the balance outstanding at the end of the month 2 is shown below:

Month   Due balance  Interest  Monthly     Balance        Oustanding

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1            $7,000           $210         $700          $490              $6,510

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2           $6,510            $195.30    $700          $504.70        $6,005.30

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Oriole Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $52000 that will
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$ 0.61 per unit

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Answer:

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First, the Multiple Choices

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B. Accounts Payable, Receiving, and Inventory Control Departments.

C. Accounts Payable, Accounts Receivable, and Receiving Departments.

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