Homework Answers
1. Future Value= Amount* Future value of $1 at 3%(6%/2 as interest is compounded semi- annually) for time period =6(3*2)(from Jan. 1, 2011 to Dec. 31, 2013)
Future value= $3,000*1.19405
=$3,582.15
2. Present Value= Amount* Present value of $1 at 6%( as interest is compounded annually) for time period =2(from Jan. 1, 2012 to Dec. 31, 2013)
=$6,000*0.89000
=$5,340
3.Future Value of annuity= Amount* Future value of annuity at 6%( as interest is compounded annually) for time period =3(from Jan. 1, 2011 to Dec. 31, 2013)
Future value= $2,000*3.18360
=$6,367.2
4. Present Value= Amount* Present value of annuity at 3%(6%/2 as interest is compounded semi- annually) for time period =4(2*2)(from Jan. 1, 2012 to Dec. 31, 2013)
=$300*3.71710
=$1,115.13
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Part C (4 points). Use the following time value of money tables to answer the following...
Periods 6% 1.06000 1.12360 1.19102 1.26248 1.33823 Table 1 : Future Value of 1 8% 9%...
Periods 6% 1.06000 1.12360 1.19102 1.26248 1.33823 Table 1 : Future Value of 1 8% 9% 1.08000 1.09000 1.16640 1.18810 1.25971 1.29503 1.36049 1.41158 1.46933 1.53862 10% 1.10000 1.21000 1.33100 1.46410 1.61051 12% 1.12000 1.25440 1.40493 1.57352 1.76234 Periods an 6% 0.94340 0.89000 0.83962 0.79209 0.74726 Table 2 : Present Value of 1 8% 9% 0.92593 0.91743 0.85734 0.84168 0.79383 0.77218 0.73503 0.70843 0.68058 0.64993 10% 0.90909 0.82645 0.75132 0.68301 0.62092 12% 0.89286 0.79719 0.71178 0.63552 0.56743 Periods いないか Table...
On January 1, 2020, Tiffany and Company issues 3 year bonds payable with a face value...
On January 1, 2020, Tiffany and Company issues 3 year bonds
payable with a face value $100,000, stated interest 10% payable at
12/31 each year. Market interest rate is 8%. What should be the
issuance price at 1/1/2020?
Please help with explanation and steps.
6% 1.06000 1.12360 1.19102 1.26248 1.33823 Table 1: Future Value of 1 8% 9% 1.08000 1.09000 1.16640 1.18810 1.25971 1.29503 1.36049 1.41158 1.46933 1.53862 10% 1.10000 1.21000 1.33100 1.46410 1.61051 12% 1.12000 1.25440 1.40493 1.57352 1.76234...
Use the following tables to calculate the present value of a $506,000 @ 5%, 5-year bond...
Use the following tables to calculate the present value of a $506,000 @ 5%, 5-year bond that pays $25,300 interest annually, if the market rate of interest is 10%. Round to the nearest dollar Present Value of $1 Present Value of Annuity of $1 6% 94340 Periods 5% 6% 7% 10% | Periods 5% 10% 95238 .94340 .93458.909091 90703 .89000 .87344 .826452 86384 .83962 .81630 751313 82270 .79209.76290 683014 78353 74726 .71299 .62092 74622 70496 .66634.56447 71068 .66506 .62275 .51316...
Ch. 6 Time Value of Money Concepts (2 marks) E6-6 Present value; annuities Using the appropriate...
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On December 31, 2019, Coronado Company finished consulting services and accepted in exchange a promissory note...
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nmen Use the following tables to calculate the present value of a $342,000-5%, 6-year bond that...
nmen Use the following tables to calculate the present value of a $342,000-5%, 6-year bond that pays $17,100 interest annually, if the market rate of interest is 69, Round to the nearest dollar. Present Value of $1 Present Value of Annuity of $1 Periods 5% 6% 7% 10%: Periods 5% 6% 7% 10% 90909 2 1.85941 1.83339 1.80802 1.73554 3 86384 83962 .81630 751313 2.72325 2.67301 2.62432 2.48685 3.54595 3.46511 3.38721 3.16987 5 4.32948 4.21236 4.10020 3.79079 6 .7 6...
The following situations require the application of the time value of money: Use the appropriate present...
The following situations require the application of the time value of money: Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 1. On January 1, 2017, $16,000 is deposited. Assuming an 8% interest rate, calculate the amount accumulated on January 1, 2022, if interest is compounded (a) annually, (b) semiannually, and (c) quarterly. Round your answers to the nearest dollar. Future Value a. Annual...
Prepare a Schedule of Note Discount Amortization for Marigold Company under the effective interest method. (Round answe...
