a newconnect Connect 6 inal exam 8-10 PM Saved Present and future value tables o

Question

a newconnect Connect 6 inal exam 8-10 PM Saved Present and future value tables of 1 at 11% are presented below. 18 PV of $1 0.90090 0.81162 0.73119 0.65873 0.59345 0.53464 FV of $1 1.11000 1.23210 1.36763 1.51807 168506 1.87041 PVA of $1 0.90090 1.71252 2.44371 3.10245 3.69590 4.23054 FVA of $1 10000 2.1100 3.3421 4.7097 6.2278 7.9129 01.57.48 6 Polo Publishers purchased a multi-color offset press with terms of $105.000 down and a noninterest-bearing note requiring payment of $80,000 at the end of each year for six years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at Multiple Choice $443.443 $185,000.

Explanation / Answer

Answer is $ 443443 Explanation Year Cash paid PVF @ 11% Present value 1 80000 0.900901 72072.07 2 80000 0.811622 64929.79 3 80000 0.731191 58495.31 4 80000 0.658731 52698.48 5 80000 0.593451 47476.11 6 80000 0.534641 42771.27 Present value of payments 338443 Add; Down payment 105000 Cost of Assets 443443

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