Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
expand_more
expand_more
format_list_bulleted
Question
Chapter AG, Problem G.5BE
To determine
Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:
Future value of an annuity refers to an amount received or paid equally for a specified number of periods with equal intervals for the investment made.
To Compute: The future value of a single amount and of an annuity amount (if the interest compounded annually).
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Andrew and Emma Garfield invested $7,700 in a savings account paying 8% annual interest when their daughter, Angela, was born. They also deposited $1,400 on each of her birthdays until she was 15 (including her 15th birthday).How much was in the savings account on her 15th birthday (after the last deposit)?
Matthew and Kimberly Garfield invested $7,300 in a savings account paying 5% annual interest when their daughter, Debra, was born.
They also deposited $2,000 on each of her birthdays until she was 16 (including her 16th birthday).
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
How much was in the savings account on her 16th birthday (after the last deposit)? (Round answer to 2 decimal places, eg. 25.25.)
Amount on 16th birthday $
Michael and Barbara Garfield invested $5,300 in a savings account paying 5% annual interest when their daughter,
Elizabeth, was born. They also deposited $1,600 on each of her birthdays until she was 14 (including her 14th birthday).
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
How much was in the savings account on her 14th birthday (after the last deposit)? (Round answer to 2 decimal places.
e.g. 25.25.)
Amount on 14th birthday
$
Chapter AG Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
Ch. AG - Prob. G.1BECh. AG - Prob. G.2BECh. AG - Prob. G.3BECh. AG - Prob. G.4BECh. AG - Prob. G.5BECh. AG - Prob. G.6BECh. AG - Prob. G.7BECh. AG - Prob. G.8BECh. AG - Prob. G.9BECh. AG - Prob. G.10BE
Ch. AG - Prob. G.11BECh. AG - Prob. G.12BECh. AG - Prob. G.13BECh. AG - Prob. G.14BECh. AG - Prob. G.15BECh. AG - Prob. G.16BECh. AG - Prob. G.17BECh. AG - Prob. G.18BECh. AG - Prob. G.19BECh. AG - Prob. G.20BECh. AG - Prob. G.21BECh. AG - Prob. G.22BECh. AG - Prob. G.23BECh. AG - Prob. G.24BECh. AG - Prob. G.25BECh. AG - Prob. G.26BECh. AG - Prob. G.27BECh. AG - Prob. G.28BE
Knowledge Booster
Similar questions
- Munabhaiarrow_forwardMelinda opened a savings account for her daughter on the day she was born, depositing $1,000: Each year on her birthday she deposits another $1,000 making the last deposit on her 21st birthday. The account pays 9.5% interest compounded annually. Find the total amount accumulated in the account at the end of the day on the daughters 21st birthday. (answer in whole number)arrow_forwardJames and Mary Garfield invested $5,000 in a savings account paying 4% annual interest when their daughter, Patricia, was born. They also deposited $1,000 on each of her birthdays until she was 14 (including her 14th birthday). Click here to view the factor table. How much was in the savings account on her 14th birthday (after the last deposit)? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 25.25.) Amount on 14th birthday $arrow_forward
- Domesticarrow_forwardAfter receiving an inheritance of $50,000 on her 21st birthday, Katlyn deposited the inheritance in a savings account with an effective annual interest rate of 3%. She decided to make regular deposits, beginning with $1000 on her 22nd birthday and increasing by $200 each year (i.e., $1200 on her 23rd birthday, $1400 on her 24th birthday, etc.). What was the future worth of Katlyn’s deposits after her deposit on her 66th birthday?arrow_forwardGilberto opened a savings account for his daughter and deposited $800 on the day she was born. Each year on her birthday, he deposited another $800. If the account pays 10.5% interest, compounded annually, how much is in the account at the end of the day on her 14th birthday? At the end of the day on her 14th birthday, the amount in the account is $. (Simplify your answer. Type an integer or a decimal. Round to the nearest cent if needed.)arrow_forward
- A man deposited $10,000 in a savings account when his son was born. The nominal interest rate was 8% per year, compounded continuously. On the son’s 18th birthday, the accumulated sum is withdrawn from the account. How much will this accumulated amount be?arrow_forwardPlease help me. Thankyou.arrow_forwardOn a boy's seventh birthday, his parents deposited 5,000 in his name in a savings bank paying 2% every three months. Find the value of his savings when he reaches age 21 (Accumulation Factor Method)arrow_forward
- A mother earned $18750.00 from royalties on her cookbook. She set aside 20% of this for a down payment on a new home. The balance will be used for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) that earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $900.00, how much money was invested at each rate? How much money was invested in the CD account? (Round to the nearest cent.) GILBarrow_forwardAnn’s grandmother put some money in an account for her on the day she was born. She is now 18 years old and is allowed to withdraw the money for the first time. The account currently has Ksh400,000 in it and pays an 8% per annum interest rate.i. Calculate how much money would be in the account if she left the money there until her 70th birthday.arrow_forwardAnn's grandmother put some money in an account for her on the day she was born. She is now 18 years old and is allowed to withdraw the money for the first time. The account currently has Ksh400,000 in it and pays an 8% per annum interest rate. i. Calculate how much money would be in the account if she left the money there until her 70th birthday.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education