FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Classify the financial problem. Assume a 9% interest rate compounded annually. What annual deposit is necessary to give $10,000 in 6 years? A.future valueB.amortization C.sinking fundD.present valueE.ordinary annuity Answer the question. (Round your answer to the nearest cent.)arrow_forwardCalculate the future value in five years of $4,000 received today if your investments pay for the following interest rates. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) 6 percent compounded annually b. 8 percent compounded annually a. C. 10 percent compounded annually d. 10 percent compounded semiannually 10 percent compounded quarterly e. Future Valuearrow_forward1 Which formula property calculates the future value of monthly deposits of $800 left on 2 deposit for 10 years at an annual return of 8%? Assume an initial deposit of $20,000. Your formula must return a positive value. 4 Number of years 5 Payments per year 6 Monthly deposit 7 Annual return 8 Initial deposit 10 12 $800 8% $20,000 Multiple Choice =FV(B7/B5,B4 B5,B6,B8) =-FV(B7/85,84-85,B6,B8) -FV(B7.85,84-85,B6) =-FVB7.84-85.B6.B8)arrow_forward
- You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period? (Click here to see present value and future value tables) Amounts ofInvestment Rate Times Value at the Endof the Period $9,000 20% 16 years $fill in the blank 1 $13,000 15% 11 years $fill in the blank 2 $16,000 12% 6 years $fill in the blank 3 $35,000 10% 4 years $fill in the blank 4arrow_forwardWhat is the future value of an annuity due of $800 paid semi-annually for the next 7 years, with a yield of 5% p.a. compounded semi-annually? Select one: a. $13,215.16 b. $6,923.22 c. $11,200.00 d. $13,545.54arrow_forwardhe future value of an ordinary annuity with $200 annual deposits into an account paying 6% interest over the next 10 years will be a. $1,987.56 b. $2,636.16 c. $2,794.37 d. $2,120arrow_forward
- Which investment will give you the higher future value in 5 years? Investment 1: You deposit $100 every month into an investment savings account that has an interest rate of 2.5% compounded daily. Investment 2: You deposit $300 every three months into an investment savings account that has an interest rate of 2.6% compounded semi-annually.arrow_forwardCalculate the future value in six years of $8,000 received today if your investments pay for the following interest rates. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Future Value 5 percent compounded annually b. 7 percent compounded annually c. 9 percent compounded annually d. 9 percent compounded semiannually 9 percent compounded quarterly а. $ 6,268.21 е.arrow_forwardCompound Interest Table Complete the following schedule for investments a through f by indicating the relevant factor from the present value or future value table and the final present or future value amount. Investment Compounding a. Annuity b. Annuity Annually Semiannually Semiannually Annually c. Annuity d. Single Payment e. Single Payment Semiannually f. Single Payment Semiannually Factor Answer $ a. $ Annual Interest Rate Amount 5% $2,000 4% 1,000 6% 14,000 •Note: Round your answers to the nearest whole dollar. •Note: Do not use a negative sign (-) with your answers. b. 5% 9,000 6% 16,000 4% 9,600 $ C. Investment $ Period d. $ Payment at Beg. or End e. of Period 2 years End 3 years Beginning 4 years Beginning 6 years n/a 5 years n/a 4 years n/a $ f. Future Value or Present Value Future Present Future Present Future Presentarrow_forward
- Please answer ASAP for an upvote. Thank you. Interest Rate=5% compounded annuallyarrow_forwardd. How much do you have to invest today and every six months thereafter for the next 10 years if you want to accumulate a total of $400,000, 10 years from today in an investment paying 10% semiannually? Do not answer in image formatarrow_forwardConsider the following investment. (Round your answers to the nearest cent.) $5,200 at 7 3 4 % compounded quarterly for 8 1 2 years (a) Find the future value of the given amount.$ (b) Interpret the future value of the given amount. After 8 1 2 years, the investment is worth $ .arrow_forward
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