Pineapple Enterprises has an outstanding liability that will require them to payApple Co. $50,000 in 5 years. How much cash would Pineapple need to deposittoday into an account, earning 8% interest, compounded quarterly, in order tohave the amount needed in 5 years?Select one:O a. $12,532O b. $33,650O C. $34,030d. $45,285e. None of the above

Question
Asked Apr 1, 2019
237 views
Pineapple Enterprises has an outstanding liability that will require them to pay
Apple Co. $50,000 in 5 years. How much cash would Pineapple need to deposit
today into an account, earning 8% interest, compounded quarterly, in order to
have the amount needed in 5 years?
Select one:
O a. $12,532
O b. $33,650
O C. $34,030
d. $45,285
e. None of the above
help_outline

Image Transcriptionclose

Pineapple Enterprises has an outstanding liability that will require them to pay Apple Co. $50,000 in 5 years. How much cash would Pineapple need to deposit today into an account, earning 8% interest, compounded quarterly, in order to have the amount needed in 5 years? Select one: O a. $12,532 O b. $33,650 O C. $34,030 d. $45,285 e. None of the above

fullscreen
check_circle

Expert Answer

Step 1

Determine the present value of 1.

 

fullscreen
Step 2

Calculate the required deposit for the present day:

fullscreen
Step 3

 

Answer:

Pineapple enterprises need to deposit $33,648.57 into ...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: The partnership of Avery and Kirk was formed on July 1, when George Avery and Dinah Kirk agreed to i...

A: Partnership: Partnership refers to the business run by two or more individuals based on some agreed ...

question_answer

Q: Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in ...

A: Break-even point: Break-even point of sales is that level of sales at which the firm is neither earn...

question_answer

Q: Problem 11-2A (Part Level Submission) The stockholders’ equity accounts of Cheyenne Corp. on Januar...

A: Calculating the value of dividends paid to common stockholder. We have,The value of dividend paid to...

question_answer

Q: Problem 13-9Cheyenne Company offers an MP3 download (seven-single medley) as a premium for every 5 c...

A: Workings:1 

question_answer

Q: Under what situation will return on equity be higher than return on investment? a. When assets excee...

A: (a) When assets exceed liabilities:Suppose assets is $ 70,000 and liabilities is $ 50,000 and net in...

question_answer

Q: Krammer Company has liabilities equal to one fourth of the total assets. Krammer's stockholders' equ...

A: Accounting Equation: Accounting equation is the mathematical representation of the relationship amon...

question_answer

Q: The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thi...

A: Click to see the answer

question_answer

Q: I need help solving this problem. The entire question did not fit in the screen grab I took so I cop...

A: a)  Prepare a cost of production report: 

question_answer

Q: The December bank statement and cash T-account for Stewart Company follow:   BANK STATEMENT D...

A: An outstanding deposit is a company's receipts which have been recorded by the company, but the amou...