1- If the future value of an ordinary, seven-year annuity is $6,000 andinterest rates are 7.5 percent, what is the future value of the same annuitydue?2- Approximately how many years does it take to double a $600 investmentwhen the interest rate is 9 percent per year?3- What annual rate of return is earned on a $5,000 investment when itgrows to $9,000 in five years?4-You wish to buy a $26,000 car. The dealer offers you a four-year loan witha 7 percent APR. What are the Annual payments?5- What is the value in year 13 of a $250 cash flow made in year 3 if interestrates are 12 percent9747,6768.56,678.232.64%34.2%12.5%800776.56,450

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Answered: 1- If the future value of an ordinary,…

1- If the future value of an ordinary, seven-year annuity is $6,000 and interest rates are 7.5 percent, what is the future value of the same annuity due?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Question

1- If the future value of an ordinary, seven-year annuity is $6,000 and
interest rates are 7.5 percent, what is the future value of the same annuity
due?
2- Approximately how many years does it take to double a $600 investment
when the interest rate is 9 percent per year?
3- What annual rate of return is earned on a $5,000 investment when it
grows to $9,000 in five years?
4-You wish to buy a $26,000 car. The dealer offers you a four-year loan with
a 7 percent APR. What are the Annual payments?
5- What is the value in year 13 of a $250 cash flow made in year 3 if interest
rates are 12 percent
974
7,676
8.
56,678.2
32.64%
34.2%
12.5%
800
776.5
6,450

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