Present value table-present value function

Assignment Help Finance Basics
Reference no: EM1328329

Using a present value table, your calculator, or a copmuter program present value function, answer the following questions:

A. What is the present value of nine annual cash payments of $8,000, to be paid at the end of each year using an interest rate of 6%?

B. What is the present value of $30,000 to be paid at the end of 20 years using an interest rate of 18%?

C. How much cash must be deposited in a savings account as a single amount in order to accumulate %600,000 at the end of 12 years, assuming that the account will earn 10% interest?

D. How much cash must be depositied in a savings account (as a single amount) in order to accumulate $100,000 at the end of seven years, assuming that the account will earn 12% interest?

E. Assume that a machine was purchased for $120,000. Cash of $40,000 was paid, and a four-year, 8% note payable was signed for the balance.

1. Write the journal entry, to show that purchase of the machine as described above.

2. How much is the equal annual payment of principal and interest due at the end of each year? Round your answer to the nearest $1.

3. What is the total amount of interest expense that will be reported over the life of the note? Round your answer to the nearest $1.

4. Write the journal entry to show the equal annual payments of principal and interest due at the end of each year.

Reference no: EM1328329

Questions Cloud

Application development and programming languages : Compare and contrast object-oriented languages (Java, C++, C#, etc.) to imperative languages (C, Pascal, etc.) in terms of:
Make a program that implements the use of an int array : build a Java application that implements the use of an int array. Use 'for' loops to iterate through the array using the array's length variable to stay within the array bounds
Equalizing perceived gap between employees and leaders : How to equalize the perceived gap between employees and leaders. Where possible, provide specific examples of such incidents where you saw the concept occur.
Utilize the information to predict the yearly number of vcr : Utilize the information to predict the yearly number of VCR's sold under the following conditions.
Present value table-present value function : by using a present value table, your calculator, or a computer program present value function, answer the following questions: Find out the present value of nine annual cash payments of $8,000, to be paid at the end of each year using interest rate ..
The innovation leader''s success : Don't you think that certain worst practices tend to derail the Innovation Leader's success as well as sabotage the project? How can they sail through in the event of such challenges?
Management of information systems can influence operations : Value creation through operations and technology - Show any equipment and technology needed to support operations and explain how the management of information systems can influence operations.
Explain e-business - k-mart, wal-mark, target : Explain E-business - K-Mart, Wal-Mark, Target and describe the marketing tools used in each of the three Web sites
Write a program takes two randomly generated parallel arrays : The random number generation for both arrays would be done in a method, both when the arrays are first populated and when they have to be repopulated.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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