How much accumulated in sosas deferred compensation account

Assignment Help Accounting Basics
Reference no: EM131797673

Problem

Under the MLB deferred compensation plan, payments made at the end of each year accumulate up to retirement and then retirees are given two options. Option 1 allows the retiree to select the amount of the annual payment to be received, and option 2 allows the retiree to specify over how many years payments are to be received. Assume Sosa has had $5,000 deposited at the end of each year for 40 years, and that the long-term interest rate has been 7%.

Required:

a. How much has accumulated in Sosa's deferred compensation account?

b. How much will Sosa be able to withdraw at the beginning of each year if he elects to receive payments for 20 years?

c. For how many years will Sosa be able to receive payments if he chooses to receive $115,000 per year at the beginning of each year?

Reference no: EM131797673

Questions Cloud

What is difference between goodwill and minority interest : What is the difference between Goodwill and Minority Interest and where do these items appear on the balance sheet
Compute the long-term liabilitiesfor spartan : Spartan Sportswear's current assets consist of cash, marketable securities, accounts receivable, and inventories. Compute the Long-term liabilitiesfor Spartan.
Calculate electricity bill with person name : Write c++ programm calculate electricity bill with person name, use, id
Shows a victimization rate : A survey shows that 10% of the population is victimized by property crime each year. A random sample of 527 older citizens (65 years or more of age).
How much accumulated in sosas deferred compensation account : How much has accumulated in Sosa's deferred compensation account? How much Sosa be able to withdraw at beginning of each year if he elects to receive payments.
Nonviolent crimes in a state prison system : A random sample of 113 felons convicted of nonviolent crimes in a state prison system completed a program designed to improve their education.
How much FICA tax must the sole proprietorship pay on wages : Both wages are reasonable for the work they perform. How much FICA tax must the sole proprietorship pay on the wages
How much of own miney have used : How much of your own miney have you used? And after suprisingly horrible earnings news the price of GOOG shares falls to $30 per share. What is your margin now?
Summarize your conclusions in a sentence or two : In a random sample of 150 urban precincts, 49% of the voters rejected the proposal. Is the difference significant? Summarize your conclusions in a sentence

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd