Find the value of the annuity and the interest. Round to the nearest dollar. ------)) A A= P[(1+0)¹-1] A= Periodic Deposit $10,000 at the end of every three months Rate: 4.25% compounded quarterly Time: 4 years

Find the value of the annuity and the interest. Round to the nearest dollar. ------)) A A= P[(1+0)¹-1] A= Periodic Deposit $10,000 at the end of every three months Rate: 4.25% compounded quarterly Time: 4 years

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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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Tt.7.

K
Find the value of the annuity and the interest. Round to the nearest dollar.
nt
1:31 A
8
nt
A =
P[(1+)¹-1]
r
A=
P=
Periodic Deposit: $10,000 at the end of every three months
Rate: 4.25% compounded quarterly
Time: 4 years
OA. $43, $159,957
OB. $173,405, $13,405
OC. $162, $159,838
OD. $1,114,581, $954,581

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