Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help with E6-5 11.3 (a) What is the future value of $7,000 at the end of 5 periods at 5% compounded inte (b) What

image text in transcribed

need help with E6-5

11.3 (a) What is the future value of $7,000 at the end of 5 periods at 5% compounded inte (b) What is the present value of $7,000 due 8 periods hence, discounted at 62 ? (c) What is the future value of 15 periodic payments of $7,000 each made at the beach period and compounded at 102 (d) What is the present value of $7,000 to be received at the end of each of 20 tedats compound interest E6-4 (L03,4) (Computation of Future Values and Present Values! Using t questions. (Each case is independent of the others). e interest table, answer the following (a) What is the future value of 20 periodic payments of $4,000 each made at the beginning of each period and compounded at 82 (b) What is the present value of $2,500 to be received at the beginning of each ot 30 periods, discounted at 5% compound interest (c) What is the future value of 15 deposits of $2,000 each made at the beginning of each period and compounded at 102 (Future value as of the end of the fifteenth period.) (d) What is the present value of six receipts of $1,000 each received at the beginning of each period, discounted at com- pounded interest? E6-5 (L04) (Computation of Present Value) Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods. (a) $30,000 receivable at the end of each period for 8 periods compounded at 12%. (b) $30,000 payments to be made at the end of each period for 16 periods at 9%. (c) $30,000 payable at the end of the seventh, eighth, ninth, and tenth periods at 12%. E6-6 (L02,3,4) (Future Value and Present Value Problems) Presented below are three unrelated situations. (a) Dwayne Wade Company recently signed a lease for a new office building, for a lease period of 10 years. Under the lease agreement, a security deposit of $12,000 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 5% per year. What amount will the company receive at the time the lease expires? (b) Serena Williams Corporation, having recently issued a $20 million, 15-year bond issue, is committed to make annual sinking fund deposits of $600,000. The deposits are made on the last day of each year and vield a return of 10%. Will the fund at the end of 15 years be sufficient to retire the bonds? If not, what will the deficiency be? c) Under the terms of his salary agreement, president Rex Walters has an option of receiving either an immediate bonus Ignoring tay considerations and assuming a relevant

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internal Auditor At Work A Practical Guide To Everyday Challenges

Authors: K. H. Spencer Pickett

1st Edition

0471458392, 978-0471458395

More Books

Students also viewed these Accounting questions