Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire

Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire

Accounting


Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 15 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown , FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 
Employee Tinkers Evers Chance 
Required: 
Annual Payment $29,000 34,000 39,000 
Compute of First Payment 12/31/21 12/31/22 12/31/23 
A uompute present value of the pension obligation to these three employees as of December 31, 2018. Assume a 12% interest 
rate. 2. The company wants to have enough cash invested at December 31, 2021, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to a fund that will earn 12% interest compounded annually. The first contribution will be made on December 31, 2018. Compute the amount of this required annual contribution. (For all requirements, Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) 
 

Option 1

Low Cost Option
Download this past answer in few clicks

3.95 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

Related Questions