At the Beginning of 2011, the Loretta Company Issued 10-Year

question 25

Multiple Choice

At the beginning of 2011, the Loretta Company issued 10-year bonds with a face value of $4, 000, 000 due on December 31, 2020.The company will accumulate a fund to retire these bonds at maturity.It will make ten annual deposits to the fund beginning on December 31, 2011.How much must the company deposit each year, assuming that it will earn 12% interest compounded annually?

• A)$363, 636.36
• B)$227, 936.65
• C)$226, 008.92
• D)$203, 514.87

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Definitions:

Inputs into Outputs

The process of transforming resources, information, or efforts into finished goods or desired results.

Product Outputs

The final products, goods, or services produced by a company or organization as a result of its business operations.

Future Viability

The capacity of an organization or idea to continue to grow, adapt, and succeed over time.

Team Diversity

The inclusion of individuals with a variety of backgrounds, skills, attitudes, and experiences in a team.