EconomicsTestronA person deposits $150 per month into a savings account for 2 years. If 575 is withdrawn in months 47 and 8 (in addition to the deposits) construct the cash flow dugram to determine howmuch will be in the account after 2 years at i-6% per year, compounded quarterly. Assume there is no interperiod interest.O $3.549$2.245O $3,090$4,050

Cash is considered as one of the most important and valuable factors of the business, without which…

A person deposits $150 per month into a savings account for 2 years. If $75 is withdrawn in months 4 7 and 8 (in addition to the deposits construct the cash flow dagram to determine how much will be in the account after 2 years at i-6% per year, compounded quarterly. Assume there is no interperiod interest. O 33,549 $2.245 O 3.090 o 14.050 O o o o

A person deposits $150 per month into a savings account for 2 years. If $75 is withdrawn in months 4 7 and 8 (in addition to the deposits construct the cash flow dagram to determine how much will be in the account after 2 years at i-6% per year, compounded quarterly. Assume there is no interperiod interest. O 33,549 $2.245 O 3.090 o 14.050 O o o o

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 15E

See similar textbooks

Similar questions

Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions Kristen Quinn makes equal deposits of $500 semiannually for 4 years. Required: What is the future value at 8%? (Note: Round answers to two decimal places.)
Future Value of a Single Cash Flow Jenkins Products has just been paid $25,000 by Shirley Enterprises, which has owed Jenkins this amount for 30 months but been unable to pay because of financial difficulties. Had it been able to invest this cash, Jenkins assumes that it would have earned an interest rate of 12% compounded monthly (1% per month). Required: Note: Round answers to two decimal places. 1. Prepare a cash flow diagram for the investment that could have been made if Shirley had paid 30 months ago. 2. Determine how much Jenkins has lost by not receiving the $25.000 when it was due 30 months ago. 3. CONCEPTUAL CONNECTION Indicate whether Jenkins would make an entry to account for this loss. Why or why not?
Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at the annual rate of 12% compounded semiannually if the deposit is maintained for 4 years. Required: Calculate the balance of the savings account at the end of the 4-year period.
A ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the loan principal, paid annually. Assume no interest is paid or accumulated on the loan until the final repayment. How much of the loan principal is considered a current portion of a noncurrent note payable in year 3? A. $50,000 B. $150,000 C. $100,000 D. $250,000
Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?