Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter B, Problem 16E
Summary Introduction
Concept Introduction:
Future value is the value of present money after a period of time. Future value of present money is calculated using the interest rate and period. The present value of a sum is multiplied with the future value factor to get the future value.
To calculate: the future value of the investment.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Jasdeep plans to deposit $150 at the beginning of each month for 20 years.
If the account earns 7.2% compounded monthly for the first 12 years and 6%
compounded monthly thereafter, how much will be in her account at the end of the
20 years?
Your Answer:
Answer
Kelly Malone plans to have $55 withheld from her monthly paycheck and deposited in a savings account that earns 12% annually,
compounded monthly. If Malone continues with her plan for two and one-half years, how much will be accumulated in the account on
the date of the last deposit? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round
your final answer to 2 decimal places. Round "Table Factor" to 4 decimal places.)
Periodic Cash Flow
Table Values are Based on:
=
Table Factor
Total Accumulation
Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity?
Chapter B Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Kelly Malone plans to have $50 withheld from her monthly paycheck and deposited in a savings account that earns 12% annually, compounded monthly. If Malone continues with her plan for two and one-half years, how much will be accumulated in the account on the date of the last deposit?arrow_forwardAmy has an account that earns interest at a 10% annual effective rate of interest. She plans to make a level deposit at the beginning of each of the next 18 years so that her balance at the end of the 18 years will be $24000. What is the value of the required level deposit?arrow_forwardTo help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 4.8% interest, compounded monthly. Payments will be made at the end of each month. How much money does she need to pay into the annuity each month for the annuity to have a total value of $97,000 after 18 years?arrow_forward
- Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of $65,000, what recommendation would you make to Aunt Tillie?arrow_forwardManuel plans to set aside money for his young daughter’s college tuition. He will deposit money in an ordinary annuity that earns 5.4% interest, compounded monthly. Deposits will be made at the end of each month. How much money does he need to deposit into the annuity each month for the annuity to have a total value of $72,000 after 16 years?arrow_forwardAylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity? (Show solution)arrow_forward
- Almirah wants to have P50,000 at the end of 4 years for her graduation expenses and blow-out party. She plans to deposit a certain amount, at the end of each month to achieve this goal. If her deposit pays 8% compounded monthly, what should be her monthly deposit?arrow_forwardKelly Malone plans to have $58 withheld from her monthly paycheck and deposited in a savings account that earns 12% annually. compounded monthly. If Malone continues with her plan for one and one-half years, how much will be accumulated in the account on the date of the last deposit? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provlded. Round your final answer to 2 declmal places. Round "Table Factor" to 4 declmal places.) Periodic Cash Table Factor Total Accumulation Flow Table Values are Based on: 3Darrow_forwardRobin wishes to accumulate a sum of $450,000 in a retirement account by the time of her retirement in 30 years from now. If she wishes to do this through monthly payments into an account that earns interest at the rate of 10% / year compounded monthly, what should be the size of each payment?arrow_forward
- Sara decides to set up a retirement fund by depositing $24 at the end of each day for 13 years. How much will she have then, if the interest rate is 6.48% compounded weekly and her account starts with $13487 already deposited?arrow_forwardManuel plans to set aside money for his young daughter’s college tuition. He will deposit money in an ordinary annuity that earns 5.4% interest, compounded quarterly. Deposits will be made at the end of each quarter. How much money does he need to deposit into the annuity each quarter for the annuity to have a total value of $72,000 after 16 years?arrow_forwardManuel is preparing for an income fund for his retirement. He wants to receive P 15 500 at the beginning of each month for the next 25 years. The income fund pays 10.5% per year compounded monthly. How much must Manuel deposit now to pay for the annuity?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT