For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor.1. In a future value of 1 table:Annual Rate Number ofYears Invested Compoundeda. 9% 9 Annuallyb. 12% 5Quarterlyc. 10%15Semiannually2. In a present value of an annuity of 1 table:Annual Rate Number ofYears Involved Number ofRents Involved Frequency of Rents a. 9% 25 25 Annuallyb. 10%1530Semiannuallyc. 12% 728Quarterly

For 1. Option Rate of interest number of periods a. 9% 9 b. 2% 20 c. 5% 30

Answered: For each of the following cases,…

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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For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor.

1. In a future value of 1 table:

Annual Rate		Number of Years Invested	Compounded
a. 9%		9	Annually
b. 12%	5	Quarterly
c. 10%	15	Semiannually

2. In a present value of an annuity of 1 table:

Annual Rate		Number of Years Involved		Number of Rents Involved	Frequency of Rents
a. 9%		25		25	Annually
b. 10%	15	30	Semiannually
c. 12%	7	28	Quarterly

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