BUSINESS EXPANSION Village Hardware expands its business at a cost of $ 20000.They expect that the investment will grow at a rate of 10% per year compounded annuall for the next 4 years.(a) Find the future value of the investment.(b) Find the present value of the amount found in part (a) at a rate of 6% compounded annually. Round to the near est dollar at each step. 12. BUSINESS EXPANSION Village Hardware expands its business at a cost of $20,000.They expect that the investment will grow at a rate of 10% per year compounded annuallyfor the next 4 years. (a) Find the future value of the investment. (b) Find the present valueof the amount found in part (a) at a rate of 6% compounded annually. Round to the near-est dollar at each step.

Future Value = I*(1+r)n Where I is the current investment amount , r is the rate of interest…

Answered: BUSINESS EXPANSION Village Hardware…

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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BUSINESS EXPANSION

Village Hardware expands its business at a cost of $ 20000.

They expect that the investment will grow at a rate of 10% per year compounded annuall for the next 4 years.

(a) Find the future value of the investment.
(b) Find the present value of the amount found in part (a) at a rate of 6% compounded annually. Round to the near est dollar at each step.

12. BUSINESS EXPANSION Village Hardware expands its business at a cost of $20,000.
They expect that the investment will grow at a rate of 10% per year compounded annually
for the next 4 years. (a) Find the future value of the investment. (b) Find the present value
of the amount found in part (a) at a rate of 6% compounded annually. Round to the near-
est dollar at each step.

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