Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $9,000 in 2018 and $45,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to 2018. Complete all input boxes. Enter a "O" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.) Northern's 2018 dividend would be divided between preferred and common stockholders in this manner: 9000 Total Dividend 2018 Dividend to preferred stockholders: Dividend in arrears Current year dividend Total dividend to preferred stockholders 8800 (9000) Dividend to common stockholders

Answers

Answer 1

Answer:

The first part of the question is missing, so I looked for a similar question. I'm not sure that it is the same, but it can help you understand how to solve it.  

Paid-In Capital:

Preferred Stock—5%, $11 Par Value; 150,000 shares authorized, 20,000 shares issued and outstanding : $220,000

Common Stock—$2 Par Value; 575,000 shares authorized, 380,000 shares issued and outstanding : 760,000

total dividends distributed:

2018: $9,000

2019: $45,000

preferred dividends = $220,000 x 5% = $11,000

Distributed dividends:

2018:

$9,000 in dividends distributed to preferred stockholders, $0.45 per preferred stock.

2019:

$13,000* in dividends distributed to preferred stockholders, $0.65 per preferred stock.

$32,000 in dividends distributed to common stockholders, $0.084 per common stock.

Since preferred dividends are cumulative, if they are not paid off during a certain year, they will have to be paid in the future before any common dividends are distributed.


Related Questions

At Bargain Electronics, it costs $29 per unit ($15 variable and $14 fixed) to make an MP3 player at full capacity that normally sells for $40. A foreign wholesaler offers to buy 3,200 units at $28 each. Bargain Electronics will incur special shipping costs of $2 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Accept Net Income Order Order Increase (Decrease)Revenues $ $ $Costs-Manufacturing ShippingNet income $ $ $The special order should be rejected accepted.

Answers

Answer:

Bargain Electronics would realize Net Income of $35,200 by accepting the special order.

Decision : The special order should be accepted.

Explanation:

Analysis of net income effect of accepting the special order

Sales ( 3,200 units × $28)                   $89,600

Less Expenses :

Variable ( 3,200 units × $15)             ($48,000)

Shipping Costs ($2 × 3,200 units )     ($6,400)

Incremental Income / (loss)                $35,200

Note that, the fixed costs are irrelevant for this decision. This is because they will remain the same whether or not the special order is accepted.

The top four most economically globalized countries according to KOF Swiss Economic Instituteâs 2007 rankings include:___________.

Answers

Answer:

The top four most economically globalized countries according to KOF Swiss Economic Instituteâs 2017 rankings include:___________.

Netherlands, Ireland, Belgium, and Austria.

Explanation:

The KOF Swiss Economic Institute's ranking of the most economically globalized countries is a ranking of the countries with businesses that have global influence and presence.  The Institute which an index called the KOF Globalisation Index to measure the economic, social and political dimensions of globalisation and rank countries according to their performances.

Next to each item, indicate whether it would most likely be reported on the balance sheet (B), the income statement (1), or the statement of stockholders' equity (SE) Choose
a. Cash (year end balance)
b. Advertising expense
c. Common stock
d. Printing fees earned B, T
e. Dividends
f. Accounts payable
g. Inventory>
h. Equipment

Answers

Answer:

a. balance sheet (B)

b. income statement (1)

c. statement of stockholders' equity (SE)

d. income statement (1)

e. statement of stockholders' equity (SE)

f. balance sheet (B

g.balance sheet (B

h.balance sheet (B

Explanation:

The Balance Sheet consists of balances in the Asset , Liabilities and Equity Accounts and it uses the equation Assets = Equity + Liability.It shows the result as at the end of the Financial Period.

The Income statement comprises of Revenues or Incomes and Expenses. The profit or loss resulting from operation during the financial period is the the end goal of this financial statement.

The  statement of stockholders' equity (SE) shows the interest of the owners of the company and any distributions out of profit that has been made to them during the year.

