Question
In: Accounting
2- Kevin plans to buy a smart TV for $1,600 after 3 years. If the interest...
2- Kevin plans to buy a smart TV for $1,600 after 3 years. If the interest rate is 8%, how much money should Kevin set aside today for the purchase? A) Using the formula, compute the amount. B) Using the tables, compute the amount. C) Using the same facts, compute the answer using the tables assuming that the interest is compounded quarterly. Please show your work in all cases.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
A fire department plans to buy a truck in 3 years to, this trick would cost...
A fire department plans to buy a truck in 3 years to, this trick
would cost $ 625,000, but the cost is increasing at the rate of 4%
annually. Find the semiannual payment needed to accumulate funds to
buy the truck if money earns 16% compounded semiannually.
Mr. Smart borrowed $25,000 from a bank on annuity for 2 years at 10% annual interest...
Mr. Smart borrowed $25,000 from a bank on annuity for 2 years
at 10% annual interest compounded and payable semiannually (every
six months). Calculate the semiannual payments and provide a table
that shows periodic payment, balance, interest payment, payment to
principal for each payment as well as total amount which Mr. Smart
will pay to the bank for the borrowed amount including interest and
principal payments in the entire period of two years.
How much money is required now to provide an income of $1,600 per month for six years if the money earns interest at 6% p.a. compounding monthly and the first $1,600 payment is payable 2 years from today?
How much money is required now to provide an income of $1,600 per
month for six years if the money earns interest at 6% p.a.
compounding monthly and the first $1,600 payment is payable 2 years
from today?
1.) What is the future value after 3 years of the cashflow below if the interest...
1.) What is the future value after 3 years of the cashflow below
if the interest rate is 4%?
YR: 1 2 3
CF: 500 400 300
2.) What is the present value of the cash flows above if the
discount rate is 12%?
Please show work + formulas used. Studying for an exam.
A person bought a TV on credit for $ 4,000, the interest charged is 3% per...
A person bought a TV on credit for $ 4,000, the interest charged
is 3% per month. During the first six months she was able to pay $
250 each month, but from the seventh month her payment increased by
$ 50 per month, that is, she paid $ 300 at the end of the seventh
month, $ 350 at the end of the eighth month, etc.
When did she finished paying the debt? how much did she paid in...
Account Balance after 3 years
You deposit $1000 into a saving account with 9% interest per annum. Assuming no transactions on the account, determine the account balance after 3 years.
Journal Summary on any article from past 3 years on Smart Factories.
Journal Summary on any article from past 3 years on Smart
Factories.
Tony’s Hot Dog Stand 1. 1,600 people per day pass stand; 1 of 4 buy 2....
Tony’s Hot Dog Stand
1. 1,600 people per day pass stand; 1 of 4
buy
2. ¼ buy=conversion rate=25%
3. Cogs=$.25
4. Avg. customer buys 2 tube steaks @$1
each
5. Cost of tube steaks - $.25 each
6. Customer buys 1x/day
7. Fixed Costs - $36K Tony salary; $12K
depreciation ((he bought the stand for $60,000/5=12,000) So the
total fixed cost is $48,000)
8. Business Days – 250 per year
9. Sales (Revenue) is $200,000
10. Variable Cost is...
7. David Puddy is car shopping and plans to buy a 2019 Toyota Corolla. After making...
7. David Puddy is car shopping and plans to buy a 2019 Toyota
Corolla. After making a down payment, David plans to borrow $21,000
from his bank. The bank offers 4-year (48-month) car loans. David’s
budget allows him to pay $500 monthly (at the end of each month)
for the car. What is the maximum monthly interest rate that David
can accept to keep his monthly payments to no more than $500 per
month?
A. 6.70%
B. 5.56%
C. 0.56%...
What’s the future valueof $100 after 3 years if the appropriate interest rate is 8%, compounded annually?
What’s the future valueof $100 after 3 years if the appropriate interest rate is
8%, compounded annually? NPERRATEPVPMTFV
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