Check my work 6 Determine the present value of the following single amounts (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.): 10 points i = n = Present Value 1 6% 11 2 Future Amount $ 25,000 $ 19,000 $ 30,000 $ 45.000 10% 14 3. 29 12% 11% eBook 4. 10 Hint References 7 Determine the combined present value as of December 31, 2021, of the following four payments to be received at the end of each of the designated years, assuming an annual interest rate of 8%. (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) 10 points Payment $10,000 10,500 12,000 14,500 Year Received 2022 2023 2025 2027 eBook = n = n = Payment Present Value Year Received 2022 References 8% $ 10,000 2023 8% 10,500 2025 8% 12,000 14,500 2027 8% Total Knowledge Check 01 Dern Company recently sold a large order of tables to Knoll Furniture Store. Terms of the sale require Knoll to sign a noninterest- bearing note of $21,000 with payment due in three years. A rate of 9% reflects the appropriate interest rate for a loan of this type of loan. At what amount should Dern and Knoll value the note receivable/payable and corresponding sales revenue/inventory? (FV of $1, PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round final answer to the nearest whole dollars.) Amount Chapter 5 Homework Saved Help Save & Exit Submit Check my work 9 The Field Detergent Company sold merchandise to the Abel Company on June 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Abel to pay $85,000 on June 30, 2023. Assume that a 10% interest rate properly reflects the time value of money in this situation. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 10 points Required: Calculate the amount at which Field should record the note receivable and corresponding sales revenue on June 30, 2021. (Round your final answers to nearest whole dollar amount.) eBook Table or calculator function: References Future value: n = i = PV Note/Revenue 10 The graph below shows present values and future values of single payments for various interest rates over six periods. Answer the following questions. 10 points Future Value and Present Value of a Single Payment Future $3,500 Values eBook $3,000 References $2,986 $2,500 $2,000 $1,772 $1,500 Present Values $1,340 $1,000 $1,126 $1,000 $500 $0 n=0 1 2 3 4 5 6 +2% -5% -10% -20% Click here to open the graph(s) in a new tab. Requlred: 1. 1. Today (n = 0), a company invests $1,000 and expects that investment to grow 10% each period for the next six periods (n = 6). What is the investment's expected future value? 2. A company expects to receive $1,772 in six periods. What is that amount's present value, assuming the company's other current investment opportunities are expected to earn 10% per period? 3. The difference between the present value and future value for a given rate represents: 4. The difference between present value and future value: The difference between present value and future value: A company has the choice of receiving $1,000 today from a customer or receiving $1,340 in six periods. 6. Which option does the company prefer, assuming the company's other current investment opportunities are expected to earn 5% per period? A company has the choice of receiving $1,000 today from a customer or receiving $1,200 in six periods. 7. Which option does the company prefer, assuming the company's other current investment opportunities are expected to earn 2% per period? 5