Which of the following statements is true of radio-frequency identification (RFID) tags?
a. They can help identify genuine products from counterfeit knock-offs.
b. They are designed to learn more about customers' wants, needs, and behaviors.
c. They help firms gain competitive advantage by forecasting customer retention rates.
d. They help identify which customers should be the focus of targeted marketing initiatives.

Answers

Answer:

Correct Answer:

a. They can help identify genuine products from counterfeit knock-offs.

Explanation:

Radio-frequency identification (RFID) tags refers to a technology whereby digital data encoded in RFID tags  are captured by a reader via radio waves. In general, RFID is similar to barcoding in that data from a tag or label are captured by a device that stores the data in a database.

Answer:

a. They can help identify genuine products from counterfeit knock-offs.

Explanation:

Radio-frequency identification: The term "radio-frequency identification" is also referred as RFID, and is described as a phenomenon that utilizes "electromagnetic fields" to track and identify different tags attached to various objects automatically. Therefore, a radio-frequency identification tag generally possesses a small "radio transponder" which is a radio transmitter and receiver. Lastly, when it is being triggered by any "electromagnetic interrogation pulse" from a closed RFID "reader device", then the tag tends to transmit some digital data i.e, inventory number to the reader.

The IRS: a. requires official tax forms be obtained at the local IRS office. b. provides information on how to choose a stock. c. has an app for mobile phones. d. links to the H

Answers

Answer:

c. has an app for mobile phones.

Explanation:

The IRS refers to the Internal Revenue service handled by the government agency based on the Unites States. It is responsible for the tax collection and the imposition of the taxation law.

To check the status of your tax the IRS allows the application in the mobile devices so that everyone could access it anywhere anytime.

Therefore the correct option is c.

The communication tools a company uses to pursue its advertising and marketing objectives is often referred to as the company’s ________.

Answers

Answer:

Promotional mix.

Explanation:

In a person's day to day involvement in business, their are key patterns and methods that are used as target strategies to promote his/her business, Therefore this mix model is explained as the collection of tools you use that explicitly in enhancing of business, products, or services. The keys that are used most times use are personal selling, direct marketing, and sales promotions, also personal approach and also advertising play vital roles too. This model design directly shows its target audience values, features of the products or services you offer. This helps differentiate you from your competition and drive sales.

The shareholders' equity of Green Corporation includes $332,000 of $1 par common stock and $520,000 par of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $62,000 in 2021 after paying $32,000 cash dividends in each of 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021

Answers

Answer:

$16,800

Explanation:

The computation of the amount of dividends common shareholders will receive in 2021 is shown below:-

Dividends per year for preferred stock = Par value × Cumulative preferred stock

= $520,000 × 7%

= $36,400

So, dividends in arrears for preferred stock for years is

For 2017 = Dividends per year for preferred stock - Cash dividend

= $36,400 - $32,000

= $4,400

For 2018 = For 2017 + (Dividends per year for preferred stock - Cash dividend)

= $4,400 + ($36,400 - $32,000)

= $8,800

Total dividends to be paid to preferred stockholders = For 2018 + Dividends per year for preferred stock

= $8,800 + $36,400

= $45,200

Finally

Dividends for common stockholders = Declared Cash Dividend - Total dividends to be paid to preferred stockholders

= $62,000 - $45,200

= $16,800

Pepci co. is issuing a $1,000 par value bond that pays 7 percent annual coupon and mature in 15 years. Investors are expected to pay $925 for the bond. The company is in a 40 percent tax bracket. What will be the firm’s after tax cost of debt?

Answers

Answer:

1,678660

Explanation:

Before deciding on a pricing strategy, Wallmart consults with a strategy team to understand what discounts the Doormart is offering. The model that BEST fits this industry is:

Answers

Answer:

oligopoly

Explanation:

The model that best fits this industry would be an oligopoly. This is a market or industry which is dominated by a small group of very large companies/sellers. In this model, the few companies involved are in direct competition with one another and focus solely on outpricing one another in order to gain a competitive edge. Which is what Wallmart is trying to accomplish by understanding the discounts being offered by Doormart.

27. Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be

Answers

The question is incomplete. The complete question is,

Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be  

Year       Dividend

1        $1.20

2         1.44

3        1.73

4         2.07

After this initial period of super growth, the rate of increase in the dividend should decline to 8 percent. If you want to earn 12 percent on investments in common stock, what is the maximum you should pay for this stock?

Answer:

The maximum that should be paid for the stock today is $40.29

Explanation:

We will use the two stage dividend growth model of DDM to calculate the price of the stock today. The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price under the two stage model is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2 + ... + Dn / (1+r)^n  +  [Dn * (1+g2) / (r - g2)] / (1+r)^n

P0 = 1.2 / (1+0.12)  +  1.44 / (1+0.12)^2  +  1.73 / (1+0.12)^3  +  2.07 * (1+0.12)^4  +  

[2.07 * (1+0.08) / (0.12 - 0.08)] / (1+0.12)^4

P0 = $40.2853 rounded off to $40.29

Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock

Answers

Complete Question:

BenchMark, Inc., just paid a dividend of $3.45 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock.

Answer:

BenchMark, Inc.

The current share price for the stock is:

$43.13

Explanation:

a) Data and Calculations:

Dividend per share = $3.45

Growth rate = 5%

Investors' required rate of return = 13%

Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)

= $3.45/(0.13 - 0.05)

= $43.13

b) We can calculate BenchMark's current share price, by dividing the dividend per share by the investors' required rate of return after subtracting the growth rate from the required rate of return.

Rawls would agree with the idea that inequalities can be justified if they are based on home-country values. redistribute wealth and property benefit those in the highest position. are used to the advantage of everyone. benefit those in the worst position.

Answers

Answer:

benefit those in the worst position.

Explanation:

Rawls theory is based on the concept that no inequalities shall prevail in the country. Although some inequalities are unavoidable.

In those circumstances, when Rawls shall agree to such inequalities, and in-fact, further states that it shall benefit all the people. But for this he states that those in the worst position shall be benefited first and with maximum.

This shall create an equality as these people facing inequality will not be criticised further for any purpose, if they are paid off well in the first instance only.

A company uses the FIFO method for inventory costing. During a period, a production department had 56,000 units in beginning goods in process inventory which were 32% complete; the department completed and transferred 167,000 units. At the end of the period, 14,000 units were in the ending goods in process inventory and are 67% complete.

Compute the number of equivalent units produced by the department.

a. 181,000
b. 158,460
c. 167,000
d. 176,380
e. 111,000

Answers

Answer:

158460 ( B )

Explanation:

Given data :

production department ; 56000 units

process inventory = 32% = 0.32

completed and transferred units = 167000

ending goods units = 14000,      67% complete = 0.67

attached below is the table representation of the solution

The number of equivalent units produced by the department

= ∑ all the variables listed on the table

= 38080 + 11100 + 9380 = 158460

Merlin Anson owns Unix Computers, a company with five employees. As a small business owner, he has several options for payroll processing. What factors should he consider when deciding on which payroll processing option is best for Unix Computers

Answers

Answer: amount of money he wants to spend on the payroll processing. Also, he has to consider the independent contractors

Explanation:

From the question, we are informed that Merlin Anson owns Unix Computers, a company with five employees and that as a small business owner, he has several options for payroll processing.

The factors that he should consider when deciding on which payroll processing option is best for Unix Computers are amount he wants to spend on the payroll processing. Also, he has to consider the independent contractors. These two are essential to know which option is good for the company.

A company’s book value increases when a company retains its net income.
a) true
b) false

Answers

The answer to your question is true.

Tacit collusion is more likely to be a concern with horizontal alliances. vertical alliances. international alliances of any kind compared with domestic alliances. U.S. alliances with companies in less- developed countries.

Answers

Answer:

horizontal alliances

Explanation:

A horizontal alliance is a term that describes a form of arrangements or partnership between businesses that conduct as competitors in the exact area.

In other words, competitors work in unison to enhance their strategy in the market.

On the other hand, Tacit Collusion occurs when firms avoid actions that are likely to require or demand a response from another firm often a competitor. For example, when a firm avoids the opportunity to price cut an opposition due to the fact that, the opposition may retaliate

Hence, Tacit collusion is more likely to be a concern with HORIZONTAL ALLIANCE

You're prepared to make monthly payments of $390, beginning at the end of this month, into an account that pays 7 percent interest compounded monthly. How many payments will you have made when your account balance reaches $23,087?

Answers

Answer:

$ 11,111,000

Hope this helps

mark me as brainloest

Holiday corp has two divisions quail and marlin. quail produces a widget that marlin could use in its production. quails variable cost are $4 per widget while the fulls cost is $7. widgets sell on the open market for $12 each.
A. if quail has excess capacity, what would be the cost savings for Holiday if the transfer was made and marlin currently is purchasing 100,000 units on the open market.
b. what would be the maximum transfer price?
c. if quail is operating at capacity, what would be the minimum transfer price?

Answers

Answer:

a. $800,000

b. $12

c. $12

Explanation:

Cost Savings :

Market Price  ($12 × 100,000 units)                                    $1,200,000

Less Minimum Transfer Price ( $4 × 100,000 units)           ($400,000)

Savings                                                                                   $800,000

Maximum Transfer Price is $12

If quail is operating at capacity, units to meet internal demand would need to be recovered from the external market and that creates an opportunity cost :

Minimum transfer price = Variable Cost per unit - Internal Savings + Opportunity Cost per unit

                                       = $4 + ($12 - $4)

                                       = $4 + $8

                                       = $12

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,980 hours and the total estimated manufacturing overhead was $540,708. At the end of the year, actual direct labor-hours for the year were 21,950 hours and the actual manufacturing overhead for the year was $540,708. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)

Answers

Answer:

$738 Under applied

Explanation:

Calculation for Overhead at the end of the year

First step is to calculate for the POR using this formula

POR=Total estimated manufacturing overhead/Estimated direct labor-hours

Let plug in the formula

POR=$540,708/21,980 hours

POR=$24.6/DLH

Second step is to Calculate for the applied Overhead using this formula

Applied overhead =Actual direct labor-hours ×POR

Let plug in the formula

Applied overhead =21,950 hours×$24.6/DLH

Applied overhead=$539,970

The last step is to for the Overhead at the end of the year

Using this formula

Ending Overhead =Actual manufacturing overhead -Applied overhead

Let plug in the formula

Ending overhead =$540,708-$539,970

Ending overhead=$738 Under applied

Therefore the Overhead at the end of the year will be $738 Under applied due to the debit balance.

Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $297,000, total variable expenses were $222,750, and fixed expenses were $36,900.Required:
1. What is the companyâs contribution margin (CM) ratio?
2. Estimate the change in the companyâs net operating income if it were to increase its total sales by $1,800.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Sales in units= 42,000

Total sales= $297,000

Total variable expenses= $222,750

Total fixed expenses= $36,900

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= (sales - total variable cost) / sales

contribution margin ratio= (297,000 - 222,750) / 297,000

contribution margin ratio= 0.25

Now, the effect on the income of an increase in sales:

Effect on income= contribution margin ratio*increase in sales

Effect on income= 0.25*1,800

Effect on income= $450 increase

List some forms of political risk other than a takeover of a subsidiary by the host government, and briefly elaborate on how each factor can affect the risk to the MNC.Identify common financial factors for an MNC to consider when assessing country risk. Briefly elaborate on how each factor can affect the risk to the MNC.

Answers

Answer with Explanation:

The political risk are the risk that the investors and corporation bears who are affected by the political decisions of government. The adverse impact of political decision making is reduction in earnings, abandoning of operations, government interventions, etc.

