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Janelle Carter deposited $9,840 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.

Janelle Carter deposited $9,840 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Time Value of Money Concept

The following situations involve the application of the time value of money concept. Use the full factor when calculating your results.

Use the appropriate present or future value table:

FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1

1.  Janelle Carter deposited $9,840 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.

2. Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 10% compounded annually. On January 1, 2017, the deposit has accumulated to $13,120. How much money did Lee originally deposit on January1, 2010? Round to the nearest whole dollar.

TABLE 9-1 Future Value of $1 (N) Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 22 24 26 28 30 2% 3% 4% 1.37279 1.40024 1.42825 1.70243 1.45681 1.75351 1.48595 1.80611 1.54598 1.91610 1.60844 2.03279 1.67342 2.15659 1.74102 2.28793 1.81136 2.42726 5% 1.80094 1.87298 2.18287 1.94790 2.29202 2.02582 2.40662 2.10685 2.52695 2.19112 2.65330 2.36992 2.92526 2.56330 3.22510 2.77247 2.99870 3.24340 6% 7% 10% 1.02000 1.03000 1.04000 1.05000 1.06000 1.07000 1.10000 1.12000 1.04040 1.14490 1.21000 1.25440 1.06090 1.08160 1.10250 1.12360 1.09273 1.12486 1.15763 1.06121 1.22504 1.40493 1.08243 1.12551 1.16986 1.21551 1.19102 1.26248 1.31080 1.33823 1.46410 1.57352 1.10408 1.15927 1.46933 1.61051 1.76234 1.58687 1.77156 1.97382 1.94872 2.21068 2.14359 2.47596 1.42331 1.99900 2.35795 2.77308 1.21665 1.27628 1.40255 1.12616 1.19405 1.26532 1.34010 1.41852 1.50073 1.14869 1.22987 1.31593 1.40710 1.50363 1.60578 1.71382 1.17166 1.26677 1.36857 1.47746 1.59385 1.71819 1.85093 1.19509 1.30477 1.55133 1.68948 1.83846 1.21899 1.34392 1.48024 1.62889 1.79085 1.96715 1.24337 1.38423 1.53945 1.71034 1.89830 2.10485 1.79586 2.01220 2.25219 1.88565 2.13293 2.26090 2.57853 2.75903 2.15892 2.59374 3.10585 2.85312 3.47855 2.33164 2.51817 3.13843 1.26824 1.42576 1.60103 3.89598 1.29361 1.46853 1.66507 3.45227 4.36349 1.31948 1.51259 1.73168 1.97993 1.34587 1.55797 2.07893 2.39656 1.60471 2.54035 2.95216 1.65285 2.69277 3.15882 2.40985 2.71962 2.93719 3.79750 4.88711 3.17217 4.17725 5.47357 3.42594 4.59497 6.13039 3.70002 5.05447 6.86604 3.99602 5.55992 7.68997 4.31570 6.11591 8.61276 4.66096 6.72750 9.64629 5.43654 8.14027 12.10031 2.85434 3.37993 3.02560 3.61653 3.20714 3.86968 3.60354 4.43040 4.04893 5.07237 6.34118 9.84973 15.17863 4.54938 7.39635 11.91818 19.04007 5.11169 8.62711 14.42099 23.88387 5.74349 10.06266 17.44940 3.55567 3.92013 4.32194 8% 5.80735 6.64884 7.61226 12% 1.08000 1.16640 1.25971 1.33100 1.36049 15% 1.15000 1.32250 1.52088 1.74901 2.01136 2.31306 2.66002 3.05902 3.51788 4.04556 4.65239 5.35025 6.15279 7.07571 8.13706 9.35762 10.76126 12.37545 14.23177 16.36654 21.64475 28.62518 37.85680 50.06561 29.95992 66.21177
