Otto Co. borrows money on April 30, 2016, by promising to make four payments of $19,000 each on November 1, 2016; May 1, 2017; November 1, 2017; and May 1, 2018. (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.)
1. How much money is Otto able to borrow if the interest rate is 6%, compounded semiannually?
2. How much money is Otto able to borrow if the interest rate is 10%, compounded semiannually?
3. How much money is Otto able to borrow if the interest rate is 12%, compounded semiannually?
a) Present Value = $19000 x PVA(3%,4) = 19000 x 3.7171 | $ 70,624.9 |
b) Present Value = $19000 x PVA(5%,4) = 19000 x 3.5460 | $ 67,374.00 |
c) Present Value = $19000 x PVA(6%,4) = 19000 x 3.4651 | $65836.900 |
Otto Co. borrows money on April 30, 2016, by promising to make four payments of $19,000...
Otto Co. borrows money on April 30, 2016, by promising to make four payments of $18,000 each on November 1, 2016; May 1, 2017; November 1, 2017; and May 1, 2018. (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.) 1. How much money is Otto able to borrow if the interest rate is 4%, compounded semiannually? Periodic Cash Flow Table Factor...
Otto Co. borrows money on April 30, 2019, by promising to make four payments of $18,000 each on November 1, 2019; May 1, 2020; November 1, 2020; and May 1, 2021. (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.) 1. How much money is Otto able to borrow if the interest rate is 2%, compounded semiannually? 2. How much money is...
TVM Assignment 0 • Otto Co, borrows money on April 30, 2019, by promising to make four payments of $19,000 each on November 1, 2019, May 1, 2020, November 1, 2020; and May 1, 2021 PV of S1, FV S1, PVA of S1, and FVA of 50 (Use appropriate factor(s) from the tables provided Round "Table Factor" to 4 decimal places.) 1. How much money is Otto able to borrow if the interest rate is 4%, compounded semiannually! 2. How...
Exercise B-11 Present value with semiannual Compounding LO C1, P3 Otto Co. borrows money on April 30, 2016, by promising to make four payments of $26,000 each on November 1, 2016, May 1, 2017; November 1, 2017; and May 1, 2018. (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.) 1. How much money is Otto able to borrow if the interest...
Exercise B-11 Present value with semiannual Compounding LO C1, P3 Otto Co. borrows money on April 30, 2016, by promising to make four payments of $26,000 each on November 1, 2016, May 1, 2017; November 1, 2017; and May 1, 2018. (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.) 1. How much money is Otto able to borrow if the interest...
Determine the future value of $19,000 under each of the following sets of assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.): Annual Rate Period Invested i= n= Future Value Value 10% 1. 2. Interest Compounded Semiannually Quarterly Monthly 8 years 2 years 15 months 12% 36% $ $ $ 19,000 19,000...
Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Mike Derr Company expects to earn 6% per year on an investment that will pay $616,000 five years from now. (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 present value of this investment. Table Factor Present Value Future Value $ 616,000 On January 1, a company agrees to pay $20,000 in six years. If the annual interest rate is...
Mark Welsch deposits $7,500 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $7,500 plus earned interest must remain in the account 2 years before it can be withdrawn. How much money will be in the account at the end of 2 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.) Present Value Table Factor...
Mark Welsch deposits $6,500 in an account that earns interest at an annual rate of 4%, compounded quarterly. The $6,500 plus earned interest must remain in the account 5 years before it can be withdrawn. How much money will be in the account at the end of 5 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.) Present Value Table Factor...