Use future value and present value calculations (an online calculator, app, financial calculator, or spreadsheet software) to determine the following: Use Exhibit 1-A, Exhibit 1-B and Exhibit 1-C. a. The future value of a $710 savings deposit after nine years at an annual interest rate of 8 percent. Note: Round FV factor to 3 decimal places and final answer to nearest whole dollar. b. The future value of saving $3,200 a year for three years at an annual interest rate of 7 percent. Note: Round discount factor to 3 decimal places and final answer to nearest whole dollar. c. The present value of a $3,400 savings account that will earn 4 percent interest for six years. Note: Round PV factor to 3 decimal places and final answer to nearest whole dollar. a. Future value b. Future value c. Present value

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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Use future value and present value calculations (an online calculator, app, financial calculator, or spreadsheet software) to determine
the following: Use Exhibit 1-A, Exhibit 1-B and Exhibit 1-C.
a. The future value of a $710 savings deposit after nine years at an annual interest rate of 8 percent.
Note: Round FV factor to 3 decimal places and final answer to nearest whole dollar.
b. The future value of saving $3,200 a year for three years at an annual interest rate of 7 percent.
Note: Round discount factor to 3 decimal places and final answer to nearest whole dollar.
c. The present value of a $3,400 savings account that will earn 4 percent interest for six years.
Note: Round PV factor to 3 decimal places and final answer to nearest whole dollar.
a. Future value
b. Future value
c. Present value
Transcribed Image Text:Use future value and present value calculations (an online calculator, app, financial calculator, or spreadsheet software) to determine the following: Use Exhibit 1-A, Exhibit 1-B and Exhibit 1-C. a. The future value of a $710 savings deposit after nine years at an annual interest rate of 8 percent. Note: Round FV factor to 3 decimal places and final answer to nearest whole dollar. b. The future value of saving $3,200 a year for three years at an annual interest rate of 7 percent. Note: Round discount factor to 3 decimal places and final answer to nearest whole dollar. c. The present value of a $3,400 savings account that will earn 4 percent interest for six years. Note: Round PV factor to 3 decimal places and final answer to nearest whole dollar. a. Future value b. Future value c. Present value
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