The following situations involve the application of the time value of money concept: 1. Janelle Carter deposited
Question:
1. Janelle Carter deposited $9,750 in the bank on January 1, 1995, at an interest rate of 12% compounded annually. How much has accumulated in the account by January 1, 2012?
2. Mike Smith deposited $21,600 in the bank on January 1, 2002. On January 2, 2012, this deposit has accumulated to $42,486. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit?
3. Lee Spony made a deposit in the bank on January 1, 2005. The bank pays interest at the rate of 8% compounded annually. On January 1, 2012, the deposit has accumulated to $15,000. How much money did Lee originally deposit on January 1, 2005?
4. Nancy Holmes deposited $5,800 in the bank on January 1 a few years ago. The bank pays an interest rate of 10% compounded annually, and the deposit is now worth $15,026. How many years has the deposit been invested?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
1 9750 686604 future value of 1 for n 17 i 12 66944 2 42...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
65+ Reviews
86+ Question Solved
Related Book For 
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton
Question Posted:
