Find the future value of an ordinary annuity of $700 paid at the end of each year for 4 years, if interest isearned at a rate of 6%, compounded annual.The future value is $(Round to 2 decimal places.)

interest rate =6% Period =4 years Future value FACTOR =(1+r)n-1/r Future value FACTOR…

Answered: The future value is $ (Round to 2…

Business

Accounting

The future value is $ (Round to 2 decimal places.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 3. For each of the following, compute the future value (Do not round intermediate calculations and…

A: Future Value refers to the compounded value of a single cash flow received today or multiple cash…

Q: For each of the following, compute the present value: Note: Do not round intermediate calculations…

A: Present value is the equivalent value of money today of the future money that is going to received…

Q: Find the present and future value of an income stream of $6000 per year for a period of 10 years if…

A: Present value (PV), also referred to as present discounted value, signifies the current value of a…

Q: a. At 6.1 percent interest, how long does it take to double your money? (Do not round intermediate…

A: Let intial amount be $100 So, future value will be $200 Let time taken to double the amount be "t"…

Q: Use the continuous compound interest formula to find the indicated value. A = $7,500; r= 6.54%; t= 6…

A: Amount(A) = $7500 Rate(r) = 6.54% Time(t) = 6 years Principal = P Continous Compounded

Q: Use a calculator to evaluate the present value of an annuity formula P = m 1 − 1 + r n −nt…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Present Value Years Interest Rate Future Value £ 240 3 % £ 297 360 11 1,080 39,000 12 185,382 38,261…

Q: Use the present value table to complete: (Round the "PV factor" to 4 decimal places and final answer…

A: Given, Future amount = $11,000 Number of periods = 6 years*4 Number of periods = 24 Rate = 12%/4…

Q: Amount $70,000 a. Calculate P 1 + A = b. Calculate B= A c. Let R= B Time Rate 2% 30 years n r P ( ₁…

A: The time value of money concept is used to determine the amount of money that will be received in…

Q: Compute the number of years (t) if future value (FV) = $12,029, present value (FV) = $1,826, and…

A: Period required for the future value can be determined by using formula for future value or present…

Q: (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: For each of the following annuities, calculate the present value. Note: Do not round intermediate…

A: Annuity payment refers to the amount that is paid at every period including interest and principal…

Q: For each of the following, compute the present value. (Do not round intermedia calculations and…

A: Present value is the discounted value as of today of the given future cash flows. This is based on…

Q: For each of the following, compute the present value: (Do not round intermediate calculations and…

A: Present value refers to the current value of a future sum of money or cash flow, discounted back to…

Q: For each of the following, compute the future value: (Do not round intermediate calculations and…

A: We need to use future value formula below to solve the above problem.FV=PV * (1+i)nWhereFV =Future…

Q: For each of the following, compute the future value: (Do not round intermediate calculations and…

A: When we deposit a sum of money today it starts earning interest. Due to this it gets compounded.…

Q: What is the present value of a stream of 5 end-of-year annual cash receipts of $3,200 given a…

A: The present value of an annuity or PV of an annuity is the value of the payments or receipts to be…

Q: For each of the following, compute the present value. (Do not round intermediate calculations and…

A: We need to use present value formula below to solve above problem where PV =Present value FV…

Q: 3 Use the future value formula, S = P(1 + rt), to compute the future value of $2526.00 over three…

A: P = 2526 r = 9.75% p.a. t = 3/12 = 0.25

Q: For each of the following, compute the future value: Note: Do not round intermediate calculations…

A: Future value is the amount at which the current amount will grow over time at a compounded rate of…

Q: Rank the following from highest present value to lowest present value. Assume all else equal. v An…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: For each of the following annuities, calculate the future value. Note: Do not round intermediate…

A: Variables in the question: Future Value ($)Annual Payment ($)YearsInterest Rate 1790106%…

Q: Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in…

A: Present value (PV) may be a budgetary concept utilized to determine the current worth of future cash…

Q: Compute the number of years (t) if future value (FV) = $6,636, present value (FV) = $1,895, and…

A: Future Value(FV) and Present Value(PV) are two values for same amount where PV represent the worth…

Q: For each of the following, compute the present value: (Do not round intermediate calculations and…

A: We just have to substitute the values to the formula Present Value = Future Value/(1+r)t

Q: If $525$⁢525 is invested at 14%14%, how much money will be in the account after 3030 months? Round…

A: An amount is the total payments received after a period of time for which it is borrowed.

