Calculate answers to the following scenarios using present value tables: a. If $100 is deposited into an account paying 8 percent simple interest, what will be the value of the account in 5 years? b. If an accumulation of $8,000 is desired at the end of
4 years, what amount must be deposited now to accomplish that goal, assuming 12 percent interest compounded annually? c. What is the present value of $300 received at the end of each year for 4 years, assuming 9 percent interest compounded annually? d. What amount must be deposited at the bank today to grow to $10,000 in 5 years, assuming 14 percent interest compounded semiannually?
a. $140 [(100 x 0.08 x 5 ) + $100]
b. $5,088 [8,000 x 0.636 (PV of $1)]
c. $972 [300 x 3.240 (PV of O.A.)]
d. $5,080 [10,000 x 0.508 (PV of $1 @ n = 10, i = 7%)]
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The bookkeeper recorded a payment by check for the purchase of store supplies as a debit to Store Supplies and a credit to Cash for $1,340.56 . The check was recorded by the bank at its correct amount of $3,140.56 . Prior to the preparation of the bank reconciliation, the error would cause:
a. the trial balance to be out of balance. b. the Accounts Payable account to be understated. c. the Cash account to be understated. d. the Store Supplies account to be overstated. e. a possibility that the checking account might become overdrawn.
When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered as accepted
Indicate whether the statement is true or false
Assume that you have a binomial experiment with p = 0.4 and a sample size of 50 . The variance of this distribution is
a. 20 b. 12 c. 3.46 d. 2.83
Companies that purchase inventories that are primarily in finished form for resale to customers are known as:
A. Manufacturing companies. B. Service companies. C. Delivering companies. D. Merchandising companies.