What are the present and future values of the investment

Assignment Help Financial Accounting
Reference no: EM132904699

Problem 1: If $100 is deposited in a bank with an interest rate of 8%, and the same amount of money is taken out each year for other investments, what is the cash flow each year?

a) $100

b) $108

c) $8

d) $92

Problem 2: Suppose you invest $500 with an annual interest rate of 3%; what are the present and future values of the investment after one year?

a) Present value is $15 and future value is $500

b) Present value is $500 and future value is $150

c) Present value is $15 and future value is $515

d) Present value is $500 and future value is $515

Reference no: EM132904699

Questions Cloud

Which would be used for a project that has non-normal : Assume that the present value of the investment is 1000 and future value is 1403 after five years. What is the annual interest rate (%i)?
Measure accountability for adherence to security policies : Are there other ways to measure accountability for adherence to security policies? If yes, provide an example.
Determine relationship between shareholders and stakeholders : Determine relationship between shareholders and stakeholders. Which of the arrangements for a Rs.1,000 CD yields the largest terminal (future) value?
Determine the owner equity figure at june : Using the accounting equation: A = L + P, determine the owner's equity figure at 30 June 2010. Explain what caused the changes to the owner's equity figure
What are the present and future values of the investment : Suppose you invest $500 with an annual interest rate of 3%; what are the present and future values of the investment after one year?
What amount will be included as an investment : What amount will be included as an investment in Venus Corporation on the consolidated balance sheet immediately after the acquisition
Idealism refers to behavior : Idealism refers to behavior or thought that is based on a conception of things as they should be or as one would like them to be.
How much is the car that can afford : Maximum amount you can pay is $550 per month for 4 years, where the payment is scheduled at the end of the month. How much is the car that you can afford?
Concepts approaches to physical security : Discuss the theory and concepts Approaches to Physical Security. What are two pros to using IDaaS?

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much will be in a high-yield account at national bank

How much will be in a high-yield account at the National Bank of Arizona 12 years from now if you deposit $5000 now and $7000 fi ve years from now? The account earns interest at a rate of 8% per year, compounded quarterly (draw the cash flow diagram)

  Calculate the amount of net income

ABC Company began operations in June, 2017 by selling common stock to owners in exchange for $70,000 cash. During 2017, ABC Company entered into the following transactions: Calculate the amount of net income that ABC Company would report in its 2017 ..

  What amount the land should be carried

Julia Corp. received $36,000 from the sale of scrap when an existing building on the site was razed. The land should be carried at what amount?

  Determine the direct materials purchases budget

If paper costs $0.15 per square yard, determine the direct materials purchases budget for 20Y6. If required, round your final answer to the nearest dollar.

  Find what is the additional year-three cash flow

Find What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital - also called terminal value)?

  Calculate the companys dividend paid per share

Calculate the company's dividend paid per share of common stock. What was the dividend payout? 9% bonds payable $40,000

  What option asset should sc company recognize on february

What option asset should SC Company recognize on February 1, 2019? On February 1, 2019, SC Company enters into a contract with San Miguel Corp.

  What amount should paper report as net cash provided

What amount should Paper report as net cash provided by operating activities in its Statement of Cash Flows for the year?

  Create journal entries necessary to account for transaction

Applications are received for 108 million shares during July 2018. Provide the journal entries necessary to account for the above transactions and events.

  Riot acts owners equity at the end of year

At the beginning of 20X4, owners' equity for Riot Act Ltd. was $11,000. Riot Act's profit after tax for 2004 was $3,000, out of which they paid a dividend of $1, 800. During 20X4 Riot Act also issued $2,000 worth of shares. Riot Act's owners' equity ..

  Comparing its performance with that of closest competitors

Which of the following determines a company's competitive advantage by comparing its performance with that of its closest competitors?

  Make the journal entries for issuance of preferred stock

Make the journal entries for Issuance of preferred stock for land, Issuance of common stock for cash and Purchase of common treasury stock for cash

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