1) An investment will pay $15,000 at the end of each year for eight years and a
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Question
1) An investment will pay $15,000 at the end of each year for eight years and a one-time payment of $120,000 at the end of the eighth year. (Use Table 1, Table 2)
Determine the present value of this investment using a 7 percent interest rate.(Round "PV Factors" to 4 decimal places. Round intermediate calculations and final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)
2) Kieso Company borrowed $600,000 on a 90-day note at 11 percent interest. The money was borrowed for 30 days in 2011 and 60 days in 2012; the note and interest were to be paid upon maturity in 2012. (Assume 360 days in a year.)
How much interest expense, if any, would be reported in 2011 and in 2012? (Do not round intermediate calculations. Omit the "$" sign in your response.)
3) As a result of a slowdown in operations, Global Stores is offering employees who have been terminated a severance package of $118,000 cash, another $129,000 to be paid in one year, and an annuity of $27,500 to be paid each year for six years beginning in one year. (Use Table 1, Table 2)
What is the present value of the package, assuming an interest rate of 5 percent? (Round "PV Factors" to 4 decimal places. Round intermediate calculations and final answers to the nearest whole dollar amount. Omit the "$" in your response.)
4) You want a retirement fund of $125,000 when you retire in six years. You are able to earn 8 percent on your investments. (Use Table 4)
How much should you deposit each year to build the retirement fund that you want? (Round "FV Factor" to 4 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)
1) An investment will pay $15,000 at the end of each year for eight years and a one-time payment of $120,000 at the end of the eighth year. (Use Table 1, Table 2)
An investment will pay $15,000 at the end of each year for eight years and a one-time payment of $120,000 at the end of the eighth year. (Use Table 1, Table 2) Determine the present value of this investment using a 7 percent interest rate.(Round "PV Factors" to 4 decimal places. Round intermediate calculations and final answers to the nearest whole dollar amount. Omit the "$" sign in your response.) Present value of investment $ Kieso Company borrowed $600,000 on a 90-day note at 11 percent interest. The money was borrowed for 30 days in 2011 and 60 days in 2012; the note and interest were to be paid upon maturity in 2012. (Assume 360 days in a year.) How much interest expense, if any, would be reported in 2011 and in 2012? (Do not round intermediate calculations. Omit the "$" sign in your response.) Interest expense 2011 $ 2012 $ As a result of a slowdown in operations, Global Stores is offering employees who have been terminated a severance package of $118,000 cash, another $129,000 to be paid in one year, and an annuity of $27,500 to be paid each year for six years beginning in one year. (Use Table 1, Table 2) What is the present value of the package, assuming an interest rate of 5 percent? (Round "PV Factors" to 4 decimal places. Round intermediate calculations and final answers to the nearest whole dollar amount. Omit the "$" in your response.) Present value $ You want a retirement fund of $125,000 when you retire in six years. You are able to earn 8 percent on your investments. (Use Table 4) How much should you deposit each year to build the retirement fund that you want? (Round "FV Factor" to 4 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Amount to be deposited $Explanation / Answer
1. 159410
2.
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