Practice with Tables Refer to the appropriate tables on pages 783-786. Required: Note : Round answers to two decimal places. Determine the: a. present value of $1,200 to be received in 7 years, assuming that the interest (discount) rate is 8% per year. b. present value of an annuity of seven cash flows of $1,200 each (one at the end of each of the next 7 years) for which the interest (discount) rate is 8% per year. c. future value of a single cash flow of $1,200 that earns 8% per year for 7 years. d. future value of an annuity of seven cash flows of $1,200 each (one at the end of each of the next 7 years), assuming that the interest rate is 8% per year.

BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881
BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

Solutions

Chapter A3, Problem 12E
Textbook Problem

Practice with Tables

Refer to the appropriate tables on pages 783-786.

Required:

Note: Round answers to two decimal places. Determine the:

a. present value of $1,200 to be received in 7 years, assuming that the interest (discount) rate is 8% per year.

b. present value of an annuity of seven cash flows of $1,200 each (one at the end of each of the next 7 years) for which the interest (discount) rate is 8% per year.

c. future value of a single cash flow of $1,200 that earns 8% per year for 7 years.

d. future value of an annuity of seven cash flows of $1,200 each (one at the end of each of the next 7 years), assuming that the interest rate is 8% per year.

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Chapter A3 Solutions

Cornerstones of Financial Accounting

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