Determine the combined present value as of December 31, 2016, of the following four payments to be received at the end of each of the designated years, assuming an annual interest rate of 8%. Payment Year Received $5,000 2017 6,000 2018 8,000 2020 9,000 2022

Required information [The following information applies to the questions displayed below.] At the end of 2025, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $36,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • Assume that $12,000 of the $36,000 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. • By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,300 during the year and recorded those as Deferred Revenue. • Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $15,000. • For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year,…

Required information [The following information applies to the questions displayed below.] At the end of 2025, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $36,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • Assume that $12,000 of the $36,000 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. • By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,300 during the year and recorded those as Deferred Revenue. • Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $15,000. • For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year,…

Present Value of an Annuity Determine the present value of $110,000 to be received at the end of each of four years, using an interest rate of 5%, compounded annually, as follows: a.  By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. b.  By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar.

A debt of $3726.12 is due August 1, 2022. What is the value of the obligation on February 1, 2015, if money is worth 9% compounded monthly? The value of the obligation is $ (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Present Value of an Annuity Determine the present value of $310,000 to be received at the end of each of four years, using an interest rate of 6%, compounded annually, as follows: a.  By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year $fill in the blank 1 Second Year   fill in the blank 2 Third Year   fill in the blank 3 Fourth Year   fill in the blank 4 Total present value $fill in the blank 5 b.  By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar.$fill in the blank 6 c. Why is the present value of the four $310,000 cash receipts less than the $1,240,000 to be received in the future?The present value is less due to..........................over the 4 years.

Subject:

Waterway Industries will receive $26500 today (January 1, 2020), and also on each January 1st for the next five years (2021 – 2025). What is the present value of the six $26500 receipts, assuming a 8% interest rate?