Question 1

The process of determining the present value is referred to as _________________ the future amount.

Accepted Answer

The answer of The process of determining the present value...

Question 2

Jose Reynolds deposited $10000 in an account paying interest of 4% compounded annually. What amount will be in the account at the end of 4 years?

Accepted Answer

Use Table 1.
$10000

Question 3

The future value of a single amount is the value at a future date of a given amount invested now assuming compound interest.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not necessary to know in computing the future value of an annuity?

Accepted Answer

A)  Amount of the periodic payments 
B)  Interest rate 
C)  Number of compounding periods 
D)  Year the payments begin 
A)  Amount of the periodic payments 
B)  Interest rate 
C)  Number of compounding periods 
D)  Year the payments begin

Question 5

Peter Johnson invests $35516.80 now for a series of $5000 annual returns beginning one year from now. Peter will earn 10% on the initial investment. How many annual payments will Peter receive?

Accepted Answer

A)  10 
B)  12 
C)  13 
D)  15 
A)  10 
B)  12 
C)  13 
D)  15

Question 6

The present value of $10000 to be received in 5 years will be smaller if the discount rate is

Accepted Answer

A)  increased. 
B)  decreased. 
C)  not changed. 
D)  equal to the stated rate of interest. 
A)  increased. 
B)  decreased. 
C)  not changed. 
D)  equal to the stated rate of interest.

Question 7

Rob Honda plans to buy a home and can deposit $15000 for the purchase today. If the annual interest rate is 8% how much can Rob expect to have for a down payment in 5 years?

Accepted Answer

The answer of Rob Honda plans to buy a home...

Question 8

If $30000 is deposited in a savings account at the end of each year and the account pays interest of 5% compounded annually what will be the balance of the account at the end of 10 years?

Accepted Answer

A)  $48867 
B)  $315000 
C)  $377337 
D)  $450000 
A)  $48867 
B)  $315000 
C)  $377337 
D)  $450000

Question 9

Sarah Denny purchased an investment for $40260.48. From this investment she will receive $6000 annually for the next 10 years starting one year from now. What rate of interest will Sarah be earning on her investment?

Accepted Answer

The answer of Sarah Denny purchased an investment for $40260.48....

Question 10

If the single amount of $2000 is to be received in 2 years and discounted at 11% its present value is

Accepted Answer

A)  $1818. 
B)  $1623. 
C)  $1802. 
D)  $2754. 
A)  $1818. 
B)  $1623. 
C)  $1802. 
D)  $2754.

Question 11

Cecilia Jeffries purchased an investment for $49090.75. From this investment she will receive $5000 annually for the next 20 years starting one year from now. What rate of interest will Cecilia be earning on her investment?

Accepted Answer

The answer of Cecilia Jeffries purchased an investment for $49090.75....

Question 12

In computing the present value of an annuity it is not necessary to know the number of discount periods.

Accepted Answer

A) True 
 B)False

The process of determining the present value is referred to as _________________ the future amount.

Jose Reynolds deposited $10000 in an account paying interest of 4% compounded annually. What amount will be in the account at the end of 4 years?

The future value of a single amount is the value at a future date of a given amount invested now assuming compound interest.

Which of the following is not necessary to know in computing the future value of an annuity?

Peter Johnson invests $35516.80 now for a series of $5000 annual returns beginning one year from now. Peter will earn 10% on the initial investment. How many annual payments will Peter receive?

The present value of $10000 to be received in 5 years will be smaller if the discount rate is

Rob Honda plans to buy a home and can deposit $15000 for the purchase today. If the annual interest rate is 8% how much can Rob expect to have for a down payment in 5 years?

If $30000 is deposited in a savings account at the end of each year and the account pays interest of 5% compounded annually what will be the balance of the account at the end of 10 years?

Sarah Denny purchased an investment for $40260.48. From this investment she will receive $6000 annually for the next 10 years starting one year from now. What rate of interest will Sarah be earning on her investment?

If the single amount of $2000 is to be received in 2 years and discounted at 11% its present value is

Cecilia Jeffries purchased an investment for $49090.75. From this investment she will receive $5000 annually for the next 20 years starting one year from now. What rate of interest will Cecilia be earning on her investment?

In computing the present value of an annuity it is not necessary to know the number of discount periods.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Filters

Exam 27: Time Value of Money

The process of determining the present value is referred to as _________________ the future amount.

Jose Reynolds deposited $10000 in an account paying interest of 4% compounded annually. What amount will be in the account at the end of 4 years?

The future value of a single amount is the value at a future date of a given amount invested now assuming compound interest.

Which of the following is not necessary to know in computing the future value of an annuity?

Peter Johnson invests $35516.80 now for a series of $5000 annual returns beginning one year from now. Peter will earn 10% on the initial investment. How many annual payments will Peter receive?

The present value of $10000 to be received in 5 years will be smaller if the discount rate is

Rob Honda plans to buy a home and can deposit $15000 for the purchase today. If the annual interest rate is 8% how much can Rob expect to have for a down payment in 5 years?

If $30000 is deposited in a savings account at the end of each year and the account pays interest of 5% compounded annually what will be the balance of the account at the end of 10 years?

Sarah Denny purchased an investment for $40260.48. From this investment she will receive $6000 annually for the next 10 years starting one year from now. What rate of interest will Sarah be earning on her investment?

If the single amount of $2000 is to be received in 2 years and discounted at 11% its present value is

Cecilia Jeffries purchased an investment for $49090.75. From this investment she will receive $5000 annually for the next 20 years starting one year from now. What rate of interest will Cecilia be earning on her investment?

In computing the present value of an annuity it is not necessary to know the number of discount periods.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Filters