Robertson Company receives a $78,900, 4-year note bearing interest of 9% (paid a
ID: 2426739 • Letter: R
Question
Robertson Company receives a $78,900, 4-year note bearing interest of 9% (paid annually) from a customer at a time when the discount rate is 8%.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
What is the present value of the note received by Robertson? (Round answer to 2 decimal places, e.g. 25.25.)Dayton Company is considering investing in an annuity contract that will return $31,700 annually at the end of each year for 15 years. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Dayton Company pay for this investment if it earns a 10% return? (Round answer to 2 decimal places, e.g. 25.25.)
Nolasko Enterprises earns 4% on an investment that pays back $95,400 at the end of each of the next 4 years.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
What is the amount Nolasko Enterprises invested to earn the 4% rate of return? (Round answer to 2 decimal places, e.g. 25.25.)
Nolasko Enterprises invested
Nolasko Enterprises invested
$
Explanation / Answer
Present value of the note received by Robertson = interest * cumulative present value factor + principal amount
=7101 * 3.31213 + 78900 * 0.73503
= 81513
Dayton Company
= annuity payment * cumulative present value factor (15 years, r=10%)
= $31700 * 7.60608
= 241112.7
Nolasko Enterprises invested to earn the 4% rate of return = $378000 /3.629895
= 104135.2
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.