Apply the concepts from page 8-6 of the VLN, which cash flow is an annuity?A)$60$70$60$50$60$50$70$70$60$50B)$60$60$60$60$60$60$60$60$60$60C)$60$60$60$60$60D)$60O A, B, and CO B and CO A onlyO D onlyO B only APPENDIX C, TIME VALUE OF MONEY (“TVM") (end oftext, pages C-1 to C-13)"A dollar today is worth more than a dollar in the future."Assumptions:1. The dollar is invested today2. The dollar is earning a positive return» 41+ interestFV $1Simple interest: P x R x TCompound interest-Compounding (Future Value “FV")-Discounting (Present Value "PV"). In Accounting we recordlong term assets and long-term liabilities at their present value(cash equivalent amount); therefore, we mostly use PRESENTVALUE concepts.Two types of CASH FLOWSANNUITY–very specific–it is the same dollar amount thatoccurs the same time each period.SINGLE SUM– A single sum can occur at any time at anyamount. It is possible to have multiple single sum cash flows inan investment; an amount that does not occur at the same timeeach period.A cash flow is either an annuity OR a single sum, it cannotbe both.Ordinary Annuity (Payment = $50)$50 $50 $50 $50 $50 $50 $50 $50 $50 $501 2 3 4 5 6 7 8 9 10Single sum (example of 2 single sums, $500 and $1,000)$500$1,00012345678910An investment with two types of cash flows (annuity ($50payment) and a $1,000 single sum)$1,000$50 $50 $50 $50 $50 $50 $50 $50 $50 $501 2 3 4 5 6 7 8 9 10

An annuity is a series of equal cash flows, or payments, made at regular intervals. The payments…

Apply the concepts from page 8-6 of the VLN, which cash flow is an annuity? A) $60 $70 $60 $50 $60 $50 $70 $70 $60 $50 B) $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 C) $60 $60 $60 $60 $60 D) $60 O A, B, and C O B and C O A only O D only B only

Apply the concepts from page 8-6 of the VLN, which cash flow is an annuity? A) $60 $70 $60 $50 $60 $50 $70 $70 $60 $50 B) $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 C) $60 $60 $60 $60 $60 D) $60 O A, B, and C O B and C O A only O D only B only

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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nnuity. Fill in the missing present values in the following table for an ordinary annuity: Future Value ate Data Table (Click on the following icon O in order to copy its contents into a spreadsheet) it Valuo $298 01 S3.396 92 S615 39 $2.459 07 6% 12% 2.5% 07% 18 0. 27 260 0. Print Done Check A
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
What is the PV of an ordinary annuity with 10 payments of $6,600 if the appropriate interest rate is 5.5%? Select the correct answer. a. $49,766.03 b. $49,754.23 c. $49,771.93 d. $49,760.13 e. $49,748.33
Use the following Annuity Table for questions 1 through 6. Future Value of Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 11.000001.000001.000001.000001.00000 22.050002.060002.080002.100002.12000 33.152503.183603.246403.310003.37440 44.310134.374624.506114.641004.77933 55.525635.637095.866606.105106.35285 66.801916.975327.335927.715618.11519 78.142018.393848.922809.4871710.08901 89.549119.8974710.6366311.4358912.29969 911.0265611.4913212.4875613.5794814.77566 1012.5778913.1807914.4865615.9374317.54874 Present Value of an Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 1.95238.94340.92593.90909.89286 21.859411.833391.783261.735541.69005 32.723252.673012.577102.486852.40183 43.545953.465113.312133.169863.03735 54.329484.212363.992713.790793.60478 65.075694.917324.622884.355264.11141 75.786375.582385.206374.868424.56376 86.463216.209795.746645.334934.96764 97.107826.801696.246895.759025.32825 107.721737.360096.710086.144575.65022 Use the following…
The total amount of present worth for the cash flow diagram below is : $1000 Select one: 2 $500 3 4 a. $305 at interest rate 10% b. Zero at interest rate 10% C. Zero at interest rate 15% d. $305 at interest rate 15% $1500 5
Use the table below to answer the following questions: Period 4 567 8 9 10 11 Present Value of an Annuity of 1 4% Future Value of an Annuity of 1 5% 5% 8% 10% 4% 8% 10% 3.6299 3.5460 3.3121 3.1699 4.2465 4.3101 4.5061 4.6410 4.4518 4.3295 3.9927 3.7908 5.4163 5.5256 5.8666 6.1051 5.2421 5.0757 4.6229 4.3553 6.6330 6.8019 7.3359 7.7156 6.0021 5.7864 5.2064 4.8684 7.8983 8.1420 8.9228 9.4872 5.7466 5.3349 9.2142 9.5491 10.6366 11.4359 7.4353 7.1078 6.2469 5.7590 10.5828 11.0266 12.4876 13.5795 8.1109 7.7217 6.7101 6.1446 12.0061 12.5779 14.4866 15.9374 8.7605 8.3064 7.1390 6.4951 13.4864 14.2068 16.6455 18.5312 6.7327 6.4632 Bobby receives alimony payments every 6 months and the next payment is tomorrow. Median homes go for $950,000 and he wants to save $190,000 in 4 years. How much money should Bobby put away into an investment each time he receives alimony payments if he can get a 8% return a year? $35,593 O $31,624 O $23,131 O $46,262
Use the table below to answer the following questions: Present Value of an Annuity of 1 Future Value of an Annuity of 1 Period 4% 5% 8% 10% 4% 5% 8% 10% 4 3.6299 3.5460 3.3121 3.1699 4.2465 4.3101 4.5061 4.6410 5 4.4518 4.3295 3.9927 3.7908 5.4163 5.5256 5.8666 6.1051 6 5.2421 5.0757 4.6229 4.3553 6.6330 6.8019 7.3359 7.7156 7 6.0021 5.7864 5.2064 4.8684 7.8983 8.1420 8.9228 9.4872 8 6.7327 6.4632 5.7466 5.3349 9.2142 9.5491 10.6366 11.4359 9 7.4353 7.1078 6.2469 5.7590 10.5828 11.0266 12.4876 13.5795 10 8.1109 7.7217 6.7101 6.1446 12.0061 12.5779 14.4866 15.9374 11 8.7605 8.3064 7.1390 6.4951 13.4864 14.2068 16.6455 18.5312 Bobby gets a yearly alimony payment from his ex-wife and wants to save enough to put a 15% down payment on a home in 4 years. Median homes go for $950,000 and are expected to appreciate at the inflation rate of 3%. How much should Bobby put away into an investment each year if he can get a 8% return a year?…
To calculate the withdrawal amount from an account in which you want to maintain a static balance, you use the __________________ formula. Group of answer choices Installment Payment Simple Interest Annuity Compound Interest
Who is the person who will receive lifetime payments from an annuity? OA) Administrator O B) Decedent OC) Executor OD) Annuitant
Convert the cash flow shown in figure B to a future amount at t=7 when i=2%. O a. $1110 $370 $370 $370 O b.$1207.73 O. S1132 O d. $1500 $200 $100 1 2 3 4 $300