Q: Find the accumulated present value of an investment for which there is a perpetual continuous money…

A: Payment = p = $3300Interest rate = r = 8%

Q: Suppose you deposit $ 1296 today and your account will accumulate to $ 5637 in 9 years. What is the…

A: Maturity Amount, A = $ 5637Principal deposited, P = $ 1,296Time period, T = 9 years

Q: (b) What is the present value of $33,000 to be received at the end of each of 6 periods, discounted…

Q: ompute the number of years (t) if future value (FV) = $10174, present value (FV) = $1498, and…

A: Future value of the amount is the amount that being deposit today and amount of interest accumulated…

Q: For each of the following, compute the future value: Note: Do not round intermediate calculations…

A: Part a) Step 1: Given Value for Calculation Present Value = pv = $2400Time = t = 6 YearsInterest…

Q: From this partial advertisement: $86.83 per month for 60 months $3,700 used car cash price $50 down…

A: Car or any vehicle is purchased on loan and these loans are paid by equal monthly installments that…

Q: For each of the following, compute the present value: (Do not round inte calculations and round your…

A: The PV of an investment refers to its cumulative value after discounting the cash flows to the…

Question

Find the future value of an ordinary annuity of $700 paid at the end of each year for 4 years, if interest is
earned at a rate of 6%, compounded annual.
The future value is $
(Round to 2 decimal places.)

Expert Solution

Step 1

interest rate =6%

Period =4 years

Future value FACTOR =(1+r)ⁿ-1/r

Future value FACTOR =(1.06)⁴-1/0.06

Future value FACTOR =4.374

Future value =Future value FACTOR x annual payment

Future value =4.374 ×700

Future value =$3061.80

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

For each of the following, compute the present value: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value Years 11 3 15 20 Interest Rate 5% 10 % 13 % 12 % Future Value $ 18,628 42,817 803,382 660,816
Use this formula to identify each item listed below ??=250((1+0.042512)12×15−1)÷(0.042512)FV=250((1+0.042512)12×15−1)÷(0.042512) payment compounded Interest rate time
For each of the following, compute the future value: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value $ 2,350 10,053 105,305 243,382 Years Carne p 7 20 14 30 10 333 E MA Interest Rate 23232 HOS: ploping 201 18 % 10 % 11 % 3% Future Value
For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years 12 4 16 21 Interest Rate 4 % 9 12 11 Future Value $ 18,128 42,317 798,382 655,816
Use the present value table to complete: (Round the "PV factor" answer to 4 decimal places.) Future Amount Desired Length of Time Rate Compounded Table Periods Rate Used P.V. Factor P.V. Amount $12,000 12 yrs 12% semiannually _______%
Hh3.
For each of the following, compute the present value: (Do no calculations and round your answers to 2 decimal places, e.g., 32 Present Value Years 10 2 14 19 Interest Rate 6% 11 4.3 14 13 Future Value $ 18,728 42,917 804,382 661,816
(b) What is the present value of $30,700 to be received at the end of each of 5 periods, discounted at 10%? (Round answer to 2 decimal places, e.g. 25.25.)
If the annual interest rate is 8%, what is the daily interest rate that would be used as the "r" in the time value of money equation? Hint: the equation uses the decimal equivalent of the percent Enter your answer to four decimal places.
Use the compound interest formula A = P(1 + i)n to find the indicated values A = $6,000; i = 0.03; n = 24; P =?
Attempt History Current Attempt in Progress Wildhorse Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment: Cost Old Equipment Accumulated depreciation Remaining life Current salvage value Salvage value in 8 years Annual cash operating costs $80,240 $40,300 8 years $9,920 $0 $35,100 Cost New Equipment Estimated useful life Salvage value in 8 years Annual cash operating costs $38,000 8 years $4,800 $29,900 Depreciation is $10,030 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $4,800.
Find the future value FV of the given present value. (Round your answer to the nearest cent.) Present value of $12,410 at 5 7 8 % for 670 days