The present value of $40,000 to be received in two years, at 12% compounded annually, isPresent Value of $1 at Compound InterestPeriods12346789105%0.952380.907030.822700.783530.746220.89000 0.873440.86384 0.83962 0.816300.79209 0.762900.747260.710680.676840.644610.61391a. $40,000Ob. $48,112Oc. $8,112Od. $31,8886%0.943407%0.934580.704960.7129910%0.909090.826450.751320.683010.620920.66634 0.564470.66506 0.62275 0.513160.62741 0.582010.466510.591900.543930.55840 0.50835 0.385540.4241012%0.892860.797190.711780.635520.567430.506630.452350.403880.360610.32197(rounded to nearest dollar). Use the following table, if needed.

According to the concept of present value the value of money decreases each year , thus the value of…

The present value of $40,000 to be received in two years, at 12% compounded annually, is Present Value of $1 at Compound Interest Periods 1 2 3 4 5 6 7 8 9 10 12% 0.95238 0.94340 0.93458 0.90909 0.89286 0.90703 0.89000 0.87344 0.82645 0.79719 0.86384 0.83962 0.81630 0.75132 0.71178 0.82270 0.79209 0.76290 0.68301 0.63552 0.78353 0.74726 0.71299 0.62092 0.56743 0.74622 0.70496 0.66634 0.56447 0.50663 0.66506 0.62275 0.51316 0.45235 0.67684 0.62741 0.58201 0.40388 0.64461 0.59190 0.54393 0.42410 0.36061 0.61391 0.55840 0.50835 0.38554 0.32197 5% 0.71068 a. $40,000 Ob. $48,112 OC. $8,112 d. $31,888 6% 7% 10% 0.46651 (rounded to nearest dollar). Use the following table, if needed.

The present value of $40,000 to be received in two years, at 12% compounded annually, is Present Value of $1 at Compound Interest Periods 1 2 3 4 5 6 7 8 9 10 12% 0.95238 0.94340 0.93458 0.90909 0.89286 0.90703 0.89000 0.87344 0.82645 0.79719 0.86384 0.83962 0.81630 0.75132 0.71178 0.82270 0.79209 0.76290 0.68301 0.63552 0.78353 0.74726 0.71299 0.62092 0.56743 0.74622 0.70496 0.66634 0.56447 0.50663 0.66506 0.62275 0.51316 0.45235 0.67684 0.62741 0.58201 0.40388 0.64461 0.59190 0.54393 0.42410 0.36061 0.61391 0.55840 0.50835 0.38554 0.32197 5% 0.71068 a. $40,000 Ob. $48,112 OC. $8,112 d. $31,888 6% 7% 10% 0.46651 (rounded to nearest dollar). Use the following table, if needed.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

An investment of S6,560 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 7 years? USe A = P (1+r/n)nt a59.289.00 b. S6,794.00 c. $11.245.00 d. $2.296.00
Using annual, semiannual, and quarterly compunding periods, (1) calculate the future value i f $10,000 is deposited intially at 8% annual interest for 8 years , and (2) determine the effective annual rate (EAR)
a) Find the amount to which $100 will grow at an interest rate of 16% compounded semiannually for 4 years (future value). b) Find the present value of $300 due in the future if interest rate is 16% nominal rate quarterly compounded for 4 years.
Find the lump sum depouted today that will yield the same total amount as payments of 513.000 ot the end of each year for 12 years, at an interest rate of 7% compounded annually. The lump sum is (Round to the rearest cen)
Find the compound interest if 1600 Rials is invested for 7 years at an annual rate of 5% compounded weekly. Select one: O 651.361 (Rials) O 2251.361 (Rials) 670.126 (Rials) O 2270.126 (Rials)
Principal of 2500 OMR is invested for 3 years at rate 6.5%. Find the future value if the interest is compounded annually. Select one: O a. 2662.5 OMR O b. 3019.874 OMR O. 4125 OMR O d. 30574.525 OMR O e. None of the above Next page ge ENG 0740
The present value of $66,000 to be received in two years, at 12% compounded annually, is needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 0.90703 0.89000 0.87344 0.82645 0.79719 3 0.86384 0.83962 0.81630 0.75132 0.71178 4 0.82270 0.79209 0.76290 0.68301 0.63552 5 0.78353 0.74726 0.71299 0.62092 0.56743 6 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.55840 0.38554 0.61391 0.50835 0.32197 Oa. $54,546 Ob. $58,740 Oc. $52,615 Od. $57,647 A (rounded to nearest dollar). Use the following table, if
7. An amount of 24,000php is borrowed for 15 years at a rate of 2%. Make an amortization schedule showing the monthly payment, the monthly interest on the outstanding balance, the portion of the payment contributing toward reducing the debt, and the outstanding balance.
Owe
What is the present value of $1,500 due in 14 years at a 5 percent interest rate
please solve (a), (b ), (c)
What is the present value of the following future payments: (a) $6,000 ten years from now at 9% compounded annually. (b) $7,500 three years from now at 7% compounded annually. (c) $13,000 fifteen years from now at 1.25% compounded annually.