The present value of $66,000 to be received in two years, at 12% compounded annually, isneeded.Present Value of $1 at Compound InterestPeriods5%6%7%10%12%10.952380.943400.934580.909090.8928620.907030.890000.873440.826450.7971930.863840.839620.816300.751320.7117840.822700.792090.762900.683010.6355250.783530.747260.71299 0.620920.5674360.746220.704960.666340.564470.5066370.710680.665060.622750.513160.4523580.676840.627410.582010.46651 0.4038890.644610.591900.543930.424100.36061100.558400.385540.613910.508350.32197Oa. $54,546Ob. $58,740Oc. $52,615Od. $57,647A(rounded to nearest dollar). Use the following table, if

We will use the concept of time value of money here. As per the concept of time value of money the…

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% 0.89286 1 0.95238 0.94340 0.93458 0.90909 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 (rounded to nearest dollar). Use the following table, if

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% 0.89286 1 0.95238 0.94340 0.93458 0.90909 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 (rounded to nearest dollar). Use the following table, if

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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Similar questions

What is the present value of an annual payment of $9,500 discounted back 8 years at an annual rate of return of 3%?
What's the present value of $12,000 discounted 5 years if the appropriate interest rate is 4.5%, compounded semiannually? $7,205 $9,606 $9,702 $9,030 $10,736
Given below are the future value factors for 1 at 11% for one to five periods. Interest is compounded annually at 11%. Periods Future Value of 1 at 11% 1. 1.110 2. 1.232 1.368 1.518 5 1.685 What amount should be deposited in a bank account today to grow to $27400 three years from today? $27400 x 1.368 x 3 $27400 + 1.368 $27400 + 1.110 x 3 $27400 x 1.368 3. 4.
The present value of $41,000 to be received in two years, at 12% compounded annually, is _____ (rounded to nearest dollar). Use the following table, if 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 0.61391 0.55840 0.50835 0.38554 0.32197 a.$36,490 b.$32,685 c.$35,811 d.$33,884
2. Calculate the present value of an annuity-due of $200 over 8 years given that the spot rates of interest are 3% for investment horizons of 1 to 4 years, and 5% for investment horizons of 5 to 8 years.
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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 6 7 8 9 10 5% 0.95238 0.90703 0.82270 0.78353 0.74622 0.89000 0.87344 0.86384 0.83962 0.81630 0.79209 0.76290 0.74726 0.71068 0.67684 0.64461 0.61391 a. $40,000 Ob. $48,112 Oc. $8,112 Od. $31,888 6% 0.94340 7% 0.93458 0.70496 0.71299 10% 0.90909 0.82645 0.75132 0.68301 0.62092 0.66634 0.56447 0.66506 0.62275 0.51316 0.62741 0.58201 0.46651 0.59190 0.54393 0.55840 0.50835 0.38554 0.42410 12% 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 0.32197 (rounded to nearest dollar). Use the following table, if needed.
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