On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual interest rate): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
Required:
1. What is the cost of the truck that should be recorded at the time of purchase? (Round your answer to nearest whole dollar.)
3. What single amount must be deposited in this account on January 1 of this year? (Round your answer to nearest whole dollar.)
4. What single sum must be deposited in the bank on January 1 of this year? (Round your answer to nearest whole dollar.)
Answer | |
Answer 1 | using PV formula in excel: |
PV(rate,nper,pmt,fv) | |
PV(0.1,3,0,-61800) | |
$ 46,431.25 | |
Answer 3 | Use pv formula in excel to calculate this: |
PV(rate,nper,pmt,fv) | |
PV(0.1,7,0,93600) | |
=$ 48,031.60 | |
Answer 4 | use PV formula in excel: |
PV(0.1,10,41800,0) | |
=$ 256,842.91 |
On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual...
On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual interest rate): (FV of $1. PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) a. Bought a delivery truck and agreed to pay $60,600 at the end of three years. b. Rented an office building and was given the option of paying $10,600 at the end of each of the next three years or paying...
On January 1 of this year, Shannon Company completed the following transactions (assume a 9% annual interest rate): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Bought a delivery truck and agreed to pay $60,100 at the end of three years. Rented an office building and was given the option of paying $10,100 at the end of each of the next three years or paying $28,100 immediately....
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On January 1 of this year, Shannon Company completed the following transactions (assume a 9% annual interest rate): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) a. Bought a delivery truck and agreed to pay $61,000 at the end of three years. b. Rented an office building and was given the option of paying $11,000 at the end of each of the next three years or paying...
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On January 1 of this year, Shannon Company completed the following transactions (assume a 8% annual interest rate): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) 1. Bought a delivery truck and agreed to pay $61,400 at the end of three years. 2. Rented an office building and was given the option of paying $11,400 at the end of each of the next three years or paying...
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