6-3 What is the future value of $7,540 at the end of 7 periods at 8% compounded interest? What is the present value of $7,540 due 9 periods hence, discounted at 11%? What is the future value of 15 periodic payments of $7,540 each made at the end of each period and compounded at 10%? What is the present value of $7,540 to be received at the end of each of 18 periods, discounted at 5% compound interest? 6-6 Dwayne Wade Company recently signed a lease for a new office building, for a lease period of 12 years. Under the lease agreement, a security deposit of $14,840 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 10% per year. What amount will the company receive at the time the lease …show more content…
What are each of Clarence’s contributions to the fund? 6-16 Jasper Parnevik borrowed $95,430 on March 1, 2012. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2022. To retire this debt, Alex plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2017, and for the next 4 years. The fund is expected to earn 10% per annum. How much must be contributed each year by Jasper Parnevik to provide a fund sufficient to retire the debt on March 1, 2022? 6-1 On January 1, 2014, Fishbone Corporation sold a building that cost $261,100 and that had accumulated depreciation of $107,300 on the date of sale. Fishbone received as consideration a $250,600 non-interest-bearing note due on January 1, 2017. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2014, was 10%. At what amount should the gain from the sale of the building be reported? On January 1, 2014, Fishbone Corporation purchased 320 of the $1,000 face value, 10%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2024, and pay interest annually beginning January 1, 2015. Fishbone purchased the bonds to yield 11%. How much did Fishbone pay for the bonds? Fishbone Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,670 at the end of each of the next 10 years. Assuming that
academic year interest rate of 3.76 percent would pay a 5,032 dollars interest over 10 years,
How much would you pay for a security that pays you $500 every 4 months for the next 10 years if you require a return of 8% per year compounded monthly?
Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.
| |finance the balance. How much will each monthly loan payment be if they can borrow the necessary funds for 30 years at 9% per |
What annual interest rate is needed to produce $200,000 after five years if only $100,000 is invested?
24. Mobilee Oil Company accepted a $10,000, 120-day note, dated March 3, at 8.5% to settle a past due accounts receivable. Mobilee Oil discount the note to raise cash on May 10 at a discounted rate of 9%. What proceeds did Mobilee Oil receive?
9. What is the present value of an 8-year annuity that makes quarterly payments of $73 if
ABC Company signed a 5-year note payable for $80,000 at 9% annual interest. What is the interest expense for December 31, 2009 if the note was
10. An investment of $1,000 today will grow to $1,100 in one year. What is the continuously compounded rate of return?
a. What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%.
A person deposited $500 in a savings account that pays 5% annual interest that is compounded yearly. At the end of 10 years, how much money will be in the savings account? (Bluman, A. G. 2005, page 230).
= 1,092,000 - ((6.2% x 50% x 12,480,000 x (191/365)) + (5.6% x 13,572,000 x (191/365))
1. Assume that at retirement you have accumulated $825,000 in a variable annuity contract. The assumed investment return is 5.5% and your life expectancy is 18 years. What is the hypothetical constant benefit payment?
First we need to get the present value of the annuity for the 1,500 semiannual PMTs at year 14
Assume that the annual payments in the sixth year is equal to the rental payment in the fifth year ( 112.9 and 86.0) and the remainder of the lump sum values (54.6 and 17.8) is due in the seventh year. With a discount rate of 5.4%, the present values of the rental payments for the years 2006 and 2007 are as follows: