Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#1. #2 #3 For each of the following situations involving single amounts, solve for the unknown Assume that interest is compounded annually - Interest rate,

#1.
image text in transcribed
#2
image text in transcribed
#3
image text in transcribed
For each of the following situations involving single amounts, solve for the unknown Assume that interest is compounded annually - Interest rate, and n-number of years) (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of S1 and PVAD of 51) (Use appropriate factor) from the tables provided. Round your final answers to nearest whole dollar amount.) Answer is not complete. Present Value 1. 12 $ Future Value $ 68,000 $ 82.000 $ 47000 s 170.000 14 2 3 100% 5.0% 7.0% 10.0% 70% 14 41,416 18,228 30,576 23.521 S 4 5. Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021 Payment was made in the form of a noninterest bearing note requiring Lincoln to make six annual payments of $6,200 on each September 30, beginning on September 30, 2024. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar amount.) Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 8% properly reflects the time value of money in this situation Answer is complete but not entirely correct. Amount recorded $ 5,741 % On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $120 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10% Interest is paid semiannually on March 31 and September 30. ((FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of the bonds on September 30, 2021 (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.) Answer is complete but not entirely correct. n Table values are based on: 40 5% Cash Flow Amount Present Value Interest $ 18,400,000 $ 11.200.000 Principal $ 120,000,000 192 181 808 Price of bonds $ 231955,808 X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Concept Audits A Philosophical Method

Authors: Nicholas Rescher

1st Edition

1498540392, 978-1498540391

More Books

Students also viewed these Accounting questions

Question

Build and maintain a positive reputation.

Answered: 1 week ago