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Future Values and Long-Term Investments Use Future Value of a Single Amount, Present Value of a Single Amount, Future Value of an Annuity and present
Future Values and Long-Term Investments Use Future Value of a Single Amount, Present Value of a Single Amount, Future Value of an Annuity and present Value of an Annuity, or your calculator to complete the requirement below. Round factors to five decimal places. Portman Corporation engaged in the following transactions during 2024: a. On January 1, 2024. Portman deposited $12,730 in a certificate of deposit paying 6% interest compounded semiannually (3% per 6-month period). The certificate will mature on December 31, 2027 b. On January 1, 2024, Portman established an account with Lee County Bank. Portman will make quarterly payments of $2,500 to Lee beginning on March 31, 2024, and ending on December 31, 2025. Lee guarantees an interest rate of 8% compounded quarterly (2% per 3-month period). Required: 1. Complete the information needed to prepare a cash flow diagram for each of these two investments 3 x semi-annual periods 3 v 5 per 5-month period an- Amount of Payment or Deposit 1/1/24 12,730 12/31/27 Unknown future value amount b. n 8 quarters 2% per quarter Amount of Payment or Deposit Amount of Payment or Deposit 1/1/24 12/31/27 12,730 Unknown future value amount b. - 8 quarters % per quarter 2 Amount of Payment or Deposit 6/30/24 9/30/24 3/31/24 12/31/24 12/31/25 Unknown future value amount 2. Calculate the amount to which each of these investments will accumulate at maturity. Round your answers to the nearest cent. Future value b. Future value of annuity
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