Question
2) Mayer Company signed a lease for an office building for a period of 10 years. Under the lease agreement, a security deposit of $7,200
2) Mayer Company signed a lease for an office building for a period of 10 years. Under the lease agreement, a security deposit of $7,200 is made. The deposit will be returned at the expiration of the lease with interest compounded at 8% per year.(use the factot table) (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will Mayer receive at the time the lease expires? (Round answer to 2 decimal places, e.g. 25.25.)
3)Ekman Company issued $1,100,000, 11-year bonds and agreed to make annual sinking fund deposits of $71,500. The deposits are made at the end of each year into an account paying 6% annual interest. Click here to view the factor table.a (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will be in the sinking fund at the end of 11 years? (Round answer to 2 decimal places, e.g. 25.25.)
4)Terry and Jessica Benedict invested $6,300 in a savings account paying 8% annual interest when their daughter, Kristi, was born. They also deposited $1,400 on each of her birthdays until she was 15 (including her 15th birthday). Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much was in the savings account on her 15th birthday $ (after the last deposit)? (Round answer to 2 decimal places, e.g. 25.25.)
5) Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What is the present value of $25,600 due 10 periods from now, discounted at 10%? (Round answer to 2 decimal places, e.g. 25.25.) Present value $ (b) What is the present value of $25,600 to be received at the end of each of 7 periods, discounted at 6%? (Round answer to 2 decimal places, e.g. 25.25.)
6) Elmdale Company is considering an investment that will return a lump sum of $725,500, 6 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Elmdale Company pay for this investment to earn a 12% return? (Round answer to 2 decimal places, e.g. 25.25.) Elmdale Company should pay
7) Orear Company earns 6% on an investment that will return $491,500, 8 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the amount Orear should invest now to earn this rate of return? (Round answer to 2 decimal places, e.g. 25.25.) Orear Company should invest
8) Dayton Company is considering investing in an annuity contract that will return $34,300 annually at the end of each year for 19 years. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Dayton Company pay for this investment if it earns a 9% return?
9) Nolasko Enterprises earns 12% on an investment that pays back $90,100 at the end of each of the next 7 years. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the amount Nolasko Enterprises invested to earn the 12% rate of return? (Round answer to 2 decimal places, e.g. 25.25.)
10) Brief Exercise D-15 Robertson Company receives a $75,700, 8-year note bearing interest of 10% (paid annually) from a customer at a time when the discount rate is 10%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the note received by Robertson? (Round answer to 2 decimal places, e.g. 25.25.) Present value of note received
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