Question

In: Finance

Ada Hotel Group has set up a pension fund for employee benefits. The company plans to...

Ada Hotel Group has set up a pension fund for employee benefits. The company plans to put $50,000 in the fund at the end of each quarter. If this is a 20-year fund that earns 6.4% annual interest compounded quarterly, what would be fund balance at the end of 20 years?

a. $7,459,234.56

b. $9,268,201.30

c. $8,001,194.75

d. $10,238,430.10

Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Question 1 A company borrowed $ 74,500. The company plans to set up a sinking fund...
Question 1 A company borrowed $ 74,500. The company plans to set up a sinking fund that will pay back the loan at the end of 6 years. Assuming a rate of 6% compounded semiannually, find the Sinking Fund of the ordinary annuity.                                                                 An employee decided to invest $ 1,960 quarterly for eight years in an ordinary annuity at 20%. What is the total cash value of the annuity at end of year 8?            What must YOU...
Retirement plans: Julio works for a company with a defined benefits (DB) pension plan, which pays...
Retirement plans: Julio works for a company with a defined benefits (DB) pension plan, which pays 3.1% of his last year's salary for each year of employment. He plans to retire after 35 years and expects his salary to be $180,000 in his last year of work. While he will be working during these 35 years, he thinks he can earn 14% every year on his investments. After his retirement, he annually needs 75% of his income in his last...
In general, no longer do Social Security benefits and employee pension plan benefits cover enough of...
In general, no longer do Social Security benefits and employee pension plan benefits cover enough of the typical retiree’s expenses. More and more firms are discontinuing previous commitments to providing generous pension plans to employees. Two major types of employee retirement plans are a defined benefit plan and a defined contribution plan. Respond to the following in a minimum of 175 words: Discuss advantages and disadvantages of both retirement plans: defined benefit and a defined contribution. If you were allowed...
In general, no longer do Social Security benefits and employee pension plan benefits cover enough of...
In general, no longer do Social Security benefits and employee pension plan benefits cover enough of the typical retiree’s expenses. More and more firms are discontinuing previous commitments to providing generous pension plans to employees. Two major types of employee retirement plans are a defined benefit plan and a defined contribution plan. Respond to the following in a minimum of 175 words: Discuss advantages and disadvantages of both retirement plans: defined benefit and a defined contribution. If you were allowed...
Question 1 In a defined contribution pension plan, the retirement benefits to the employee are not...
Question 1 In a defined contribution pension plan, the retirement benefits to the employee are not defined. True or False Question 2 Saved Employees are not allowed to make contributions to a defined contribution pension plan. True or False Question 3 Current service cost is usually the largest single component of pension expense under a defined benefit pension plan. True or False Question 4 In a defined contribution plan, employers run the risk of high pension contributions. True or False...
Describe the compensation and employee benefits related to government service. Exclude pension.
Describe the compensation and employee benefits related to government service. Exclude pension.
Assume that a pension fund is fully funded and that the manager plans to invest all...
Assume that a pension fund is fully funded and that the manager plans to invest all money in a single-maturity zero to immunize the fund. The yield curve is flat at 6% and the pension fund has the following obligations: Time in years.    0 1 2 3 4 5 6 7 8 9 10 Obligation (in $MM) $5 7 10 12 15 18 20 25 30 35 c. How much needs to be invested in the zero coupon bond to...
What legislative act controls the operation and administration of employee welfare and pension plans?  
What legislative act controls the operation and administration of employee welfare and pension plans?  
A small company wishes to set up a fund that can be used for technology purchases...
A small company wishes to set up a fund that can be used for technology purchases over the next 6 years. Their forecast is for $22,000 to be needed at the end of year 1, decreasing by $2,000 each year thereafter. The fund earns 9% per year. How much money must be deposited to the fund at the end of year 0 to just deplete the fund after the last withdrawal? $
What are the requirements for reporting pension and OPEB plans in the government-wide and fund financial...
What are the requirements for reporting pension and OPEB plans in the government-wide and fund financial statements? Discuss the importance and reasoning behind the requirements.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT