Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter B, Problem 6E
Summary Introduction
Concept Introduction:
Future value is the value of present money after a period of time. Future value of present money is calculated using the interest rate and period. The present value of a sum is multiplied with the future value factor to get the future value.
To calculate: the future value of the investment.
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Students have asked these similar questions
Catten, Inc., invests $163,170 today earning 7% per year for nine years. Use Table B.2 to compute the future value of the investment nine years from now. (Round the amount to the nearest dollar.)
If
$10,000
is invested in a certain business at the start of the year, the investor will receive
$3,000
at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is
4%
per year?
A.
$1,068
B.
$890
C.
$445
D.
$1424
If $10,000 is invested in a certain business at the start of the year, the investor will receive $3,000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 3% per year?
Chapter B Solutions
Loose Leaf for Financial Accounting: Information for Decisions
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- If an asset declines in value from 5,000 to 3,500 over nine years, what is the mean annual growth rate in the assets value over these nine years?arrow_forwardABC Corporation has invested $2.5 million every 3 months in an investment which earns interest at the rate of 10.5% per year compounded quarterly. The first investment will be at the end of this current quarter. To what sum will the investment grow at the end of 5 years? How much interest will be earned during this period? After 5 years the corporation give loan to XYZ Company that accumulated amount for another 3 years. What amount finally ABC Corporation will have after 8 years time. How much interest will be earned after 8 years.arrow_forwardAn investment of $15,785 is accumulated at 6.5% compounded quarterly for 5 years. At that time the interest rate is changed to 4.3% compounded monthly. How much is the investment worth after 10 years? Answer to the nearest cent.arrow_forward
- An investment will return $125 at the end of each month for 5 years and then $250 at the end of each month for the next 3 years. What is the present value of the earnings on this investment calculated at the annual rate of 6.00% per year compounded monthlty (0.5%) per month?arrow_forwardAn executive invests $22,000, some at 7% and some at 6% annual interest. If he receives an annual return of $1,420, how much is invested at each rate? Pls thanksarrow_forward
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