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does anyone know how to do this probelm question??? its mangerial accounting btw theres tbales that was given to us to answer the question. Theres
does anyone know how to do this probelm question??? its mangerial accounting btw
Exercise B-2 (Algo) Present value of an amount LO P1 On January 1, a company agrees to pay $17,000 in nine years. If the annual interest rate is 3%, determine how much cash the company can borrow with this agreement. (PV of \$1. EV of \$1. PVA of \$1, and EVA of $1 ) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Table B.I* Tresent Value of 1 p=1/(1+i)n -Used to compite the present vahue of a known funure amount. For example: How much would you need to invest today at los compounded sentarnally fo accumulare \$5, 0 . years from today? Using the foctors of n=12 and i i=5% ( 12 semiannual periods and a semiannual rate of 5%, the factor is 0.5568 , You would need to invest $2,784 todaty 0.5568). Table 8.2 Future Value of 1 f=(1+i)n Wsed to compute the finture value of a known present amouat. For example; What is the acenomalated value of $3,000 invested today at 85 compounded quarterly for 5 ynar: the factors of n=20 and i=25 (20 quarterly periods and a quarterly interest rate of 2% ). the factor is 1.4859 . The accumilared value is $4.457.70 ( 53,000 x. I.4859). Tahle BSFFresentValueofanAuablyof1 p=111/(1+e24 Used to calculate the presens value of a series of equal payments made at the end of each poriod. For example: What is the present value of $2,000 per year for lo years assumint annual interest rate of 99 ? For (n=10,i=90C), the PV fachor is 6.4177,$2,000 per year for 10 years ix the equivalent of $12.835 roday (\$2.000 6,4177. Table B.AlFuture Vatue of an Amaity of 1 f=(1+n2+1}) SUsed to catlialate the future value of a series of equal poyments made at the end of each period. Far example: What is the future vilue of S4 ,000 per yoar far 6 yeart attuming un anewat interest rate of 8%. For (n=6,i=8%6), the FV factor is 73359.54,000 per year for 6 years accumilates 60529343.60 ( $4,00073359 ) theres tbales that was given to us to answer the question. Theres 4 of them
these are the 4 tables and it didnt fit in one picture so it may look alot but its just 4
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