PART 1 COMPOUND INTEREST a. In order to accumulate 20,000 on January 1, 2016 how much must be invested on January 1, 2011 at 6% compounded annually? b. What is the present worth of 200,00 payments at the end of the 14th and 15th year? The annual interest rate is 7%. c. If money is invested at 5 ½% compounded quarterly, find the present value of 20,500 due at the end of 3 years and 9 months?

PART 1 COMPOUND INTEREST a. In order to accumulate 20,000 on January 1, 2016 how much must be invested on January 1, 2011 at 6% compounded annually? b. What is the present worth of 200,00 payments at the end of the 14th and 15th year? The annual interest rate is 7%. c. If money is invested at 5 ½% compounded quarterly, find the present value of 20,500 due at the end of 3 years and 9 months?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.15E

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