MY NOTESASK YOUR TEACHERApollo Enterprises has been awarded an insurance settlement of $6,000 at the end of each 6 month period for the next 13 years. (Round your answers to the nearest cent.)(a) As the accountant, calculate how much (in $) the insurance company must set aside now at 6% interest compounded semiannually to pay this obligation to Apollo.%$4(b) How much (in $) would the insurance company have to invest now if the Apollo settlement was changed to $3,000 at the end of each 3 month period for 13 years and the insurance companyearned 8% interest compounded quarterly?$4(c)How much (in $) would the insurance company have to invest now if the Apollo settlement was paid at the beginning of each 3 month period rather than at the end?$4%24

A)PV= PMT(1-(1+r/n)-nt)/(r/n) PMT=6000 r=6% n=2 For semi annually t=13 years…

T NOTES ASK YOUR TEACHEI Apollo Enterprises has been awarded an insurance settlement of $6,000 at the end of each 6 month period for the next 13 years. (Round your answers to the nearest cent.) (a) As the accountant, calculate how much (in $) the insurance company must set aside now at 6% interest compounded semiannually to pay this obligation to Apollo. %2$ (b) How much (in $) would the insurance company have to invest now if the Apollo settlement was changed to $3,000 at the end of each 3 month period for 13 years and the insurance company earned 8% interest compounded quarterly? 24 (c) How much (in $) would the insurance company have to invest now if the Apollo settlement was paid at the beginning of each 3 month period rather than at the end? %24

T NOTES ASK YOUR TEACHEI Apollo Enterprises has been awarded an insurance settlement of $6,000 at the end of each 6 month period for the next 13 years. (Round your answers to the nearest cent.) (a) As the accountant, calculate how much (in $) the insurance company must set aside now at 6% interest compounded semiannually to pay this obligation to Apollo. %2$ (b) How much (in $) would the insurance company have to invest now if the Apollo settlement was changed to $3,000 at the end of each 3 month period for 13 years and the insurance company earned 8% interest compounded quarterly? 24 (c) How much (in $) would the insurance company have to invest now if the Apollo settlement was paid at the beginning of each 3 month period rather than at the end? %24

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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