Gary King will deposit $27500 into an account today that earns 13% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years? Type of Cash Flow Periods Interest Rate Factor PV of $1 5 13% 0.5428 FV of $1 5 13% 1.8424 PV ordinary annuity 5 13% 3.5172 FV ordinary annuity 5 13% 6.4803 PV annuity due 5 13% 3.9744 $25333 $50666 $14927
Gary King will deposit $27500 into an account today that earns 13% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years? Type of Cash Flow Periods Interest Rate Factor PV of $1 5 13% 0.5428 FV of $1 5 13% 1.8424 PV ordinary annuity 5 13% 3.5172 FV ordinary annuity 5 13% 6.4803 PV annuity due 5 13% 3.9744 $25333 $50666 $14927
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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Gary King will deposit $27500 into an account today that earns 13% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years?
Type of Cash Flow |
Periods
|
Interest Rate
|
Factor
|
---|---|---|---|
PV of $1
|
5
|
13%
|
0.5428
|
FV of $1
|
5
|
13%
|
1.8424
|
PV ordinary annuity
|
5
|
13%
|
3.5172
|
FV ordinary annuity
|
5
|
13%
|
6.4803
|
PV annuity due
|
5
|
13%
|
3.9744
|
$25333
$50666
$14927
$29854
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