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MANAGERIAL ACCOUNTING HANDOUT PROBLEM 12 Name Section Problem (10 points) TIME VALUE OF MONEY PROBLEMS The following five situations require the use of future and
MANAGERIAL ACCOUNTING HANDOUT PROBLEM 12 Name Section Problem (10 points) TIME VALUE OF MONEY PROBLEMS The following five situations require the use of future and present values. Calculate the amounts requested, rounding all answers to the nearest dollar. (1) If you deposited S20,000 in a savings account at 5 percent interest, compounded quarterly, how much would be in the savings account at the end of 8 years? (2) How much cash would you have to deposit today in a savings account to have $125,000 at the end of 10 years, assuming an annual interest rate of 12 percent, compounded monthly? (3) If you deposited $800 per quarter, at the end of each quarter, in a retirement account eaming 8 percent interest per year, how much would be in the savings account at the end of 20 years? (4) How much cash would you have to deposit at the end of each year to have $250,000 at the end of 10 years assuming an interest rate of 9 percent per year? You have just purchased a new auto that cost $30,000. You paid $3,000 down and financed the balance over 72 months at 4% interest per year, compounded monthly, with payments made at the beginning of each month. How much will your monthly payment be
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