Answer:
Amount withdraw each year = $ 186,991.24
Explanation:
Amount accumulate at the time of retirement = FV of Current Investment in Bond + FV of Current Investment in Stock + FV of annuity deposited in bond
Amount accumulate at the time of retirement = 162000 x (1+7.5%)^10 + 602000 x (1+11%)^10 + 7800 x ((1+7.5%)^10 -1) / 7.5%
Amount accumulate at the time of retirement = $ 2,153,565.83
Amount withdraw each year = Amount accumulate at the time of retirement/Annuity factor
Amount withdraw each year = 2153565.83 / ((1-(1+6.75%)^-23) / 6.75%)
Amount withdraw each year = $ 186,991.24
Answer:
$6,414.271
Explanation:
Principal ( Initial deposit) = $2,000
Interest rate = 6% annually = 6/100 = 0.06
Period (Time ) = 20 years.
Number of times it earned (n) = annually (yearly)
Formula to be used =
A = P( 1 + r/n)^nt
A = $2,000( 1 + 0.06/1) ^ 1×20
A = $2,000(1.06) ^20
A = $6,414.271
The total amount on investment in 20 years = $6,414.271
Answer:
$1,600
Explanation:
It is important to note that the company uses accrual basis accounting. The Service Revenue account should be credited for $1,600
