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You want to invest $20,000 today to accumulate $32,000 for graduate school. If you can invest at an interest rate of 10% compounded annually. To
You want to invest $20,000 today to accumulate $32,000 for graduate school. If you can invest at an interest rate of 10% compounded annually. To find how many years will it take to accumulate the required amount, you would search the 10% column in the: O A) present value of $1 table, for the factor closest to 1.6. O B) future value of $1 table, for the factor closest to 1.6. present value of $1 table, for the factor closest to 0.625. D) present value of an ordinary annuity of $1 table, for the factor closest to 1.6. Assume a contract for the sale of goods specifies that cash is collected 19 months prior to delivery of a product. The seller is likely to do which of the following with respect to the time value of money? OA) Recognize interest expense upon receipt of payment. OB) Debit deferred revenue when delivery occurs. O C) Recognize sales revenue for an amount that is less than the cash received. OD Debit notes receivable upon receipt of payment. An uncle asks to borrow $500 today and promises to repay you $1,210 two years from now. To find the annual interest rate you would be agreeing to, you would search the second row in the: (PV of $1) A) present value of an ordinary annuity of $1 table, for the factor closest to 1.21. B) present value of $1 table, for the factor closest to 0.82645. O present value of $1 table, for the factor closest to 1.21. D) future value of $1 table, for the factor closest to 1.21
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