ZuoTi.Pro
Question

Present Value and Future Value Lloyd Inc. estimates that it will need $150,000 in 9 years...

Present Value and Future Value

Lloyd Inc. estimates that it will need $150,000 in 9 years to expand its manufacturing facilities. A bank has agreed to pay Lloyd 6% interest compounded annually if the company deposits the entire amount now needed to accumulate $150,000 in 9 years.

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

Required:

How much money does Lloyd need to deposit now? Be sure to use all digits shown on the table and round your answer to a whole dollar.
$

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Calculate present value :

Future value = Present value*(1+i)n

150000 = X*(1+.06)9

150000*0.5919 = X

X = $88785

So $88785 should deposit now..

0 0
Add a comment
Know the answer?
Add Answer to:
Present Value and Future Value Lloyd Inc. estimates that it will need $150,000 in 9 years...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Exercise 9-13 Present Value and Future Value LO6 Example 9-10 Brian Inc. estimates that it will...

    Exercise 9-13 Present Value and Future Value LO6 Example 9-10 Brian Inc. estimates that it will need $150,000 in ten years to expand its manufacturing facilities. A bank has agreed to pay Brian 5% interest compounded annually if the company deposits the entire amount now needed to accumulate $150,000 in ten years. How much money does Brian need to deposit?

  • 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...

  • Present and future value tables of $1 at 9% are presented below. N FV $1 PV...

    Present and future value tables of $1 at 9% are presented below. N FV $1 PV $1 FVA $1 FVAD $1 PVA $1 PVAD $1 1 1.09000 0.91743 1.0000 1.0900 0.91743 1.00000 2 1.18810 0.84168 2.0900 2.2781 1.75911 1.91743 3 1.29503 0.77218 3.2781 3.5731 2.53129 2.75911 4 1.41158 0.70843 4.5731 4.9847 3.23972 3.53129 5 1.53862 0.64993 5.9847 6.5233 3.88965 4.23972 6 1.67710 0.59627 7.5233 8.2004 4.48592 4.88965 You want to invest $8,300 annually beginning now in order to accumulate $29,310...

  • Steve Jones has decided to start saving for his son's college education by depositing $2,000 at...

    Steve Jones has decided to start saving for his son's college education by depositing $2,000 at the end of every year for 15 years. A bank has agreed to pay interest at the rate of 4% compounded annually. 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 Required: How much will Steve have in the bank immediately after his 15th deposit? Round your answer...

  • Exercise B-19 Using present and future value tables LO C1, P1, P2, P3, P4 For each of the following situations, identify...

    Exercise B-19 Using present and future value tables LO C1, P1, P2, P3, P4 For each of the following situations, identify (1) the case as either (a) a present or a future value and (b) a single amount or an annuity, (2) the table you would use in your computations (but do not solve the problem), and (3) the interest rate and time periods you would use. (PV of $1, FV of $1, PVA of $1, and FVA of $1)...

  • What is the present value of $929 to be received in 13.5 years from today if...

    What is the present value of $929 to be received in 13.5 years from today if our discount rate is 3.5 percent? PLEASE SHOW ME EXACTLY HOW TO DO THE PROBLEM!!!! I INSERTED A PICTURE FOR AN EXAMPLE! Future Value after 9 years is calculated using EXCEL FUNCTION FV(rate, nper,pmt, pv,type) where rate-1.5%; nper-9; pmt-o; pe-3520000; type=0; Here, value for pv is negative as it denotes cash inflows; type as interest is compounded at the end of each period only....

  • Time Value of Money Concept The following situations involve the application of the time value of...

    Time Value of Money Concept The following situations involve the application of the time value of money concept. Use the full factor when calculating your results. 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. Janelle Carter deposited $9,540 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January...

  • You will need at least $5,100 in four years and your friend says she can either...

    You will need at least $5,100 in four years and your friend says she can either loan you $5100 all at once four years from now or she can deposit $1275 in your savings account at the end of each year for the next four years. Your savings account earns 9% Interest, compounded annually. Which option would be worth more to you four years from now, and how much more? (Future Value of $1. Present Value of $1. Future Value...

  • 7. Use the present value formula or the future value table to determine the rate of...

    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...

  • Using the appropriate present value table and assuming a 12% annual interest rate, determine the present...

    Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2021, of a five-period annual annuity of $5,900 under each of the following situations: (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.) The first payment is received on December 31, 2022, and interest is compounded annually. The first payment is received on...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT