Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help as soon as possible Greenwell Farm Equipment sells a tractor to Farmer for $50,000 on January 1, 2016. The tractor is delivered that

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedplease help as soon as possible

Greenwell Farm Equipment sells a tractor to Farmer for $50,000 on January 1, 2016. The tractor is delivered that day. Greenwell agrees that Farmer may delay the payment for 2 years. The market rate of interest is 8%. How much interest revenue will Greenwell report over the life of this contract? You need to choose only one of the tables below to calculate the interest revenue. Present Value of $1 PV = FV X Factor Periods 4% 5% 6% 8% 9% 2 0.92456 0.90703 0.89000 0.85734 0.84168 5 0.82193 0.78353 0.74726 0.68058 0.64993 6 0.79031 0.74622 0.70496 0.63017 0.59627 7 0.75992 0.71068 0.66506 0.58349 0.54703 101 0.67556 0.61391 0.55839 0.46319 0.42241 11 0.64958 0.58468 0.52679 0.42888 0.38753 12 0.62460 0.55684 0.49697 0.39711 0.35553 13 0.60057 0.53032 0.46884 0.36770 0.32618 14 0.57748 0.50507 0.44230 0.34046 0.29925 15 0.55526 0.48102 0.41727 0.31524 0.27454 161 0.53391 0.45811 0.39365 0.29189 0.25187 17 0.51337 0.43630 0.37136 0.27027 0.23107 10% 12% 0.82645 0.79719 0.62092 0.56743 0.56447 0.50663 0.51316 0.45235 0.38554 0.32197 0.35049 0.28748 0.31863 0.25668 0.28966 0.22917 0.26333 0.20462 0.23939 0.18270 0.21763 0.16312 0.19784 0.14564 Present Value of $1 PV = FV X Factor Periods 4% 5% 6% 8% 9% 10% 12% 2 0.92456 0.90703 0.89000 0.85734 0.84168 0.82645 0.79719 5 0.82193 0.78353 0.74726 0.68058 0.64993 0.62092 0.56743 6 0.79031 0.74622 0.70496 0.63017 0.596270.56447 0.50663 7 0.75992 0.71068 0.66506 0.58349 0.54703 0.51316 0.45235 10 0.67556 0.61391 0.55839 0.46319 0.42241 0.38554 0.32197 11 0.64958 0.58468 0.52679 0.42888 0.38753 0.35049 0.28748 12 0.62460 0.55684 0.49697 0.39711 0.35553 0.31863 0.25668 13 0.60057 0.53032 0.46884 0.36770 0.32618 0.289660.22917 14 0.57748 0.50507 0.44230 0.34046 0.29925 0.26333 0.20462 15 0.55526 0.48102 0.41727 0.31524 0.27454 0.23939 0.18270 16 0.53391 0.45811 0.39365 0.29189 0.25187 0.21763 0.16312 17 0.51337 0.43630 0.37136 0.27027 0.231070.19784 0.14564 18 0.49363 0.41552 0.35034 0.25025 0.21199 0.17986 0.13004 19 0.47464 0.39573 0.33051 0.23171 0.19449 0.16351 0.11611 20 0.45639 0.37689 0.31180 0.21455 0.17843 0.14864 0.10367 Present Value of an Ordinary Annuity PV = PMT X Factor Periods 4% 5% 6% 8% 2 1.88609 1.85941 1.83339 1.78326 5 4.45182 4.32948 4.21236 3.99271 65.24214 5.07569 4.91732 4.62288 7 6.00205 5.78637 5.58238 5.20637 10 8.11090 7.72173 7.36009 6.71008 11 8.76048 8.30641 7.88687 7.13896 12 9.38507 8.86325 8.38384 7.53608 13 9.98565 9.39357 8.85268 7.90378 14 10.56312 9.89864 9.29498 8.24424 15 11.11839 10.37966 9.71225 8.55948 16 11.65230 10.83777 10.10590 8.85137 17 12.16567 11.27407 10.47726 9.12164 18 12.65930 11.68959 10.82760 9.37189 19 13.1339412.08532 11.15812 9.60360 20 13.59033 12.46221 11.46992 9.81815 9% 1.75911 3.88965 4.48592 5.03295 6.41766 6.80519 7.16073 7.48690 7.78615 8.06069 8.31256 8.54363 8.75563 8.95011 9.12855 10% 1.73554 3.79079 4.35526 4.86842 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.36492 8.51356 12% 1.69005 3.60478 4.11141 4.56376 5.65022 5.93770 6.19437 6.42355 6.62817 6.81086 6.97399 7.11963 7.24967 7.36578 7.46944 10 8.11090 7.72173 7.36009 11 8.76048 8.30641 7.88687 12 9.38507 8.86325 8.38384 13 9.98565 9.39357 8.85268 14 10.56312 9.89864 9.29498 15 11.11839 10.37966 9.71225 16 11.65230 10.83777 10.10590 17 12.16567 11.27407 10.47726 18 12.65930 11.68959 10.82760 19 13.13394 12.08532 11.15812 20 13.59033 12.46221 11.46992 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 6.41766 6.80519 7.16073 7.48690 7.78615 8.06069 8.31256 8.54363 8.75563 8.95011 9.12855 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.36492 8.51356 5.65022 5.93770 6.19437 6.42355 6.62817 6.81086 6.97399 7.11963 7.24967 7.36578 7.46944 0 $7,133 0 $42,867 0 $10,000 0 $8,320

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions