Question 1

From the perspective of a depositor,a savings account is a liability with interest.

Accepted Answer

A) True 
 B)False  False

Question 2

A company can use present and future value computations to estimate the interest component of holding assets over time.

Accepted Answer

A) True 
 B)False  True

Question 3

Future value can be found if the interest rate (i),the number of periods (n),and the present value (p) are known.

Accepted Answer

A) True 
 B)False  True

Question 4

Explain the concept of the present value of a single amount.

Accepted Answer

The present value of a single

Question 5

An interest rate is also called a discount rate.

Accepted Answer

A) True 
 B)False

Question 6

How long will it take an investment of $25,000 at 6% compounded annually to accumulate to a total of $35,462.50?

Accepted Answer

A)  4 years 
B)  5 years 
C)  6 years 
D)  2 years 
E)  10 years 
A)  4 years 
B)  5 years 
C)  6 years 
D)  2 years 
E)  10 years

Question 7

Explain the concept of the present value of an annuity.

Accepted Answer

The present value of an annuit

Question 8

Sandra has a savings account that is now $50,000.She started with $28,225 and earned interest at 10% compounded annually.It took five years to accumulate the $50,000.

Accepted Answer

A) True 
 B)False

Question 9

The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know its worth at the future date.

Accepted Answer

A) True 
 B)False

Question 10

What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?

Accepted Answer

A) $24,838.00 
B) $21,668.80 
C) $31,049.00 
D) $40,000.00 
E) $44,800,00 
A) $24,838.00 
B) $21,668.80 
C) $31,049.00 
D) $40,000.00 
E) $44,800,00

Question 11

To calculate present value of an amount,two factors are required: __________________ and ___________________.

Accepted Answer

interest r

Question 12

Explain the concept of the future value of a single amount.

Accepted Answer

The future value of a single a

Question 13

The number of periods in a future value calculation can only be expressed in years.

Accepted Answer

A) True 
 B)False

Question 14

The number of periods in a present value calculation can only be expressed in years.

Accepted Answer

A) True 
 B)False

Question 15

An ordinary annuity refers to a series of equal payments made or received at the end of equal intervals.

Accepted Answer

A) True 
 B)False

Question 16

Interest is:

Accepted Answer

A) Time. 
B) A borrower's payment to the owner of an asset for its use. 
C) The same as a savings account. 
D) Always a liability. 
E) Always an asset. 
A) Time. 
B) A borrower's payment to the owner of an asset for its use. 
C) The same as a savings account. 
D) Always a liability. 
E) Always an asset.

Question 17

A company borrows money from the bank by promising to make eight semiannual payments of $9,000 each.How much is the company able to borrow if the interest rate is 10% compounded annually?

Accepted Answer

$9,000 x 6

Question 18

You hope to retire in 10 years.Regrettably you are only just now beginning to save money for this purpose.You expect to save $6,000 a year at an annual rate of 8%.How much will you have accumulated when you retire?

Accepted Answer

$6,000 x 1

Question 19

At an annual interest rate of 8% compounded annually,$5,300 will accumulate to a total of $7,210.65 in five years.

Accepted Answer

A) True 
 B)False

Question 20

The future value of an ________________ annuity is the accumulated value of each annuity payment with interest as of the date of the final payment.

Accepted Answer

The answer of The future value of an ________________ annuity...

From the perspective of a depositor,a savings account is a liability with interest.

A company can use present and future value computations to estimate the interest component of holding assets over time.

Future value can be found if the interest rate (i),the number of periods (n),and the present value (p) are known.

Explain the concept of the present value of a single amount.

An interest rate is also called a discount rate.

How long will it take an investment of $25,000 at 6% compounded annually to accumulate to a total of $35,462.50?

Explain the concept of the present value of an annuity.

Sandra has a savings account that is now $50,000.She started with $28,225 and earned interest at 10% compounded annually.It took five years to accumulate the $50,000.

The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know its worth at the future date.

What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?

To calculate present value of an amount,two factors are required: and _.

Explain the concept of the future value of a single amount.

The number of periods in a future value calculation can only be expressed in years.

The number of periods in a present value calculation can only be expressed in years.

An ordinary annuity refers to a series of equal payments made or received at the end of equal intervals.

Interest is:

A company borrows money from the bank by promising to make eight semiannual payments of $9,000 each.How much is the company able to borrow if the interest rate is 10% compounded annually?

You hope to retire in 10 years.Regrettably you are only just now beginning to save money for this purpose.You expect to save $6,000 a year at an annual rate of 8%.How much will you have accumulated when you retire?

At an annual interest rate of 8% compounded annually,$5,300 will accumulate to a total of $7,210.65 in five years.

The future value of an ________________ annuity is the accumulated value of each annuity payment with interest as of the date of the final payment.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 14: Applying Present and Future Values

From the perspective of a depositor,a savings account is a liability with interest.

A company can use present and future value computations to estimate the interest component of holding assets over time.

Future value can be found if the interest rate (i),the number of periods (n),and the present value (p) are known.

Explain the concept of the present value of a single amount.

An interest rate is also called a discount rate.

How long will it take an investment of $25,000 at 6% compounded annually to accumulate to a total of $35,462.50?

Explain the concept of the present value of an annuity.

Sandra has a savings account that is now $50,000.She started with $28,225 and earned interest at 10% compounded annually.It took five years to accumulate the $50,000.

The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know its worth at the future date.

What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?

To calculate present value of an amount,two factors are required: __________________ and ___________________.

Explain the concept of the future value of a single amount.

The number of periods in a future value calculation can only be expressed in years.

The number of periods in a present value calculation can only be expressed in years.

An ordinary annuity refers to a series of equal payments made or received at the end of equal intervals.

Interest is:

A company borrows money from the bank by promising to make eight semiannual payments of $9,000 each.How much is the company able to borrow if the interest rate is 10% compounded annually?

You hope to retire in 10 years.Regrettably you are only just now beginning to save money for this purpose.You expect to save $6,000 a year at an annual rate of 8%.How much will you have accumulated when you retire?

At an annual interest rate of 8% compounded annually,$5,300 will accumulate to a total of $7,210.65 in five years.

The future value of an ________________ annuity is the accumulated value of each annuity payment with interest as of the date of the final payment.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

To calculate present value of an amount,two factors are required: and _.