Mr. Ridge wants to invest a certain sum of money at the end of each year for five years. The investment will earn 10% compounded annually. At the end of the fifth year, he will need a total of $30,000 accumulated. What is his approximate required annual investment?

Select one:

a. $5,348

b. $4,914

c. $3,726

d. $4,095

Question 7

Not yet answered

Points out of 2.00

Flag question

Question text

Portland Company wants to invest $1,000 on 1/1/15. The investment will earn 12% compounded semi-annually. What will be the approximate investment amount at 12/31/17?

Select one:

a. $1,340

b. $1,611

c. $1,419

d. $1,191

e. $1,405

Question 8

Not yet answered

Points out of 2.00

Flag question

Question text

Skagway Company purchases a machine on 1/1/17. The four Annual Payments will be $1,000 each January 1, beginning 1/1/17 through 1/1/20 inclusive. Interest Rate is 5% compounded annually. What is the approximate true cost of the machine?

Select one:

a. $3,546

b. $3,723

c. $3,329

d. $4,546

Question 9

Not yet answered

Points out of 2.00

Flag question

Question text

Hyde Park Company opens a savings account and agrees to deposit five $1,000 annual installments beginning one year from the account opening. The computation to determine the value of the account immediately after the fifth deposit is based on the

Select one:

a. Future Value of Annuity

b. Present Value of Annuity

c. Future Value of Annuity Due

d. Present Value of Annuity Due

Question 10

Not yet answered

Points out of 2.00

Flag question

Question text

Janice invests $100,000 in a savings account on 1/1/15. The account pays 5% annual interest through 12/31/18, and 10% thereafter. What is the approximate bank balance on 12/31/20?

Select one:

a. $147,077

b. $177,150

c. $154,081

d. $205,081

e. $140,073