A company has a liability of 410,000,000 that is must pay in 26 years. If it can round up the annual interest rate of 3.7 percent how much must it deposit today to fund this liability? A company has a pension liability of $410,000,000 that it must pay in 26 years. If it can earn an annual interest rate of 3.7 percent, how much must it deposit today to fundthis liability?Multiple Choice$140,677,021.20$159,417,572.09$130,545,018.79$153,729,577.72$64,278,729.02

Present Value Can be computed using the formula given below Present Value = 1/(1+r)^1 + 1/(1+r)^2 +…

Answered: A company has a liability of…

A company has a liability of 410,000,000 that is must pay in 26 years. If it can round up the annual interest rate of 3.7 percent how much must it deposit today to fund this liability?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 3RE: Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn...

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Question

A company has a liability of 410,000,000 that is must pay in 26 years. If it can round up the annual interest rate of 3.7 percent how much must it deposit today to fund this liability?

A company has a pension liability of $410,000,000 that it must pay in 26 years. If it can earn an annual interest rate of 3.7 percent, how much must it deposit today to fund
this liability?
Multiple Choice
$140,677,021.20
$159,417,572.09
$130,545,018.79
$153,729,577.72
$64,278,729.02

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