Here are some of the political risks that has adverse impact on the operations of Multinational Corporations:

Blocked funds will result in loosing potential investments in other countries due to shortage of fund created by the blockage in movement of funds from one country to other. This blockage is as a result of regulations passed to restrict the use of money generated in a country.Changing tax laws will result in the decrease in earnings for the shareholders and retained earnings for the corporationsPublic revolt against the firm which was to abandon the use of fair treatment like in the case of PIA-Pakistan International Airlines. The company is struggling to lower its losses by rewarding the right person and firing employees who are working as per set standards. The employees has revolted against the firm which has severe impact on the share value in the stock market. The revolt continued for the whole month.Changing Interest rates would result in increase in interest cost to MNC which is also because of government interventions.Attitude of the host government towards MNC is political risk if the host government is willing to tighten controls which includes environmental related regulations, worker's right act, etc. This would increase the cost to the multinational corporations.Corruption and rule of Law effect the most to the corporations because the fraudulent activities can not be stopped if there is no rule of law. It also depends on how long does a legal case takes to be resolved.

The Financial factors includes inflation rate, Exchange rate, GDP growth rate, interest rates, electricity cost, corporation taxes, labor costs, industry specific policies, etc. These factors can result in acceptance or rejections of projects in the country because these are the main financial factors that has tendency to alter the decision of the investors and corporations.

Corporation Taxes and interest rates are discussed above.All the cost related items which includes electricity costs, inflation rates, labor costs, etc are very important element as they are almost more than 50% of total cost of the project. Hence these are the financial factors that has immense importance when assessing country risks and considering potential investment opportunities.Exchange rate are another important element that helps in assessing the country risk of the company. If the investment was profitable but the currency deflated against the MNC's home country then it was not a good decision. The exchange rate fluctuations will also be an important financial factor while making business decisions.GDP growth rate is also one of the significant factor to consider because significant investment value grows if the Gross Domestic Production is growing with great pace and vice versa.

Bramble Corp. can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $58 and takes two machine hours to make and Fancy has a unit contribution margin of $57 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Bramble do?

Answers

Answer:

plain makes a profit of $10

Explanation:

The computation is shown below:

Particulars                              Plain            fancy

Unit contribution margin        $58            $57

Machine hours                         2               3

Contribution margin

per machine hour                  $29               $19

                                ($58 ÷ 2)               ($57 ÷3)

As we can see that the plain makes a profit of $10 that comes from

= $29 - $19

= $10

Net income was $448600 in the current year and $365500 in the prior year. The year to year percentage change in net income is closest to:__________.

Answers

Answer:

The answer is 22.74 perfect

Explanation:

The percentage change is:

[Future value(Current year net income) / Present Value(Prior year net income)] - 1

($448,600/$365,500) - 1

1.2274- 1

0.2274

Expressed as a percentage

22.74 percent.

Alternatively:

(Future value - present value) / present value

($448,600 - $365,500) / $365,500

$83,100/$365,500

0.2274

Expressed as a percentage

= 22.74 percent.

If assets are $365,000 and equity is $120,000, then liabilities are: __________

a. $120,000
b. $245.000
c. $365,000
d. $485,000.
e. $610,000.

Answers

Answer:

b. $245.000

Explanation:

The computation of the liabilities is shown below:

As we know that

The accounting equation comprise  of

total assets = total liabilities + total equity

where,

total assets = $365,000

Total equity = $120,000

So, the total liabilities is

= total assets - total equity

= $365,000 - $120,000

= $245,000

Hence, the total liabilities is b. $245.000

The following are all examples of abnormal items disclosed by the company, except: (4 points) A) Goodwill Impairment Charges B) Royalty Expense C) Intangible Asset Impairment Charges D) Restructuring Charges

Answers

Answer:

Correct Answer:

B) Royalty Expense

Explanation:

A royalty is a payment made by one party, franchisee to another that owns a particular asset, franchisor for the right to ongoing use of that asset. The expenses incurred in executing this payment is called royalty expenses.

