Using a present value table, your calculator, or a computer program present value function, answer the following questions: See Table 6-4 and Table 6-5 (Use the appropriate factor by clicking on the appropriate Table links.) Required: a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%? b. What is the present value of $40,000 to be paid at the end of 20 years, using an interest rate of 18%? c. How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 13 years, assuming that the account will earn 12% interest? d. How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of 10 years, assuming that the account will earn 12% interest? e. Assume that a machine was purchased for $53,700. Cash of $24,500 was paid, and a four-year, 8% note payable was signed for the balance. 1. Prepare the horizontal model and record the journal entry, to show the purchase of the machine as described. 2. How much is the equal annual payment of principal and interest due at the end of each year? 3. What is the total amount of interest expense that will be reported over the life of the note? 4. Prepare the horizontal model and record the journal entries, to show the equal annual payments of principal and interest due at the end of each year. Complete this question by entering your answers in the tabs below. Req A Req B Present Value Req C Req D Req Ela Req Elb Req E2 Req E3 Req E4a Req E4b What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%? (Round your answer to 2 decimal places. (e.g., 32.16))
Using a present value table, your calculator, or a computer program present value function, answer the following questions: See Table 6-4 and Table 6-5 (Use the appropriate factor by clicking on the appropriate Table links.) Required: a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%? b. What is the present value of $40,000 to be paid at the end of 20 years, using an interest rate of 18%? c. How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 13 years, assuming that the account will earn 12% interest? d. How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of 10 years, assuming that the account will earn 12% interest? e. Assume that a machine was purchased for $53,700. Cash of $24,500 was paid, and a four-year, 8% note payable was signed for the balance. 1. Prepare the horizontal model and record the journal entry, to show the purchase of the machine as described. 2. How much is the equal annual payment of principal and interest due at the end of each year? 3. What is the total amount of interest expense that will be reported over the life of the note? 4. Prepare the horizontal model and record the journal entries, to show the equal annual payments of principal and interest due at the end of each year. Complete this question by entering your answers in the tabs below. Req A Req B Present Value Req C Req D Req Ela Req Elb Req E2 Req E3 Req E4a Req E4b What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%? (Round your answer to 2 decimal places. (e.g., 32.16))
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
2
Transcribed Image Text:Using a present value table, your calculator, or a computer program present value function, answer the following questions:
See Table 6-4 and Table 6-5 (Use the appropriate factor by clicking on the appropriate Table links.)
Required:
a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate
of 6%?
b. What is the present value of $40,000 to be paid at the end of 20 years, using an interest rate of 18%?
c. How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of
13 years, assuming that the account will earn 12% interest?
d. How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of
10 years, assuming that the account will earn 12% interest?
e. Assume that a machine was purchased for $53,700. Cash of $24,500 was paid, and a four-year, 8% note payable was
signed for the balance.
1. Prepare the horizontal model and record the journal entry, to show the purchase of the machine as described.
2. How much is the equal annual payment of principal and interest due at the end of each year?
3. What is the total amount of interest expense that will be reported over the life of the note?
4. Prepare the horizontal model and record the journal entries, to show the equal annual payments of principal and
interest due at the end of each year.
Complete this question by entering your answers in the tabs below.
Req A
Req B
Present Value
Req C
Req D
Req Ela
Req Elb
Req E2
Req E3
Req E4a
Req E4b
What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of
6%? (Round your answer to 2 decimal places. (e.g., 32.16))
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