If $8,000 are invested today and $18,000 in two years, a metal plating company can increase its
Question:
If $8,000 are invested today and $18,000 in two years, a metal plating company can increase its revenue from the 3th to the 9th period. With an interest rate of 14% annually. What is the additional fixed income required from the 3th to the 9th years in order to recover the investment?
Q2. What will be the accumulated amount when the 10th deposit is made for an account that pays 6% annually, if 10 increasing deposits are made with a 9% annual increase starting from the second payment? The first payment in year one is $20,000.
Q3. A company will need $150,000 in 5 years, so the company plans to make annual deposits starting in the first year and ending in the 5th year, each deposit will be 10% higher than the previous one. What will be the amount of the first deposit if the interest rate is 5% per year?
Q4. If $10,000 are deposited today, $15,000 in three years and $20,000 every year from years 6 to 12. Calculate the future value of the account the following year after making the last deposit, with an interest rate of 7% annual compounded each year.
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella