Exercise A3-17 (Algorithmic) Present Values Use Present Value Tables or your calculator to complete the requirements below. Required: a. Determine the present value of a single $13,000 cash flow in 7 years at the interest (discount) rate is % per year Round your answer to the nearest cent, munding required. 5 b. Determine the number of perlods for which $5,820 must be invested at an annual interest (sisetunt rate of 7 to produce an investment balance of $10,000. Hound you answer to the nearest whole number of periods, If rounding is required periods c. Determine the site of the annual cash flow for a 25-year annuity with a present value of $49,113 and an annual interest rate of 94. One payment is made at the end of each year. Round your answer to the nearest cont, if rounding is required. d. Determine the annual interest rate at which an investment of $2,542 will provide for a single 54,000 cash flow in 4 years, Round your swer to the nearest whole percenta rate (for example, 10.8 rounds to 1196) e. Determine the annual interest rate earned by an annuity that costs $17,115 and provides 15 payments of $2,000 each one at the end of each of the 15 yeart Hound your answer to the nearest whole percentage rate (for example, 10.8% rounds to 1196). Practice Qu eBook Exercise A3-16 (Algorithmic) Pretent Values Use Present Value Tabies or your calculator to complete the requirements below: Ramon Company wigned notes to make the following two purchases on January 1, 2020 a, a new truck for $61,000, with payment deterred until December 31, 2021. The appropriate interest rate in compounded annual a small building from Wandrow Builders. The terms of the purchase require 575,000 payment at the end of each Quarte beginning March 31, 2020, and ending June 10, 2022. The appropriate interest rate is 20 per quarter Required: Round your answers to the nearest controunding is required 1. Complete the information reeded to prepare a cash flow diagrams for these two purchases an years per year 1/1/20 Amount of Payment or Deposit 12/31/21 ba Quarters per quarte Amount of Payment or Deposit 6/30/20 9/30/20 6/30/22 1/1/20 3/31/20 Previous Next 2. Prepare the entries to record these purchases in Ramon's journal OD II 3. Prepare the cash payment and interest expense entries for purchase bat March 11, 2020, andre 30, 2030. 1 an amount or does not receita March 31, 2020 June 30, 2020 4. Prepare the adjusting entry for purchase a at December 11, 2020 Dec 31, 2020 Previous Ned pendix 3 Practice Qui Exercise A3-19 (Algorithmic) Present Value Use Present this or your calculator to completarguruments below You have an opportunity to purchase government security that will pay 193,000 in 5 years Required Round your answers to the nearest.com. If rounding required. 1. Calculate what you would pay for the security of the appropriate interest discount) rate 6 comported annual . 2. Calculate what you would pay for the security of the rate interest (scount compoundedly 3. Calculate what you would pay for the security of the appropriate contre compounded manual
