eBookQuestion Content AreaTime Value of Money ConceptThe following situations involve the application of the time value of money concept. Use the full factor when calculating your results.Use the appropriate present or future value table:FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $11. Janelle Carter deposited $9,840 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.2. Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 10% compounded annually. On January 1, 2017, the deposit has accumulated to $13,120. How much money did Lee originally deposit on January1, 2010? Round to the nearest whole dollar. TABLE 9-1 Future Value of $1(N)Periods123456789101112131415161718192022242628302%3%4%1.372791.400241.42825 1.702431.456811.753511.485951.806111.545981.916101.608442.032791.673422.156591.741022.287931.811362.427265%1.800941.87298 2.182871.947902.292022.025822.406622.106852.526952.191122.653302.369922.925262.563303.225102.772472.998703.243406%7%10%1.020001.030001.040001.050001.060001.070001.100001.120001.040401.144901.21000 1.254401.06090 1.08160 1.10250 1.123601.09273 1.12486 1.157631.061211.225041.404931.082431.125511.16986 1.215511.191021.26248 1.310801.338231.46410 1.573521.104081.159271.469331.610511.762341.58687 1.77156 1.973821.948722.210682.14359 2.475961.423311.999002.357952.773081.21665 1.276281.402551.12616 1.19405 1.26532 1.34010 1.41852 1.500731.14869 1.22987 1.31593 1.40710 1.50363 1.60578 1.713821.171661.26677 1.36857 1.47746 1.59385 1.71819 1.850931.19509 1.304771.55133 1.68948 1.838461.21899 1.34392 1.48024 1.62889 1.79085 1.967151.24337 1.38423 1.53945 1.71034 1.89830 2.104851.795862.01220 2.252191.88565 2.132932.26090 2.578532.759032.158922.59374 3.105852.853123.478552.331642.51817 3.138431.268241.425761.601033.895981.293611.468531.665073.45227 4.363491.319481.512591.73168 1.979931.345871.557972.07893 2.396561.604712.540352.952161.652852.692773.158822.40985 2.719622.93719 3.79750 4.887113.17217 4.17725 5.473573.42594 4.59497 6.130393.70002 5.05447 6.866043.99602 5.55992 7.689974.31570 6.11591 8.612764.66096 6.72750 9.646295.43654 8.14027 12.100312.854343.379933.025603.616533.20714 3.869683.603544.430404.048935.072376.341189.84973 15.178634.549387.39635 11.91818 19.040075.111698.62711 14.42099 23.883875.7434910.06266 17.449403.555673.920134.321948%5.807356.648847.6122612%1.080001.166401.25971 1.331001.3604915%1.150001.322501.520881.749012.011362.313062.660023.059023.517884.045564.652395.350256.152797.075718.137069.3576210.7612612.3754514.2317716.3665421.6447528.6251837.8568050.0656129.95992 66.21177 TABLE 9-2 Present Value of $1(N)Periods123456789101112131415161718192022242628302%9803996117942329238590573.88797.87056.8534983676.82035.8042678849.77303.7578874301.72845.7141670016.68643.67297.64684.621725975857437552073%97087942609151488849.86261.83748.81309789417664274409.7224270138.68095.66112.64186.62317.6050258739570295536852189491934636943708411994%9615492456.88900.85480.82193.79031.75992.73069.70259.67556.64958.62480.600575774855526533915133749363474644563942196390123606933348308325%952389070386384.8227078353.74622.71068.67684.64461.613915846855684530325050748102458114363041552395733768934185310072812425509231386%9434089000.83962.79209.74726.70496.66506.62741591905583952679496974688444230417273936537136350343305131180277512469821981.19583.174117%.93458.87344.81630.76290.71299.66634.62275.58201.54393.5083547509.44401.41496.38782.36245.33873.3165729586.2765125842.22571.1971517220.15040.131378%.92593.85734.7938373503.68058.63017.58349.5402750025.46319.42888.39711.36770.34046.31524.2918927027.25025.2317121455.18394.15770.13520.11591.0993810%.90909.82645.75131.68301.62092.5644751316.46651.42410.3855435049.31863.289662633323939.21763.19784.17986.16351.14864.12285.10153.08391.06934.0573112%.89286.79719.71178.63552.56743.50663.45235.40388.36061.3219728748.2566822917.20462.18270.16312.14564.13004.11611.10367.08264.0658805252.041870333815%.86957.75614.657525717549718432333759432690284262471821494.1869116253.14133.12289.10686092930808107027.06110046200349302642.0199701510

Time Value of Money: It is a concept used to calculate the worth of money at different times. The…

Answered: Janelle Carter deposited $9,840 in the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Question Content Area

Time Value of Money Concept

The following situations involve the application of the time value of money concept. Use the full factor when calculating your results.

Use the appropriate present or future value table:

FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1

1. Janelle Carter deposited $9,840 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.

2. Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 10% compounded annually. On January 1, 2017, the deposit has accumulated to $13,120. How much money did Lee originally deposit on January1, 2010? Round to the nearest whole dollar.

