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Using the present value formula and calculator

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Reference no: EM132002046

1. Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.)

Achieve $225,500 at 8.55% compounded continuously for 8 years, 145 days.

2. The “Big-Deal” Company has purchased new furniture for their offices at a retail price of $100,000. An additional $20,000 has been charged for insurance, shipping and handling. The company expects to use the furniture for 10 years (useful life = 10 years) and then sell it at a salvage (market) value of $10,000.

Use Sl method for depreciation to answer these questions.

at is the depreciation during second year and book value of the asset at the end of the first year.

a. d2=15,000 and BV1=21,000

b. d2=12,000 and BV2=121,000

c. d2=11,000 and BV1=109,000

d. d2=18,000 and BV2=41,000

Reference no: EM132002046

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