Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The present value of $130,000 to be received in five years at an interest rate of 16%, compounded annually, is $61,893. Using a present value

The present value of $130,000 to be received in five years at an interest rate of 16%, compounded annually, is $61,893.

Using a present value table , calculate the present value of $130,000 for each of the following items (parts a-f) using these facts:

(Note: use the appropriate values[s] from the tables provided. Round your PV factors to 4 decimal places and final answers to the nearest whole dollar.)

A. Interest is compounded semiannually.

B. Interest is compounded quarterly.

C. A discount rate of 12% is used.

D. A discount rate of 20% is used.

E. The cash will be received in three years.

F. The cash will be received in seven years.

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

Intermediate Accounting

Authors: kieso, weygandt and warfield.

14th Edition

9780470587232, 470587288, 470587237, 978-0470587287

More Books

Students also viewed these Accounting questions

Question

Classify Various Phases of clinical Trials?

Answered: 1 week ago

Question

What is Foreign Policy?

Answered: 1 week ago