Following is a table for the present value of $1 at compound interest:Year 6%10%10.9430.90920.8900.8260.8400.7510.7920.6830.7470.621345Following is a table for the present value of an annuity of $1 at compound interest:Year 6%10%10.9430.9091.8331.7362.6732.4873.1703.791234512%0.8930.7970.7120.6360.5673.4654.21212%0.8931.6902.4023.0373.605Using the tables provided, the present value of $7,414.00 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, isOa. $26,727Ob. $7,414Oc. $22,516Od. $17,808

Information is given in the question: The amount received at the end of each year is 7,414 Amount…

Following is a table for the present value of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 0.890 0.826 3 0.840 0.751 0.792 0.683 0.747 0.621 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 1.833 1.736 3 2.673 3.465 4.212 4 5 4 2.487 3.170 3.791 12% 0.893 0.797 0.712 0.636 0.567 12% 0.893 1.690 2.402 3.037 3.605 5 Using the tables provided, the present value of $7,414.00 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is Oa. $26,727 Ob. $7,414 Oc. $22,516 Od. $17,808

Following is a table for the present value of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 0.890 0.826 3 0.840 0.751 0.792 0.683 0.747 0.621 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 1.833 1.736 3 2.673 3.465 4.212 4 5 4 2.487 3.170 3.791 12% 0.893 0.797 0.712 0.636 0.567 12% 0.893 1.690 2.402 3.037 3.605 5 Using the tables provided, the present value of $7,414.00 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is Oa. $26,727 Ob. $7,414 Oc. $22,516 Od. $17,808

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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,man.1
Following is a table for the present value of $1 at compound interest: Year 6% 1 0.943 2 0.890 3 0.840 4 0.792 5 0.747 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 1.833 1.736 2.673 2.487 3.465 3.170 4.212 3.791 10% 0.909 0.826 0.751 0.683 0.621 3 12% 0.893 0.797 0.712 0.636 0.567 12% 0.893 1.690 2.402 3.037 5 3.605 Using the tables provided, the present value of $6,103.00 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is Oa. $14,659 Ob. $6,103 Oc. $18,535 Od. $22,001
Question Calculate the future value of an Annuity immediate of Amount $522 paid Annually for 4 year at the rate of interest of 7%