Question
In: Accounting
Complete the following using present value. (Use the Table provided.)
Complete the following using present value. (Use the Table provided.)
Solutions
Expert Solution
Calculation of present value of desired amount at the end of given period
Present value of desired amount at the end of given period = Maturity amount X Present value of $ 1 at 4% at the end of 24 periods
Present value of desired amount at the end of given period = $ 19,400 X 0.3901
= $ 7,567.94 or $ 7,568 (rounded off)
Therefore the present value of desired amount at the end of given period is $ 7,568.
Note: Since the rate of interest is compounded quarterly, the effective rate of interest to be used in present value calculation is divided by 4 (i.e. 16%/4 = 4%) and the number of years is multiplied by 4 (i.e. 6 x 4 = 24 periods).
ekkarill92 answered 1 year agoRelated Solutions
Complete the following using present value. (Use the Table provided.) (Do not round intermediate calculations. Round...
Complete the following using present value. (Use the Table
provided.) (Do not round intermediate calculations. Round
the "PV factor" to 4 decimal places and final answer to the nearest
cent.)
Amount desired at end of period
Length of time
Rate
Compounded
On PV Table
PV factor used
PV of amount desired at end of period
Period used
Rate used
$10,700
4 years
12%
Monthly
%
$
Complete the following using present value. (Use the Table provided.) (Do not round intermediate calculations. Round...
Complete the following using present value. (Use the Table
provided.) (Do not round intermediate calculations. Round the "PV
factor" to 4 decimal places and final answer to the nearest cent.)
Amount desired at end of period Length of time Rate Compounded On
PV Table PV factor used PV of amount desired at end of period
Period used Rate used $10,700 4 years 12% Monthly % $
Complete the following using the present value table 12.3.
Complete the following using the present value table
12.3.amount desired at end of period, length of time, rate,
compounded.On PV table 12.3period used, rate used, pv factor used, pv of amount desired at end
of period. 12-10. $20,000 20 years 8% Annually
The following present value factors are provided for use in this problem. Periods Present Value of...
The following present value factors are provided for use in this
problem.
Periods
Present Value
of $1 at 10%
Present Value of
an
Annuity of $1 at 10%
1
0.9091
0.9091
2
0.8264
1.7355
3
0.7513
2.4869
4
0.6830
3.1699
Cliff Co. wants to purchase a machine for $64,000, but needs to
earn an 10% return. The expected year-end net cash flows are
$25,000 in each of the first three years, and $29,000 in the fourth
year. What is the...
The following present value factors are provided for use in this problem. Periods Present value of...
The following present value factors are provided for use in this
problem. Periods Present value of $1 at 8% Present value of an
Annuity of $1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771
4 0.7350 3.3121 Xavier Co. wants to purchase a machine for $37,700
with a four-year life and a $1,100 salvage value. Xavier requires
an 8% return on investment. The expected year-end net cash flows
are $12,700 in each of the four years. What...
Complete the following using present value. (Use the Tableprovided.) (Do not round intermediate calculations. Round...
Complete the following using present value. (Use the Table
provided.) (Do not round intermediate calculations. Round
the "PV factor" to 4 decimal places and final answer to the nearest
cent.)Amount desired at end of periodLength of timeRateCompoundedOn PV Table 12.3PV factor usedPV of amount desired at end of periodPeriod usedRate used$18,1005 years24%Quarterly%$
Time Value of Money Complete the following exercise using MS Excel. Using the Present Value and...
Time Value of Money
Complete the following exercise using MS Excel. Using the
Present Value and Future Value Equations
4. If you invested $200 at 5%, how much would it be worth in 30
years?
5. How many years does it take to double your money if it is
invested at 6%?
6. If you invest $10,000 in a 20 year annuity paying 5%, what
would be the annual payment made to you?
7. If you have a student loan...
Using a Calculator and Present Value Table to Impute Interest Rate and Determine Present Value of...
Using a Calculator and Present Value Table to Impute
Interest Rate and Determine Present Value of Operating
Leases
AutoZone reports the following in its 2015 Form 10-K.
The Company leases some of its retail stores, distribution centers,
facilities, land and equipment, including vehicles. Other than
vehicle leases, most of the leases are operating leases...
The Company has a fleet of vehicles used for delivery to its
commercial customers and stores and travel for members of field
management. The majority of...
Present value For the case shown in the following table, calculate the present value of the...
Present value For the case shown in the following table,
calculate the present value of the cash flow, discounting at the
rate given,and assuming that the cash flow is received at the end
of the period noted. (Click on the icon here in order to copy the
contents of the data table below into a spreadsheet.)
Single cash flow- $148,000
discount rate- 13%
end of period (years) - 7
Valuation of assets Using the information provided in the following table, find the value of each...
Valuation of assets Using the information provided in the
following table, find the value of each asset:
Asset
End of Year
Amount
A
1
3000
18%
2
3000
3
3000
B
1
through &inf;
300
15%
C
1
0
16%
2
0
3
0
4
0
5
30000
D
1
through 5
1900
13%
6
8600
E
1
2000
13%
2
3000
3
5000
4
7000
5
4000
6
1000
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Formulating problem solutions to identify possible consumer complaints or issues with new products, do you think...
- 1.What process is used to ensure that evidence is kept secure and it's integrity is maintained...
- A 7450 kg rocket blasts off vertically from the launch pad with a constant upward acceleration...
- Write about the importance of top management support for successful IT projects in 300 – 350...
- , you will need to observe three separate groups (3-5 people) interacting. You can do this...
- Consider the titration of 100.0 mL of 0.016 M HOCl (Ka=3.5×10?8) with 0.0400 M NaOH. 1)...
- Apply Jean Piaget’s preoperational stage theory (symbolic thought, pretend play, and egocentrism) to early childhood development....
ADVERTISEMENT