Prepare a Schedule of Note Discount Amortization for Marigold Company under the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) Cash Interest (6%) Effective Interest (12%) Discount Amortized Present Value of Note Date 12/31/197 Unamortized Discount Balance 94393 560607 12/31/20 39300 78600 12/31/21 39300 78600 12/31/22 39300 78600 117900 235800 Click if you would like to Show Work for this question: Open Show Work Testbank Problem 163 a-b On December 31, 2019, Marigold Company finished consulting services...
Marin Leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company....
Marin Leasing Company signs an agreement on January 1, 2017, to
lease equipment to Cole Company. The following information relates
to this agreement.
1. The term of the non-cancelable lease is 6 years with no
renewal option. The equipment has an estimated economic life of 6
years.
2. The cost of the asset to the lessor is $230,000. The fair
value of the asset at January 1, 2017, is $230,000.
3. The asset will revert to the lessor at the...
On January 1, 2013, Marina Corp. issued 10-year bonds with a face value of $4,000,000 and...
On January 1, 2013, Marina Corp. issued 10-year bonds with a face value of $4,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% ........................................ .386 Present value of 1 for 10 periods at 12% ........................................ .322 Present value of 1 for 20 periods at 5% .......................................... .377 ...
Periods 6% 1.06000 1.12360 1.19102 1.26248 1.33823 Table 1 : Future Value of 1 8% 9% 1.08000 1.09000 1.16640 1.18810 1.25971 1.29503 1.36049 1.41158 1.46933 1.53862 10% 1.10000 1.21000 1.33100 1.46410 1.61051 12% 1.12000 1.25440 1.40493 1.57352 1.76234 Periods an 6% 0.94340 0.89000 0.83962 0.79209 0.74726 Table 2 : Present Value of 1 8% 9% 0.92593 0.91743 0.85734 0.84168 0.79383 0.77218 0.73503 0.70843 0.68058 0.64993 10% 0.90909 0.82645 0.75132 0.68301 0.62092 12% 0.89286 0.79719 0.71178 0.63552 0.56743 Periods いないか Table...
On January 1, 2020, Tiffany and Company issues 3 year bonds
payable with a face value $100,000, stated interest 10% payable at
12/31 each year. Market interest rate is 8%. What should be the
issuance price at 1/1/2020?
Please help with explanation and steps.
6% 1.06000 1.12360 1.19102 1.26248 1.33823 Table 1: Future Value of 1 8% 9% 1.08000 1.09000 1.16640 1.18810 1.25971 1.29503 1.36049 1.41158 1.46933 1.53862 10% 1.10000 1.21000 1.33100 1.46410 1.61051 12% 1.12000 1.25440 1.40493 1.57352 1.76234...
Use the following tables to calculate the present value of a $506,000 @ 5%, 5-year bond that pays $25,300 interest annually, if the market rate of interest is 10%. Round to the nearest dollar Present Value of $1 Present Value of Annuity of $1 6% 94340 Periods 5% 6% 7% 10% | Periods 5% 10% 95238 .94340 .93458.909091 90703 .89000 .87344 .826452 86384 .83962 .81630 751313 82270 .79209.76290 683014 78353 74726 .71299 .62092 74622 70496 .66634.56447 71068 .66506 .62275 .51316...
Ch. 6 Time Value of Money Concepts (2 marks) E6-6 Present value; annuities Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2013, of a five-period annual annuity of $5,000 under each of the following situations: 1. The first payment is received on December 31, 2014, and interest is compounded annually. 2. The first payment is received on December 31, 2013, and interest is compoundled annually. 3. The first...
nmen Use the following tables to calculate the present value of a $342,000-5%, 6-year bond that pays $17,100 interest annually, if the market rate of interest is 69, Round to the nearest dollar. Present Value of $1 Present Value of Annuity of $1 Periods 5% 6% 7% 10%: Periods 5% 6% 7% 10% 90909 2 1.85941 1.83339 1.80802 1.73554 3 86384 83962 .81630 751313 2.72325 2.67301 2.62432 2.48685 3.54595 3.46511 3.38721 3.16987 5 4.32948 4.21236 4.10020 3.79079 6 .7 6...
Prepare a Schedule of Note Discount Amortization for Marigold Company under the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) Cash Interest (6%) Effective Interest (12%) Discount Amortized Present Value of Note Date 12/31/197 Unamortized Discount Balance 94393 560607 12/31/20 39300 78600 12/31/21 39300 78600 12/31/22 39300 78600 117900 235800 Click if you would like to Show Work for this question: Open Show Work Testbank Problem 163 a-b On December 31, 2019, Marigold Company finished consulting services...
Marin Leasing Company signs an agreement on January 1, 2017, to
lease equipment to Cole Company. The following information relates
to this agreement.
1. The term of the non-cancelable lease is 6 years with no
renewal option. The equipment has an estimated economic life of 6
years.
2. The cost of the asset to the lessor is $230,000. The fair
value of the asset at January 1, 2017, is $230,000.
3. The asset will revert to the lessor at the...
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