Transcribed Image Text:TABLE 9-1 Future Value of $1 (N) Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 22 24 26 28 30 2% 3% 4% 1.37279 1.40024 1.42825 1.70243 1.45681 1.75351 1.48595 1.80611 1.54598 1.91610 1.60844 2.03279 1.67342 2.15659 1.74102 2.28793 1.81136 2.42726 5% 1.80094 1.87298 2.18287 1.94790 2.29202 2.02582 2.40662 2.10685 2.52695 2.19112 2.65330 2.36992 2.92526 2.56330 3.22510 2.77247 2.99870 3.24340 6% 7% 10% 1.02000 1.03000 1.04000 1.05000 1.06000 1.07000 1.10000 1.12000 1.04040 1.14490 1.21000 1.25440 1.06090 1.08160 1.10250 1.12360 1.09273 1.12486 1.15763 1.06121 1.22504 1.40493 1.08243 1.12551 1.16986 1.21551 1.19102 1.26248 1.31080 1.33823 1.46410 1.57352 1.10408 1.15927 1.46933 1.61051 1.76234 1.58687 1.77156 1.97382 1.94872 2.21068 2.14359 2.47596 1.42331 1.99900 2.35795 2.77308 1.21665 1.27628 1.40255 1.12616 1.19405 1.26532 1.34010 1.41852 1.50073 1.14869 1.22987 1.31593 1.40710 1.50363 1.60578 1.71382 1.17166 1.26677 1.36857 1.47746 1.59385 1.71819 1.85093 1.19509 1.30477 1.55133 1.68948 1.83846 1.21899 1.34392 1.48024 1.62889 1.79085 1.96715 1.24337 1.38423 1.53945 1.71034 1.89830 2.10485 1.79586 2.01220 2.25219 1.88565 2.13293 2.26090 2.57853 2.75903 2.15892 2.59374 3.10585 2.85312 3.47855 2.33164 2.51817 3.13843 1.26824 1.42576 1.60103 3.89598 1.29361 1.46853 1.66507 3.45227 4.36349 1.31948 1.51259 1.73168 1.97993 1.34587 1.55797 2.07893 2.39656 1.60471 2.54035 2.95216 1.65285 2.69277 3.15882 2.40985 2.71962 2.93719 3.79750 4.88711 3.17217 4.17725 5.47357 3.42594 4.59497 6.13039 3.70002 5.05447 6.86604 3.99602 5.55992 7.68997 4.31570 6.11591 8.61276 4.66096 6.72750 9.64629 5.43654 8.14027 12.10031 2.85434 3.37993 3.02560 3.61653 3.20714 3.86968 3.60354 4.43040 4.04893 5.07237 6.34118 9.84973 15.17863 4.54938 7.39635 11.91818 19.04007 5.11169 8.62711 14.42099 23.88387 5.74349 10.06266 17.44940 3.55567 3.92013 4.32194 8% 5.80735 6.64884 7.61226 12% 1.08000 1.16640 1.25971 1.33100 1.36049 15% 1.15000 1.32250 1.52088 1.74901 2.01136 2.31306 2.66002 3.05902 3.51788 4.04556 4.65239 5.35025 6.15279 7.07571 8.13706 9.35762 10.76126 12.37545 14.23177 16.36654 21.64475 28.62518 37.85680 50.06561 29.95992 66.21177
TABLE 9-2 Present Value of $1 (N) Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 22 24 26 28 30 2% 98039 96117 94232 92385 90573 .88797 .87056 .85349 83676 .82035 .80426 78849 .77303 .75788 74301 .72845 .71416 70016 .68643 .67297 .64684 .62172 59758 57437 55207 3% 97087 94260 91514 88849 .86261 .83748 .81309 78941 76642 74409 .72242 70138 .68095 .66112 .64186 .62317 .60502 58739 57029 55368 52189 49193 46369 43708 41199 4% 96154 92456 .88900 .85480 .82193 .79031 .75992 .73069 .70259 .67556 .64958 .62480 .60057 57748 55526 53391 51337 49363 47464 45639 42196 39012 36069 33348 30832 5% 95238 90703 86384 .82270 78353 .74622 .71068 .67684 .64461 .61391 58468 55684 53032 50507 48102 45811 