Question
16 Mary Jane would like to save $10,000 by the time she finishes college and is trying to calculate how much she should invest today.
16 Mary Jane would like to save $10,000 by the time she finishes college and is trying to calculate how much she should invest today. A Lump sum / PV$ C Lump sum / FV$
B Annuity / PVA D Annuity / FVA
17 LeAnn wishes to know how much she should set aside each month at 7% interest in order to accumulate a sum of $5,000 in four years.
A Lump sum / PV$ C Lump sum / FV$
B Annuity / PVA D Annuity / FVA
18 How much will $5,000 invested at the end of each year grow to in six years, assuming an interest rate of 7% compounded annually?
A Lump sum / PV$ C Lump sum / FV$
B Annuity / PVA D Annuity / FVA
19 What is the value today of receiving $3,000 at the end of each year for the next three years, assuming an interest rate of 3% compounded annually?
A Lump sum / PV$ C Lump sum / FV$
B Annuity / PVA D Annuity / FVA
20 ABC Corporation hires a new chief executive officer and promises to pay her a signing bonus of $2 million per year for 10 years, starting at the end of the first year. The value of this signing bonus is:
A Lump sum / PV$ C Lump sum / FV$
B Annuity / PVA D Annuity / FVA
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
