Managerial Accounting
5th Edition
ISBN: 9781259176494
Author: John J Wild, Ken Shaw Accounting Professor
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter B, Problem 7E
To determine
Present Value:
Present value of money means the present or current value of a future
Future Value:
The future value is the value of present cash flow at specified time period and at specified
We have to determine the rate of return that will be earned.
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ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula.
A. Suppose you invest
$ 11,400 today. What is the future value of the investment in
29 years, if interest at
7% is compounded annually?
B
B. Suppose you invest
$ 11,400 today. What is the future value of the investment in
29 years, if interest at
7% is compounded quarterly?
4
5
6
27
28
29
C. Suppose you invest
St
$
570 monthly. What is the future value of the investment in
29 years, if interest at
5%
is compounded monthly?
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