Managerial Accounting: Tools for Business Decision Making
Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
Question
Book Icon
Chapter A, Problem A.18BE
To determine

Present value: This is the amount of future value reduced or discounted at a rate of interest till particular current date.

Formula to compute present value:

Presentvalue} = {Future value × Present value factor of $1 at interest rate for time periods}

To calculate: The annual interest rate on CM’s investment

Blurred answer
Students have asked these similar questions
If Oriole Mooney invests $1,560.48 now and she will receive $12,000 at the end of 18 years, what annual rate of interest will Oriole earn on her investment? (Hint: Use Table 3.) (Round answer to O decimal places, e.g. 25%.) Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Annual rate of interest %
Sally enters into an investment that will guarantee her 5% year if she deposits $2045 each year for the next 10 years. She must make the first deposit one year from today. How much will she have when she makes her last payment 10 years from now? (Please use excel function = FV) to solve
12) What annual rate of return would Jia need to earn if she deposits $20,000 per year into an account beginning one year from today in order to have a total of $1,000,000 in 30 years?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:9781285595047
Author:Weil
Publisher:Cengage