Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
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The following investment requires a table factor for a period beyond the
table. Calculate the new table factor and the present value (principal). Use
Table 11-2. Round your new table factor to five decimal places and your
present value to the nearest cent.
Compound
Term of
Nominal
Interest
New Table
Present
Amount
Investment (years)
Rate (%)
Compounded
Factor
Value
$34,000
38
7
annually
2$
Transcribed Image Text:The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your present value to the nearest cent. Compound Term of Nominal Interest New Table Present Amount Investment (years) Rate (%) Compounded Factor Value $34,000 38 7 annually 2$
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