Present and future value tables of $1 at 3% are presented below:.FV $1PV $1FVA $1PVA $1FVAD $1PVAD $11.03000 0.970871.00000.970871.03001.000001.06090 0.942602.03001.913472.09091.970873 1.09273 0.915143.09092.828613.18362.9134741.12551 0.888494.18363.717104.30913.828614.579711.15927 0.862611.19405 0.837485.30915.46844.717106.46845.417196.66255.579717.1.22987 0.813097.66256.230287.89236.417198.1.26677 |0.789418.89237.019699.15917.2302810.46398.0196910.159111.46399.1.30477 0.766427.7861110 1.34392 10.744098.5302011.80788.7861111 1.38423 0.7224212.80789.2526213.19209.5302014.6178 10.2526216.0863 10.9540017.5989 11.6349619.1569 12.2960720.7616 12.9379412 1.42576 0.7013814.19209.9540015.6178 10.6349617.0863 11.2960718.5989 11.9379413 1.46853 0.6809514 1.51259 0.6611215 1.55797 0.6418616 1.60471 0.6231720.1569 12.561106 of 15Next >< PrevIN56 HelpSave &Bill wants to give Maria a $530,000 gift in 5 years. If money is worth 6% compounded semiannually, what is Maria's gift worth today?Multiple Choice$394,368.$395,893$392.973.$527.250Prey5 of 15Next >

Time value of money is a concept according to which the value of money to be paid or received today…

Answered: Bill wants to give Maria a $530,000…

Bill wants to give Maria a $530,000 gift in 5 years. If money is worth 6% compounded semiannually, what is Maria's gift worth today? Multiple Choice $394,368. $395,893. $392.973. $527,250

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

Present and future value tables of $1 at 3% are presented below:.
FV $1
PV $1
FVA $1
PVA $1
FVAD $1
PVAD $1
1.03000 0.97087
1.0000
0.97087
1.0300
1.00000
1.06090 0.94260
2.0300
1.91347
2.0909
1.97087
3 1.09273 0.91514
3.0909
2.82861
3.1836
2.91347
4
1.12551 0.88849
4.1836
3.71710
4.3091
3.82861
4.57971
1.15927 0.86261
1.19405 0.83748
5.3091
5.4684
4.71710
6.4684
5.41719
6.6625
5.57971
7.
1.22987 0.81309
7.6625
6.23028
7.8923
6.41719
8.
1.26677 |0.78941
8.8923
7.01969
9.1591
7.23028
10.4639
8.01969
10.1591
11.4639
9.
1.30477 0.76642
7.78611
10 1.34392 10.74409
8.53020
11.8078
8.78611
11 1.38423 0.72242
12.8078
9.25262
13.1920
9.53020
14.6178 10.25262
16.0863 10.95400
17.5989 11.63496
19.1569 12.29607
20.7616 12.93794
12 1.42576 0.70138
14.1920
9.95400
15.6178 10.63496
17.0863 11.29607
18.5989 11.93794
13 1.46853 0.68095
14 1.51259 0.66112
15 1.55797 0.64186
16 1.60471 0.62317
20.1569 12.56110
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Bill wants to give Maria a $530,000 gift in 5 years. If money is worth 6% compounded semiannually, what is Maria's gift worth today?
Multiple Choice
$394,368.
$395,893
$392.973.
$527.250
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