Intermediate Accounting 14th Edition

by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.

Published by Wiley

ISBN 10: 0470587237

ISBN 13: 978-0-47058-723-2

Chapter 6 - Accounting and the Time Value of Money - Exercises - Page 344: E6-8a

Answer

82,803.25

Work Step by Step

Present value of an ordinary annuity of 1 for 4 periods at 8%: 3.31213 X 25,000 (Annual withdrawal) = 82,803.25 (Required fund balance on June 30) Note, the number 3.31 comes from present value tables in the back of the book.

Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.