Question

The following situations should be considered independently. (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.) 1. John Jamison wants to accumulate $60,000 for a down payment on a small business. He will invest $30,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal? 2. The Jasmine Tea Company purchased merchandise from a supplier for $28,700. Payment was a noninterest-bearing note requiring Jasmine to make five annual payments of $7,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement? 3. Sam Robinson borrowed $10,000 from a friend and promised to pay the loan in 10 equal annual Installments beginning one year from the date of the loan. Sam's friend would like to be reimbursed for the time value of money at a 9% annual rate. What is the annual payment Sam must make to pay back his friend? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 John Jamison wants to accumulate $60,000 for a down payment on a small business. He will invest $30,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal? (Do not round intermediate calculations. Round the value of "n" to the nearest whole number.) Present Value: Future Value Required 2 >

Answer 1

rate positively ..

Ans 1	We have to use financial calculator to solve this
	put in calculator -
	PV		-30000
	FV		60000
	PMT		0
	I		8%
	Compute N		9
	Therefore answer =		9	year
Ans 2	We have to use financial calculator to solve this
	put in calculator -
	PV		-28700
	FV		0
	PMT		7000
	N		5
	Compute I		7.00%
	therefore rate =		7.00%
Ans 3	We have to use financial calculator to solve this
	put in calculator -
	PV		-10000
	FV		0
	I		9%
	N		10
	compute PMT		$1,558.20
	therefore answer =			$1,558.20