QUESTION 42Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30years @ 6% annual interest rate:Following are appropriate factors from tables:Table% / nPresent Value ofannuity due $16%/3012.15812$33,3333.33O $72,648.92Present Value ofordinary annuity of $113.76483Present value of $1.17411$????????? invested annually at the end of the year. Required Computations:O $12,648.91O $11,927.43Future Value ofordinary annuity of$179.05819

The value of an asset or investment on a particular future date is known as its future value. Stated…

QUESTION 42 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 6%/30 12.15812 Present Value of ordinary annuity of $1 13.76483 Present value of $1 .17411 $????????? invested annually at the end of the year. Required Computations: O $12,648.91 O $11,927.43 O $33,3333.33 O $72,648.92 Future Value of ordinary annuity of $1 79.05819

QUESTION 42 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 6%/30 12.15812 Present Value of ordinary annuity of $1 13.76483 Present value of $1 .17411 $????????? invested annually at the end of the year. Required Computations: O $12,648.91 O $11,927.43 O $33,3333.33 O $72,648.92 Future Value of ordinary annuity of $1 79.05819

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 17E

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QUESTION 42 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 6%/30 12.15812 13.76483 .17411 79.05819 $????????? invested annually at the end of the year. Required Computations: $12,648.91 $72,648.92 $33,3333.33 $11,927.43
QUESTION 41 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 6%/30 12.15812 13.76483 .17411 79.05819 One single deposit of $???????? for 30 years. Required Computations: $166,666.66 $174,110 $175,933.83 $126,489
[Question 21 Galoraz Bhd has a line of credit of RM325,000 with an interest rate of 1.85 percent per quarter. Their short-term investments earning is 0.48 percent per quarter. What is the effective annual interest rate (EAR) on this arrangement if the line of credit goes unused all year? Assume any funds borrowed or invested use compound interest. Select one: A. 7.61% B. 2.14% C. 1.93% D. 10.38%
Question 11 Find the future value of a 3 years investment of $5,000 that earns 6 percent compounded monthly.
Investment End of Year A B C 1 $ 2,000 $ 1,000 $ 4,000 2 3,000 1,000 4,000 3 4,000 1,000 (4,000) 4 (5,000) 1,000 (4,000) 5 5,000 3,000 14,000 What is the present value of each of these three investments if the appropriate discount rate is 11 percent? a. What is the present value of investment A at an annual discount rate of 11 percent? b. What is the present value of investment B at an annual discount rate of 11 percent C. What is the present value of investment C at an annual discount rate of 11 percent?
Question 5: Bronco's four-year investment just matured at $26,178.21. If the investment earned semi-annually compounded interest rates of 4.5% and 4.75% in the first two years, followed by monthly compounded interest rates of 5% and 5.1% in the last two years, how much money did Bronco initially invest?