How should an organization design its structure and culture to obtain a core competence in manufacturing and in research and development? What is your reasoning?

Answers

Answer and Explanation:

core competency of an organization comprise it's multiple resource, capabilities and skills that gives it a competitive advantage in the market. It was originated in management theory by C. K. Prahalad and Gary Hamel.

For an organization to have core competencies in manufacturing and also research and development putting it's organizational structure and culture to use, it has to:

create a flexible and somewhat independent structure for it's research and development department such that innovation is easy. Control must be decentralized and the team must come first

For the manufacturing department, an organic and participative approach should be encouraged. This would allow inclusive management such that workers are included in decision making processes. Managers should also be given more independence while workers should increasingly be empowered

the organization should also take stringent measures in employing the right people for the research and development as well as the manufacturing department such that these individuals are qualified and possess the needed expertise for their areas. Staff should equally be empowered through constant education and new skill acquisitions and be allowed to impart this knowledge on other staff by encouraging transfers in global expansion.

Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity level 80 guests Variable overhead costs: Supplies $ 144.00 Laundry 600.00 Fixed overhead costs: Utilities 444.00 Salaries and wages 5,120.00 Depreciation 2,900.00 Total overhead cost $ 9,208.00 The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 70 guests

Answers

Answer: $9,115‬

Explanation:

Total budgeted overhead cost =Variable Costs + Overhead costs

The variable costs listed are for an activity level of 80 guests but 70 guests will be coming.

The variable costs will be;

Supplies

= (144 / 80) * 70

= $126

Laundry

= ( 600/80 ) * 70

= $525

The rest are fixed costs so will stay the same regardless of activity level.

Total budgeted overhead cost = 126 + 525 + 444 + 5,120 + 2,900

= $9,115‬

When screening employees for employment to guard sensitive assets,the screener should look for employment data from the following areas:________
a) Former employers
b) State and local police
c) Schools
d) Television producers

Answers

Answer:

When screening employees for employment to guard sensitive assets,the screener should look for employment data from the following areas:________

a) Former employers

Explanation:

Former employers remain the best source of employment data when screening employees for employment.  It is believed that past performances always influence future performances.  As a result, former employers of any worker should be in position to provide sensitive information about the new employee.  However, there is the need to adhere to data privacy by ensuring that the employee consents to the enquiry into his or her past.

"A customer makes an investment in a CMO. In a given year, she receives $24,000 of payments, of which $6,000 is principal and $18,000 is interest. Which statement is TRUE about the taxation of the payments received?"

Answers

Answer:

Only the interest amount received is taxable.

Explanation:

CMO refers to Collateralised Mortgage Operation in this whenever one receives a payment it is joint of some principal and remaining amount as an interest.

The principal received only decreases the debt, that is created in a CMO. Thus, is not to be considered as an income in any manner.

Interest received is a part of income as do not decrease the liability of debt, rather increases the revenue, and is therefore, taxable.

You wish to retire after 20 years; at which time you want to have accumulated enough money to receive an annuity of $60,000 a year for 25 years of retirement. During the period before retirement you can earn 4 percent annually, while after retirement you can earn 3 percent on your money. What annual contribution to the retirement fund will allow you to receive the 60,000 annually?

Answers

Answer:

$35,085.63

Explanation:

we must first calculate the amount of money that you need to receive $60,000 in annual distributions during 25 years. We must use the present value of an annuity formula:

PV = annuity payment x annuity factor

annuity payment = $60,000

annuity factor (3%, 25 periods) = 17.413

PV = $60,000 x 17.413 = $1,044,780

this means that you will need to save $1,044,780 in the remaining 20 years. The annual contribution can be calculated using the future value of an annuity formula:

FV = annuity payment x annuity factor

Fv = $1,044,780

annuity factor (4%, 20 periods) = 29.778

annuity payment = FV / annuity factor = $1,044,780 / 29.778 = $35,085.63

Other Questions
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