The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1,...

The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1. John Jamison wants to accumulate $62,154 for a down payment on a small business. He will invest $34,000 today in a bank account paying 9% interest compounded annually. Approximately how long will it take John to reach his goal?
2. The Jasmine Tea Company purchased merchandise from a supplier for $31,453. Payment was a noninterest-bearing note requiring Jasmine to make six annual payments of $6,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement?
3. Sam Robinson borrowed $13,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from the date of the loan. Sam’s friend would like to be reimbursed for the time value of money at a 10% annual rate. What is the annual payment Sam must make to pay back his friend?

Solutions

Expert Solution

Please Refer to the answers below:

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1,...

The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. John Jamison wants to accumulate $80,170 for a down payment on a small business. He will invest $34,000 today in a bank account paying 10% interest compounded annually. Approximately how long will it take John to reach his goal? 2. The Jasmine Tea Company purchased merchandise...

The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1,...

3. Is it really a good investment? Note: In these situations, PV and FV will be...

3. Is it really a good investment? Note: In these situations, PV and FV will be given, as well as the investment timeframe (NPER); use Excel’s =RATE formula to calculate the annual rate of return. Input PV as a negative number in order for Excel’s RATE function to operate correctly. The PBS TV program Antiques Roadshow features expert appraisals of art, furniture, pottery, and other such antiques. Often, people buy antiques speculatively, hoping their value will rise and they will...

1.a Explain the formula PV= FV/ (1 + r) 1. b Explain the formula FV =...

1.a Explain the formula PV= FV/ (1 + r) 1. b Explain the formula FV = PV ( 1+r) 1. c What is meant by the expression COMPOUNDING? 1. d Explain the 5 unknowns (N I/Y PMT PV FV) 1. e If you received $1,000 a year on Dec 31 for the next five years, how much would it be the PRESENT VALUE at a 6% discount rate? 1. f If you invested $ 2,000 at 8%, what is the...

Hello, I am confused on the difference between PV and PV (annuity), FV and FV(annuity). I...

Hello, I am confused on the difference between PV and PV (annuity), FV and FV(annuity). I do not know when to use one formula over the other. Is there a way you can simplify when to use each formula? The key differences? Key phrases or words I should associate them with? An easy way to remember how each formula is used? I am confused on TVM equations. For example) #1. You buy a property for $100,000 and you are offered...

Provided are links to the present and future value tables: (PV of $1, FV of $1,...

Provided are links to the present and future value tables: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) a. How much would you have to deposit today if you wanted to have $43,000 in four years? Annual interest rate is 9%. b. Assume that you are saving up for a trip around the world when you graduate in three years....

Provided are links to the present and future value tables: (PV of $1, FV of $1,...

Provided are links to the present and future value tables: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) a. How much would you have to deposit today if you wanted to have $40,000 in five years? Annual interest rate is 8%. b. Assume that you are saving up for a trip around the world when you graduate in three years....

Provided are links to the present and future value tables: (PV of $1, FV of $1,...

Provided are links to the present and future value tables: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) a. How much would you have to deposit today if you wanted to have $48,000 in four years? Annual interest rate is 9%. b. Assume that you are saving up for a trip around the world when you graduate in two years....

Present and future value tables of 1 at 11% are presented below. PV of $1 FV...

Present and future value tables of 1 at 11% are presented below. PV of $1 FV of $1 PVA of $1 FVA of $1 1 0.90090 1.11000 0.90090 1.0000 2 0.81162 1.23210 1.71252 2.1100 3 0.73119 1.36763 2.44371 3.3421 4 0.65873 1.51807 3.10245 4.7097 5 0.59345 1.68506 3.69590 6.2278 6 0.53464 1.87041 4.23054 7.9129 Polo Publishers purchased a multi-color offset press with terms of $50,000 down and a noninterest-bearing note requiring payment of $30,000 at the end of each year...

Present and future value tables of $1 at 11% are presented below. PV of $1 FV...

Present and future value tables of $1 at 11% are presented below. PV of $1 FV of $1 PVA of $1 FVA of $1 1 0.90090 1.11000 0.90090 1.0000 2 0.81162 1.23210 1.71252 2.1100 3 0.73119 1.36763 2.44371 3.3421 4 0.65873 1.51807 3.10245 4.7097 5 0.59345 1.68506 3.69590 6.2278 6 0.53464 1.87041 4.23054 7.9129 Spielberg Inc. signed a $250,000 noninterest-bearing note due in two years from a production company eager to do business. Comparable borrowings have carried an 11% interest...

Subjects