43630 41552 39573 37689 34185 31007 28124 25509 23138 6% 94340 89000 .83962 .79209 .74726 .70496 .66506 .62741 59190 55839 52679 49697 46884 44230 41727 39365 37136 35034 33051 31180 27751 24698 21981 .19583 .17411 7% .93458 .87344 .81630 .76290 .71299 .66634 .62275 .58201 .54393 .50835 47509 .44401 .41496 .38782 .36245 .33873 .31657 29586 .27651 25842 .22571 .19715 17220 .15040 .13137 8% .92593 .85734 .79383 73503 .68058 .63017 .58349 .54027 50025 .46319 .42888 .39711 .36770 .34046 .31524 .29189 27027 .25025 .23171 21455 .18394 .15770 .13520 .11591 .09938 10% .90909 .82645 .75131 .68301 .62092 .56447 51316 .46651 .42410 .38554 35049 .31863 .28966 26333 23939 .21763 .19784 .17986 .16351 .14864 .12285 .10153 .08391 .06934 .05731 12% .89286 .79719 .71178 .63552 .56743 .50663 .45235 .40388 .36061 .32197 28748 .25668 22917 .20462 .18270 .16312 .14564 .13004 .11611 .10367 .08264 .06588 05252 .04187 03338 15% .86957 .75614 .65752 57175 49718 43233 37594 32690 28426 24718 21494 .18691 16253 .14133 .12289 .10686 09293 08081 07027 .06110 04620 03493 02642 .01997 01510
Transcribed Image Text:TABLE 9-2 Present Value of $1 (N) Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 22 24 26 28 30 2% 98039 96117 94232 92385 90573 .88797 .87056 .85349 83676 .82035 .80426 78849 .77303 .75788 74301 .72845 .71416 70016 .68643 .67297 .64684 .62172 59758 57437 55207 3% 97087 94260 91514 88849 .86261 .83748 .81309 78941 76642 74409 .72242 70138 .68095 .66112 .64186 .62317 .60502 58739 57029 55368 52189 49193 46369 43708 41199 4% 96154 92456 .88900 .85480 .82193 .79031 .75992 .73069 .70259 .67556 .64958 .62480 .60057 57748 55526 53391 51337 49363 47464 45639 42196 39012 36069 33348 30832 5% 95238 90703 86384 .82270 78353 .74622 .71068 .67684 .64461 .61391 58468 55684 53032 50507 48102 45811 43630 41552 39573 37689 34185 31007 28124 25509 23138 6% 94340 89000 .83962 .79209 .74726 .70496 .66506 .62741 59190 55839 52679 49697 46884 44230 41727 39365 37136 35034 33051 31180 27751 24698 21981 .19583 .17411 7% .93458 .87344 .81630 .76290 .71299 .66634 .62275 .58201 .54393 .50835 47509 .44401 .41496 .38782 .36245 .33873 .31657 29586 .27651 25842 .22571 .19715 17220 .15040 .13137 8% .92593 .85734 .79383 73503 .68058 .63017 .58349 .54027 50025 .46319 .42888 .39711 .36770 .34046 .31524 .29189 27027 .25025 .23171 21455 .18394 .15770 .13520 .11591 .09938 10% .90909 .82645 .75131 .68301 .62092 .56447 51316 .46651 .42410 .38554 35049 .31863 .28966 26333 23939 .21763 .19784 .17986 .16351 .14864 .12285 .10153 .08391 .06934 .05731 12% .89286 .79719 .71178 .63552 .56743 .50663 .45235 .40388 .36061 .32197 28748 .25668 22917 .20462 .18270 .16312 .14564 .13004 .11611 .10367 .08264 .06588 05252 .04187 03338 15% .86957 .75614 .65752 57175 49718 43233 37594 32690 28426 24718 21494 .18691 16253 .14133 .12289 .10686 09293 08081 07027 .06110 04620 03493 02642 .01997 01510
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