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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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WHAT IS THE AMOUNT THAT A $15000 INVESTMENT TODAY WOULD ACCUMUALTE

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WHAT IS THE AMOUNT THAT A $15000 INVESTMENT TODAY WOULD ACCUMUALTE AT A 10%(COMPOUND INTEREST) BY THE END OF 6 YEARS? B) TOM CRONE WANTS TO RETIRE AT THE END OF THIS YEAR (2009). HIS LIFE EXPECTANCY IS 20 YEARS FROM HIS RETIREMENT. TOM HAS COME TO YOU, HIS CPA, TO LEARN HOW MUCH HE SHOULD DEPOSIT ON DECEMBER 31, 2009 TO BE ABLE TO WITHDRAW $50000 AT THE END OF EACH YEAR FOR HE NEXT 20 YEARS, ASSUMING THE AMOUNT ON DEPOSIT WILL EARN 8% INTEREST ANNUALLY.
Submitted: 7 years ago.
Category: Tax
Expert:  Lev replied 7 years ago.

WHAT IS THE AMOUNT THAT A $15000 INVESTMENT TODAY WOULD ACCUMUALTE AT A 10%(COMPOUND INTEREST) BY THE END OF 6 YEARS?

 

$26,573 - see attached

graphic

 

B) TOM CRONE WANTS TO RETIRE AT THE END OF THIS YEAR (2009). HIS LIFE EXPECTANCY IS 20 YEARS FROM HIS RETIREMENT. TOM HAS COME TO YOU, HIS CPA, TO LEARN HOW MUCH HE SHOULD DEPOSIT ON DECEMBER 31, 2009 TO BE ABLE TO WITHDRAW $50000 AT THE END OF EACH YEAR FOR HE NEXT 20 YEARS, ASSUMING THE AMOUNT ON DEPOSIT WILL EARN 8% INTEREST ANNUALLY.

 

$490,908 - see attached schedule

graphic

 

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