8-13 The following three mutually exclusive alternatives have no salvage value after 5 years. Construct a choice table for interest rates from 0% to 100%.
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- To accumulate $5,500 in 8 years, a deposit of X is to be made today and a second deposit of X is to be made 3 years from now. The effective annual interest rate is 2%. Which of the following is an incorrect equation of value for this problem. A. X(1.02)^8 + X(1.02)^5 = 5,500, as of time 8. B. X + X(1.02)^−3=5500(1.02)^−8, as of time 0. C. X(1+v^3) = 5500v^8, as of time 0. D. X + X(1.02)^3 = 5500(1.02)^8, as of time 8. E. X + X(1.02)^3 = 5500v^5, as of time 3.Exercise 5-5 (Algo) Solving for unknowns; single amounts [LO5-4] For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (/= interest rate, and n=number of years) (EV 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. Round your final answers to nearest whole dollar amount.) 1 2 3 4 5 Present Value Future Value 39,593 S 78,000 92,000 29,002 $ $ $ $ S $ 28,012 19,084 S 51,349 $ 1 12.0% 49,500 10.0% 195,000 12.0% n 6 15 14 10What is the future value of GH¢ 1,200 a year for 40 years at 8 percent interest? Assume annual compounding. #randomized O A. GH¢ 301,115 B. GH¢ 306,492 O C. GH¢ 310,868 OD. GH¢ 342,908 O E. GH¢ 347,267
- 4. The interest rate on a savingsaccount is 3% . You deposit£100 today, then £100 at theend of the first year, and £100each year until the end of year10. You withdraw x at the end ofyear 11, and then x each yearuntil the end of year 15 when thefinal withdrawal is made. Whatvalue of x will empty the accountafter the final withdrawal? A: 250B: 260 C: 270 D: 280Solve for the unknown number of years in each of the following: (Do not round intermediate calculations and round your final answers to 2 decimal places.) Present Value $ 610 860 18,900 22,000 Years Interest Rate 7% 10 17 15 Future Value $ 1,439 1,871 294,715 435,2583 O Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $400 per year for 16 years at 6%. $ 2,790.13 b. $200 per year for 8 years at 3%. $ 1,768.79 c. $900 per year for 8 years at 0%. 7,200 d. Rework parts a, b, and c assuming they are annuities due. Future value of $400 per year for 16 years at 6%: $ Future value of $200 per year for 8 years at 3%: $ Future value of $900 per year for 8 years at 0%: $ $ 2,962.29 1,852.24 7,200
- Exercise 5-7 (Algo) Solving for unknowns; single amounts [LO5-4] For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (/= interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. 5. Present Value Future Value 48,000 $ 24,837 $ $ 28,599 $ 61,000 $ 12,569 $ 42,000 $ 47,653 14,178 $ $ 120,000 28,529 $ i 10% 5% X 9% 4% X 6% n 9 13 14 12 12Assume that you are preparing an amortization table for a three-year note with a stated and yield rate of 12% and 10%, respectively. The amount for cell C4 is computed by a. E3 x 10% b. E3 x 12% c. E3 x 5% d. E3 x 6%In 3 years you are to receive 5,000. If the interest rate were to suddenly increase, the present value of that future amount to you would A. fall B. Rise C. remain unchanged D. cannot be determined without more information
- DIRECTION: ENCIRCLE THE BEST ANSWER. 4.) This refers to the interest rate per conversion period A Compound interest C Rate of interest B Periodic rate D. Simple interest 5) Thuis nefers to the amount paid or eames for the use of money A Conversion period C. Principal B. Interest D Rate 6) 30 months is equivalent to A 25 years B 2.75 years C 3 years D 3.25 years 1) How much is the simple interest on this financial transaction. P = .000 00. - * 6°.. and / 2 years AP120.00 B P600.00 CP1.300 00 D P6.000.00 6) What is the total number of conversion periods when a certain amount is borrowed are 10°. coupomded mouthly for 5 years? A.12 B 50 C 24 D. 60 How unch was the interest if Sophia borrowed P45.000 90 and paid a total of PS5.500.00 ar the end of the tem A PI0.500 00 CP11.500.00 B P45,000.00 D. P100.500.00 10.) What is the interest rate per conversion period if 125.900 00 was tvested at 3.4. compounded oruually for 4 years and 6 months 0033 C 0.110 B 0.330 D. 0 160 11. Jolu borowed…The present value of 6,500 at 3% interest rate after 5 years is a. 4313 b. 4315 C. None of them с. d. 4,000Exercise 5-7 (Algo) Solving for unknowns; single amounts [LO5-4] For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (/* interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of S1, PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) 1. Present Value Future Value 36.738 $ 54,000 17,127 $ 68,000 43,500 10,117 $ 42,558 $ 135,000 10,378 $ $ 2 3. $ 4. $ 5. $ 8% 20% 7% n 8 16 15 9