Managerial Accounting
7th Edition
ISBN: 9781260247886
Author: Wild
Publisher: MCG
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Chapter B, Problem 6E
To determine
Present Value:
Present value of money means the present or current value of a future cash flow at a given rate of interest or return.
Future Value:
The future value is the value of present cash flow at specified time period and at specified
We have to determine the future amount to be received after 9 years.
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Catten, Incorporated, Invests $158,170 today earning 7% per year for six years. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use
appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.)
Compute the future value of the investment six years from now.
Present Value
Table Factor
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What are the future value and the interest earned if $3800 is invested for 7 years at 8% compounded quarterly? (Round your answers to the nearest cent.)
Give typing answer with explanation and conclusion
Catten, Inc., invests $163,170 today earning 7% per year for nine years. Use Table B.2 to compute the future value of the investment nine years from now. (Round the amount to the nearest dollar.)
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