Your invest $8,195 for 6 years at a 7 percent interest rate. what element would to determine the future worth of your deposit using the Future value of one Table (Time value of Money Table)? Four decimal places should be used. It's too big to submit you use the table.

Your invest $8,195 for 6 years at a 7 percent interest rate. what element would to determine the future worth of your deposit using the Future value of one Table (Time value of Money Table)? Four decimal places should be used. It's too big to submit you use the table.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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One can solve for payments (PMT), periods (N), and interest rates (1) for annuities. The easiest way to solve for these variables is with a financial calculator or a spreadsheet. Quantitative Problem 1: You plan to deposit $2,100 per year for 4 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today. a. What amount will be in your account at the end of 4 years? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. Assume that your deposits will begin today. What amount will be in your account after 4 years? Do not round intermediate calculations. Round your answer to the nearest cent. $ Quantitative Problem 2: You and your wife are making plans for retirement. You plan on living 25 years after you retire and would like to have $95,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 12% annually. a.…
A3ai Use the present value and future value formulas to solve the following problems. Confirm your answers with your financial calculator. Show both methods of calculation in your answers. When performing your calculations, keep as many decimal places as you can for intermediate answers, but round your final answers to two decimal places. (10 marks total) If you invest $1000 today at 3% annual interest rate, how much money would you have in one year’s time?
(Use Calculator or Formula Approach) Suppose you had a relative deposit $10 at 5.5% interest 200 years ago. How much would the investment be worth today?
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Use the present value and future value tables to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? $fill in the blank 1 B. If you place $6,100 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? $fill in the blank 2 C. You invest $7,000 per year for 9 years at 12% interest, how much will you have at the end of 9 years? $fill in the blank 3 D. You win the lottery and can either receive $760,000 as a lump sum or $40,000 per year for 19 years. Assuming you can earn 8% interest, which do you recommend and why?
You deposit $100 today, $200 one year from now, and $300 three years from now. How much money will you have at the end of year three if there are different annual interest rates per period according to the following diagram?
4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)
To the closest year, how long will it take $200 to double if it is deposited and earns the fol-lowing rates? [Notes: (1) See the Hint for Problem 4-9. (2) This problem cannot be solved exactly with some financial calculators. For example, if you enter PV 5 2200, PMT 5 0, FV 5 400, and I 5 7 in an HP-12C and then press the N key, you will get 11 years for part a. The correct answer is 10.2448 years, which rounds to 10, but the calculator rounds up. However, the HP10BII gives the exact answer.] a. 7% b. 10% c. 18% d. 100%
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