Determining the present value and future value

Assignment Help Accounting Basics
Reference no: EM13954406

Present Value and Future Value

The following situations require the application of the time value of money:

1. On January 1, 2014, $16,000 is deposited. Assuming an 8% interest rate, calculate the amount accumulated on January 1, 2019, if interest is compounded (a) annually, (b) semi- annually, and (c) quarterly.

2. Assume that a deposit made on January 1, 2014, earns 8% interest. The deposit plus interest accumulated to $20,000 on January 1, 2019. How much was invested on January 1, 2014, if interest was compounded (a) annually, (b) semiannually, and (c) quarterly?

Reference no: EM13954406

Questions Cloud

How long ago were elements that formed our earth released : A threory of nuclear astrophysics is that all the heavy elements like uranium are formed in supernova explosions of massive stars, which immediately release the elements into space. If we assume that at the time of the explosion there were equal a..
How close would the alpha get to a copper nucleus : What is the distance of closest approach of an alpha particle of speed v= 1.70 x10^7 m/s to a gold nucleus of Z = 79? How close would the alpha get to a copper nucleus of Z = 29? Assume that the gold and copper nuclei remain at rest.
How much pb-210 must be loaded onto the column : How much Pb-210 is there per mole of U-238 in secular equilibrium with it's daughters? How much uranium oxide (UO2) must be mined to provide the Pb-210 for one elution column in part B?
Should the company make the investment in the equipment : Redo Edward Larne 's analysis assuming an inflation rate of 4 percent. Should the company make the investment in the equipment?
Determining the present value and future value : On January 1, 2014, $16,000 is deposited. Assuming an 8% interest rate, calculate the amount accumulated on January 1, 2019, if interest is compounded (a) annually, (b) semi- annually, and (c) quarterly.
Paper recommending a leadership theory : The organization you selected in Week 1 is designing training for all the managers at all levels. It wants to base the training on one leadership theory.
How many c-14 atoms did it contain in 2004 a.d. : A very old specimen of wood contains 10^12 atoms of carbon: How many C-14 atoms did it contain in the year of 9474 B.C.?
The federal, state, or local health care systems : Policies are constantly being reviewed and considered to help improve the federal, state, or local health care systems. Each one has the potential to affect each of us on a daily basis, so careful consideration must be given when policies are prop..
Do you believe in young marriage below 18 years old : Do you believe in young marriage below 18 years old?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd