Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar. (The annual interest rate for all problems is 6%.) n = 3; i = 6%n = 6; i = 3%Future value of 11.191021.19405Present value of 1.83962.83748Future value of an annuity3.183606.46841Present value of an annuity2.673015.41719Redlands Inc. will need $4,000 on December 31, 2022. The firm will deposit money into a savings account on January 1, 2020, so that it will grow to be $4,000. The account earns annual interest. The amount Redlands must deposit on January 1, 2020, is $

Time value of money is a concept to determine the present value of a sum which is to be paid or…

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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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Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar. (The annual interest rate for all problems is 6%.)

	n = 3; i = 6%	n = 6; i = 3%
Future value of 1	1.19102	1.19405
Present value of 1	.83962	.83748
Future value of an annuity	3.18360	6.46841
Present value of an annuity	2.67301	5.41719

Redlands Inc. will need $4,000 on December 31, 2022. The firm will deposit money into a savings account on January 1, 2020, so that it will grow to be $4,000. The account earns annual interest. The amount Redlands must deposit on January 1, 2020, is $

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