Calculate the present value of the following: a-1. Annual payment of $1,100 for 11 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Annual payment of $900 for 16 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-3. Which option would you prefer? b-1. Annual payment of $1,100 for 11 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Annual payment of $900 for 16 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-3. Which option would you prefer? a-1. Present value a-2. Present value a-3. Which option would you prefer? b-1. Present value b-2. Present value b-3. Which option would you prefer?

Calculate the present value of the following: a-1. Annual payment of $1,100 for 11 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Annual payment of $900 for 16 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-3. Which option would you prefer? b-1. Annual payment of $1,100 for 11 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Annual payment of $900 for 16 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-3. Which option would you prefer? a-1. Present value a-2. Present value a-3. Which option would you prefer? b-1. Present value b-2. Present value b-3. Which option would you prefer?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

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Consider a 4-year amortizing loan. You borrow $2,400 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual payment $ ✓Answer is complete and correct. Time b. Prepare an amortization schedule. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. 1 2 3 4 Loan Balance (S) 2,400.00 2,400.00 757.13 1,882.87 x 1,314.03 688 Answer is complete but not entirely correct. Year-End Interest Due on Loan Balance (5) 240.00 188.29 131.40 68.83 Total Year- End Payment ($) 10 757.13 757.13 757.13 757.13 Amortization of Loan (S) 0 517.13 568.84 625.73 688.30
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Subject :- Accounting