Videos
Identify the interest rate column and the number of period’s row that will be used for the following rates.
Explanation of Solution
Future value:
The future value is value of present amount compounded at an interest rate until a particular future date
1.
When annual rate is 8% and compounded quarterly. The interest rate column will be 2% and the number of periods will be 8 because, when future value is compounded quarterly, the number of years will be increased by four times and the rate of interest will decrease by quarter of the given interest rate.
2.
When annual rate is 12% and compounded annually. The interest rate column will be 12% and the number of periods will be 8.
3.
When annual rate is 6% and compounded semiannually. The interest rate column will be 3% and the number of periods will be 4 because when future value is compounded semiannually, the number of years will be doubled and the rate of interest will decrease by half of the given interest rate.
4.
When annual rate is 12% and compounded monthly. The interest rate column will be 1% and the number of periods will be 24, because the interest rate for each month will be 1% and number of period will be 24 because future value is estimated for 2 years.
Want to see more full solutions like this?
Chapter B Solutions
Principles of Financial Accounting.
- Calculate cost of good sold general accounting question quick answerarrow_forwardPlease provide the solution to this general accounting question with accurate financial calculations.arrow_forwardPlease explain the solution to this financial accounting problem with accurate explanations.arrow_forward
- How can I solve this financial accounting problem using the appropriate financial process?arrow_forwardOrion Co. wants to earn a net income of $250,000. The company has fixed costs of $800,000, and its variable costs are 70% of sales. What amount of sales is required to achieve the desired net income?arrow_forwardI need help finding the accurate solution to this financial accounting problem with valid methods.arrow_forward
- Can you help me solve this general accounting problem using the correct accounting process?arrow_forwardCan you help me solve this financial accounting question using the correct financial procedures?arrow_forwardI need help with this financial accounting question using standard accounting techniques.arrow_forward
- Please help me solve this general accounting problem with the correct financial process.arrow_forwardI need help finding the accurate solution to this general accounting problem with valid methods.arrow_forwardCan you help me solve this general accounting problem using the correct accounting process?arrow_forward
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:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education