8) At what interest rate should $15,000 be deposited to have $50,000 available within 5 years? Consider that interest is capitalized semiannually.

Q: What's the present value of $15,500 discounted back 5 years if the appropriate interest rate is…

A: Present Value = Future Value/(1 + r)^t Where, Here, Future Value = $15,500 n = 5*2 = 10 periods r =…

Q: What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000…

A: Data given: Annuity=$2250 Additional at the end of Year 4=$3000 n=4 Interest rate=5%   Required:…

Q: A perpetuity-due with annual payments of 100 has a duration of 26.88 years at an annual effective…

A: Annual payment = 100 Duration of perpetuity due = 26.88 i = Interest rate

Q: For each of the following situations involving annuities, solve for the unknown. Assume that…

A: INTRODUCTION: An Annuity is a form of bond that provides the bearer with a stream of periodic…

Q: 2. Find an expression in terms of the nominal interest rate convertible quarterly for the…

A: Nominal interest rate=rCompounded quarterly=44 months annuity=$640Period=21 yearsTotal period=21 x…

Q: What is the future value of $650 deposited for one year earning an 10 percent interest rate…

A: In the given question we require to calculate the future value of $650 deposited today for one year…

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

Q: What is the future value of an ordinary annuity that pays $2,800 per year for 6 years? The…

A: Annuity refers to a stream of constant and fixed cash flows that occur on a periodic basis.As this…

Q: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?

A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800

Q: What is the present value of a perpetuity of $8,447 per year given an interest rate of 8.2%,…

A: A perpetuity is an annuity stream of cash flows that continues forever.

Q: Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise…

A: As per the time value of money concept Value of the today's money is more important than the money…

Q: What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded…

A: The future value concept refers to the value of money in the future when it is kept as savings or…

Q: What is the present value of $2,000 that will be received after 4 years if the interest rate is 12%…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: (a) An annuity immediate has semiannual payments of P 10,000 for 10 years at a rate of 6% convert-…

A: The present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: What sum deposited today at 5% compounded annually for 13 years will provide the same amount as…

A: A series of payment made at the end of each period with equal intervals of time is an ordinary…

Q: Under what interest rates would you prefer a perpetuity that pays $2 million a year to a one- time…

A: This question require us to compute the interest rate in case of a perpetuity.

Q: consider a $5,600 deposit earning 10 percent interest per year for 10 years. What is the future…

A: Deposit  amount = $ 5,600 Interest rate = 10% Period = 10 Years

Q: If $16800 is deposited in a savings account today, what amount will be available three years from…

A: Future value is an estimate of the future cash flows ​​that may be received at a future date,…

Q: A company needs to buy an annuity package that will provide a future income to an individual over a…

A: Annuity amount, A1 = £4,421 Period, n1 = 13 years Interest rate per period, r1 = 4.0% The present…

Q: What is the future value of a 9%, 5-year ordinary annuity that pays $450 each year? Do not round…

A: The formula used to calculate future value of annuity is FV of ordinary annuity = Pmt*((1+r)n-1 )/r…

Q: Assume that a deposit made on January 1, 2020, earns 6% interest. The deposit plus interest…

A: The questions above differ from each other in terms of the number of compounding periods in a year.…

Q: What's the present value of a perpetuity

A: The present value of perpetuity is determined by dividing the amount of regular cash flow by the…

Q: How much will a registered retirement savings deposit of $23 700.00 be worth in 8 years at 6.54%…

A: Given, Principal amount = $23,700 Time (t) = 8 years Rate of interest (r) = 6.54%

Q: 9. Examine the time line for the annuity shown. 250 (1.015) 250 (1.015) 250 (1.015) 250 (1.015)23…

A: a) Duration of annuity = 6 years         In this question annuity for 24 periods of 3 months,…

Q: With an interest rate of 5 percent per year, what is the present value on December 31, 2020 of…

A: Present value is also known as a present discounted value, in which the future value of cash inflows…

Q: What's the present value of $2,500 discounted back 5 years if the appropriate interest rate is 4.5%,…

A: Present value is a concept used in finance to represent the current worth of a sum of money or a…

Completing the Accounting cycle

An accounting cycle is a multiple-step process that analyzes, verify, record and summarize the entities financial data. The accounting cycle starts when the transaction occurs between two parties and ends when the transaction is completed. The accounting cycle changes the entity's financial position as it involves identifying, verifying, and recording the financial transaction in chronological order. Financial position is the summary of business transactions that occurred throughout the particular accounting period. The accounting cycle recurs at the beginning of each financial year.