TIME VALUE OF MONEY Assume you put $5,000 into an investment fund today that will pay 4% compounded annually for 10 years. What will the fund be worth in 10 years? How much of this is interest? It is the beginning of 2041 and it's time to renew your security alarm service! The alarm company offers two plans for three years of coverage. Under the first plan, $1,000 annual payments are due at the end of 2041, 2042 and 20Y3. Under the second plan a single payment of $2,500 is due at the beginning of 2041 (now). The interest rate is 8%. What is the better deal for you? Assume you purchased a car that cost $14,000. The car dealership is offering financing at 5% per year. How much is your annual payment assuming you financed the car for 5 years? How much did the car actually cost? INVENTORY At the beginning of the season on April 1, Green Acres Golf Course completed a physical inventory count and found that $3,000 of inventory was still on hand. Throughout the month of April, Green Acres had the following purchase transactions occur to restock their club house merchandise. Determine the cost of goods available for sale assuming a perpetual inventory system. Purchased 10 golf bags for $50 each from a national vendor. Purchased 200 boxes of 12-pack golf balls printed with the Green Acres Golf Course logo for $10 per box. Purchased 3 sets of golf clubs that cost $150, $200 and $250 respectively. Returned 15 boxes of golf balls due to a logo printing defect. Purchased 55 personalized polos for $20 per shirt. When the shirts arrived, Green Acres did not like the shirt color chosen and negotiated a $2 per shirt allowance with the supplier. Cost of Goods Available for Sale