TABLE 9-1 Future Value of $1
(N)
Periods
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
22
24
26
28
30
2%
3%
4%
1.37279
1.40024
1.42825 1.70243
1.45681
1.75351
1.48595
1.80611
1.54598
1.91610
1.60844
2.03279
1.67342
2.15659
1.74102
2.28793
1.81136
2.42726
5%
1.80094
1.87298 2.18287
1.94790
2.29202
2.02582
2.40662
2.10685
2.52695
2.19112
2.65330
2.36992
2.92526
2.56330
3.22510
2.77247
2.99870
3.24340
6%
7%
10%
1.02000
1.03000
1.04000
1.05000
1.06000
1.07000
1.10000
1.12000
1.04040
1.14490
1.21000 1.25440
1.06090 1.08160 1.10250 1.12360
1.09273 1.12486 1.15763
1.06121
1.22504
1.40493
1.08243
1.12551
1.16986 1.21551
1.19102
1.26248 1.31080
1.33823
1.46410 1.57352
1.10408
1.15927
1.46933
1.61051
1.76234
1.58687 1.77156 1.97382
1.94872
2.21068
2.14359 2.47596
1.42331
1.99900
2.35795
2.77308
1.21665 1.27628
1.40255
1.12616 1.19405 1.26532 1.34010 1.41852 1.50073
1.14869 1.22987 1.31593 1.40710 1.50363 1.60578 1.71382
1.17166
1.26677 1.36857 1.47746 1.59385 1.71819 1.85093
1.19509 1.30477
1.55133 1.68948 1.83846
1.21899 1.34392 1.48024 1.62889 1.79085 1.96715
1.24337 1.38423 1.53945 1.71034 1.89830 2.10485
1.79586
2.01220 2.25219
1.88565 2.13293
2.26090 2.57853
2.75903
2.15892
2.59374 3.10585
2.85312
3.47855
2.33164
2.51817 3.13843
1.26824
1.42576
1.60103
3.89598
1.29361
1.46853
1.66507
3.45227 4.36349
1.31948
1.51259
1.73168 1.97993
1.34587
1.55797
2.07893 2.39656
1.60471
2.54035
2.95216
1.65285
2.69277
3.15882
2.40985 2.71962
2.93719 3.79750 4.88711
3.17217 4.17725 5.47357
3.42594 4.59497 6.13039
3.70002 5.05447 6.86604
3.99602 5.55992 7.68997
4.31570 6.11591 8.61276
4.66096 6.72750 9.64629
5.43654 8.14027 12.10031
2.85434
3.37993
3.02560
3.61653
3.20714 3.86968
3.60354
4.43040
4.04893
5.07237
6.34118
9.84973 15.17863
4.54938
7.39635 11.91818 19.04007
5.11169
8.62711 14.42099 23.88387
5.74349
10.06266 17.44940
3.55567
3.92013
4.32194
8%
5.80735
6.64884
7.61226
12%
1.08000
1.16640
1.25971 1.33100
1.36049
15%
1.15000
1.32250
1.52088
1.74901
2.01136
2.31306
2.66002
3.05902
3.51788
4.04556
4.65239
5.35025
6.15279
7.07571
8.13706
9.35762
10.76126
12.37545
14.23177
16.36654
21.64475
28.62518
37.85680
50.06561
29.95992 66.21177

TABLE 9-2 Present Value of $1
(N)
Periods
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
22
24
26
28
30
2%
98039
96117
94232
92385
90573
.88797
.87056
.85349
83676
.82035
.80426
78849
.77303
.75788
74301
.72845
.71416
70016
.68643
.67297
.64684
.62172
59758
57437
55207
3%
97087
94260
91514
88849
.86261
.83748
.81309
78941
76642
74409
.72242
70138
.68095
.66112
.64186
.62317
.60502
58739
57029
55368
52189
49193
46369
43708
41199
4%
96154
92456
.88900
.85480
.82193
.79031
.75992
.73069
.70259
.67556
.64958
.62480
.60057
57748
55526
53391
51337
49363
47464
45639
42196
39012
36069
33348
30832
5%
95238
90703
86384
.82270
78353
.74622
.71068
.67684
.64461
.61391
58468
55684
53032
50507
48102
45811
43630
41552
39573
37689
34185
31007
28124
25509
23138
6%
94340
89000
.83962
.79209
.74726
.70496
.66506
.62741
59190
55839
52679
49697
46884
44230
41727
39365
37136
35034
33051
31180
27751
24698
21981
.19583
.17411
7%
.93458
.87344
.81630
.76290
.71299
.66634
.62275
.58201
.54393
.50835
47509
.44401
.41496
.38782
.36245
.33873
.31657
29586
.27651
25842
.22571
.19715
17220
.15040
.13137
8%
.92593
.85734
.79383
73503
.68058
.63017
.58349
.54027
50025
.46319
.42888
.39711
.36770
.34046
.31524
.29189
27027
.25025
.23171
21455
.18394
.15770
.13520
.11591
.09938
10%
.90909
.82645
.75131
.68301
.62092
.56447
51316
.46651
.42410
.38554
35049
.31863
.28966
26333
23939
.21763
.19784
.17986
.16351
.14864
.12285
.10153
.08391
.06934
.05731
12%
.89286
.79719
.71178
.63552
.56743
.50663
.45235
.40388
.36061
.32197
28748
.25668
22917
.20462
.18270
.16312
.14564
.13004
.11611
.10367
.08264
.06588
05252
.04187
03338
15%
.86957
.75614
.65752
57175
49718
43233
37594
32690
28426
24718
21494
.18691
16253
.14133
.12289
.10686
09293
08081
07027
.06110
04620
03493
02642
.01997
01510

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