5. An amount is desited for cight years at 96. If compounding occurs quarterly, then the table value is found at A)...
please answer clear and correct Dr. Azad If you invest $50,000 to earn 896 Interest, which of the following compounding approaches would return the lowest amount after one year? A) Daily. B) Monthly. C) Quarterly Annually. • 2. Which of the following tables would show the smallest value for an interest rate of 5% for six periods? A) Future value of 1 B) Present value of 1 C) Future value of an ordinary annuity of 1 D) Present value of...
5-14 FUTURE VALUE OF AN ANNUITY Find the future values of these ordinary annuities. Compounding occurs once a year. a. $500 per year for 8 years at 14% b. $250 per year for 4 years at 7% c. $700 per year for 4 years at 0% d. Rework parts a, b, and c assuming they are annuities due.
You are calculating the present value of $1,000 that you will receive five years from now. Which table will you use to obtain the present value factor to calculate the present value of that $1,000? You are calculating the present value of $1,000 that you will receive five years from now. Which table will you use to obtain the present value factor to calculate the present value of that $1,000? A. Present Value of Ordinary Annuity of $1 B. Future...
5) a) What is the present value of S40 earned 2-years from now if compounding was semi-annual and the interest rate is annually 3%? b) A "black box"just paid $20, which is expected to grow by 3% when the interest rate is 7% forever, what is the present value of this "black box"? c) What is the future value of an annuity due with a $15 cash flow, 4% annual interest with quarterly compounding three-years from now? d) If the...
Which of the following is not a subtotal on the multi-step income statement? O A. gross profit OB. income from continuing operations before tax OC. operating income OD. interest expense Hitchcock Enterprises sold a vacant plot of land for $20,000. The company had paid $4,000 for the land ten years ago. On the statement of cash flows, this transaction would be reported as a O A. financing cash inflow of $20,000 B. investing cash inflow of $16,000 O C. investing...
1. In a future value of 1 table: Annual Rate Number of Years Invested Compounded () Rate of Interest (b) Number of Periods a. 10% Annually b. 8% Quarterly 10% Semiannually 2. In a present value of an annuity of 1 table: Annual Rate Number of Years Invested Number of Rents Involved Frequency of Rents (a) Rate of Interest (6) Number of Periods 1096 26 Annually 12% 15 30 Semiannually 8% Quarterly LINK TO TEXT Question Attempts: 0 of 3...
7. Use the present value formula or the future value table to determine the rate of return for each of the specified investments. A. Assume an investment of$30,000 today is expected to mature in ten years with a value of $59,010. What is the annual rate of return (r) that will be earned on this investment? B. Assume a business is considering an investment of $20,000 that will grow to $36,000 in eight years. The business requires a 7 percent...
For the same future value, if compounding changes from quarterly to monthly, the monthly present value a. will increase b. will be indeterminate. c. will not change d. will decrease
Ronan Industries needed to buy a piece of equipment, so it was financed for five years with payments of $20,000 at the end of each year. The rate of interest was 8% with the future value of 1 for five periods at 8% was 1.46933. The present value of the ordinary annuity for these same five periods is 3.99271, and the future value of an ordinary annuity is 5.8666. The machine will cost Ronan Industries a total of A :...
a) What is the present value of $40 earned 2-years from now if compounding was semi-annual and the interest rate is annually 3%? b) A “black box” just paid $20, which is expected to grow by 3% when the interest rate is 7% forever, what is the present value of this “black box”? c) What is the future value of an annuity due with a $15 cash flow, 4% annual interest with quarterly compounding three-years from now? d) If the...