Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter B, Problem 6E
To determine
Compute the future value of the investment nine years from now.
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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.)
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
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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
Chapter B Solutions
Principles of Financial Accounting.
Ch. B - Prob. 1QSCh. B - Prob. 2QSCh. B - Prob. 3QSCh. B - Prob. 4QSCh. B - Prob. 5QSCh. B - Beene Distributing is considering a project that...Ch. B - Prob. 7QSCh. B - Prob. 1ECh. B - Prob. 2ECh. B - Prob. 3E
Ch. B - Prob. 4ECh. B - Prob. 5ECh. B - Prob. 6ECh. B - Prob. 7ECh. B - Number of periods of an investment Keith Riggins...Ch. B - Prob. 9ECh. B - Prob. 10ECh. B - Prob. 11ECh. B - Prob. 12ECh. B - Prob. 13ECh. B - Prob. 14ECh. B - Prob. 15ECh. B - Future value of an annuity Kelly Malone plans to...Ch. B - Prob. 17ECh. B - Practical applications of the time value of money...Ch. B - Using present and future value tables For each of...
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- What would be the future value of $7,992 invested annually for nine years beginning one year from now if the annual interest rate is 10 percent? (Round answer to 2 decimal places, e.g., 1,220.25.) Future value . . $arrow_forwardFind the future value in five years of an investment of $115,000 made today that earns 7.00 percent for the following compounding periods: (Round your final answer to the nearest penny.) Value of investment after 5 years a. Quarterly $ b. Monthly $ c. Daily $ d. Continuous $arrow_forwardAssume today is January 1 and you plan to invest $4,000 today in an account earning interest of 6% compounded semi-annually. You would like to calculate the amount your investment will grow to three years from now.Question: What should be the correct "n" and "i" to use for factor table purposes in order to answer your question?arrow_forward
- Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.arrow_forwardWhat annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate of return %arrow_forwardRate of return-Annuity What is the rate of return on an investment of $11,733 if the investor will receive $2,300 each year for the next 14 years? The rate of return on the investment, r, is %. (Round to two decimal places.)arrow_forward
- Assume that $105.04 invested today will grow to $2,639.23 at the end of 38 quarters. Given this info, determine the effective annual interest rate being earned on this investment.arrow_forwardAn investment of $6000 is deposited into an account in which interest is compounded monthly. Complete the table by filling in the amounts to which the investment grows at the indicated times. (Round your answers to the nearest cent.) r = 6% Time (years) Amount 1 2 3 4 5 6arrow_forwardA company wants to deposit $500,000 per year in an investment which earns interest of10 percent per year compounded annually. Assume the first deposit is made at the end of the current year and additional deposits at the end of each following year. (a) To what sum will the investment grow at the time of the 10th deposit? (b) How much interest will be earned?arrow_forward
- The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your present value to the nearest cent. Compound Term of Nominal Interest New Table Present Amount Investment (years) Rate (%) Compounded Factor Value $34,000 38 7 annually 2$arrow_forwardAssume an investment of $100,000 is made today and is expected to earn a quoted interest rate of 9.20%. Compute the future value of the initial investment after 5 years (Column B), 25 years (Column C), and 45 years (Column D) at each compounding frequency in Column A (annual, semiannual, monthly, daily, and continuous). (A) (B) (C) (D) Frequency (m) FV (5 Years) FV (25 Years) FV (45 Years) 1 2 12 365 ∞arrow_forwardAssume that you invest $1000 for 15 years in an account that pays an interest rate of 7% per year with annual compounding. Calculate the proportion of the total value of the account that can be attributed to interest-on-interest, at the end of 15 years. * 38.06% 36.24% 25.70% 0% 100%arrow_forward
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