With the following questions, why is 'n' value backwards?#1: Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund’s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund’s balance. The first deposit is made on December 31, 2017, and interest is compounded quarterly.#2: Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2018, of a five-period annual annuity of $5,000 under each of the following situations. The first payment is received on December 31, 2019, and interest is compounded quarterly. Required 1Required 3Required 2Required 4The first deposit is made on December 31, 2017, and interest is compounded quarterlywhole dollar amount.)DepositDateFund Balance12/31/2021Deposit3%$$12/31/2017162,0003,2093%12/31/2018122,0002,8523%12/31/20192,0002,53412/31/20203%2,0002,251410,846Required 2Required 3Required 1The first payment is received on December 31, 2019, and interest is compounded quarterly. (Round your final answers tonearest whole dollar amount.)DepositDatePV-Deposit12/31/2018$$3%12/31/201944,4425,0003%12/31/20205,0003,9473%12/31/2021125,0003,50712/31/20223%165,0003,1163%2012/31/20235,0002,768$17,780( SOES

Annual Deposit: Annual deposit refers to the amount deposited annually in a fund or for a specific…

Answered: Required 1 Required 3 Required 2…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.1DC: Reading 3M Companys Balance Sheet: Accounts Receivable The following current asset appears on the...

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With the following questions, why is 'n' value backwards?

#1: Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund’s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund’s balance. The first deposit is made on December 31, 2017, and interest is compounded quarterly.

#2: Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2018, of a five-period annual annuity of $5,000 under each of the following situations. The first payment is received on December 31, 2019, and interest is compounded quarterly.

Required 1
Required 3
Required 2
Required 4
The first deposit is made on December 31, 2017, and interest is compounded quarterly
whole dollar amount.)
Deposit
Date
Fund Balance
12/31/2021
Deposit
3%
$
$
12/31/2017
16
2,000
3,209
3%
12/31/2018
12
2,000
2,852
3%
12/31/2019
2,000
2,534
12/31/2020
3%
2,000
2,251
4
10,846
Required 2
Required 3
Required 1
The first payment is received on December 31, 2019, and interest is compounded quarterly. (Round your final answers to
nearest whole dollar amount.)
Deposit
Date
PV-
Deposit
12/31/2018
$
$
3%
12/31/2019
4
4,442
5,000
3%
12/31/2020
5,000
3,947
3%
12/31/2021
12
5,000
3,507
12/31/2022
3%
16
5,000
3,116
3%
20
12/31/2023
5,000
2,768
$
17,780
( SOES

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