Question 1

The interest rate is also called the __________________ rate.

Accepted Answer

The answer of The interest rate is also called the...

Question 2

Madera Iron Sculpting is planning to save the money needed to replace one of its robotic welders in five years by making a one-time deposit of $20,000 today and four yearly contributions of $5,000 beginning at the end of year 1.The deposits will earn 10% interest.How much money will Madera have accumulated at the end of five years to replace the welder?

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 3

Chad is setting up a retirement fund,and he plans on depositing $5,000 per year in an investment that will pay 7% annual interest.How long will it take him to reach his retirement goal of $69,080?

Accepted Answer

A) 13.816 years 
B) 0.072 years 
C) 10 years 
D) 20 years 
E) 5 years 
A) 13.816 years 
B) 0.072 years 
C) 10 years 
D) 20 years 
E) 5 years

Question 4

An individual is planning to set-up an education fund for her children.She plans to invest $10,000 annually at the end of each year.She expects to withdraw money from the fund at the end of 10 years and expects to earn an annual return of 8%.What will be the total value of the fund at the end of 10 years?

Accepted Answer

A) $ 46,320 
B) $ 67,107 
C) $100,000 
D) $144,870 
E) $215,890 
A) $ 46,320 
B) $ 67,107 
C) $100,000 
D) $144,870 
E) $215,890

Question 5

Daley Co.lends $524,210 to Davis Corporation.The terms of the loan require that Davis repay the loan with six semiannual period-end payments of $100,000 each.What semiannual interest rate is Davis paying on the loan?

Accepted Answer

$524,210/$

Question 6

An annuity is a series of equal payments occurring at equal intervals.

Accepted Answer

A) True 
 B)False

Question 7

The present value of $5,000 per year for three years at 12% compounded annually is $12,009.

Accepted Answer

A) True 
 B)False

Question 8

What interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000?

Accepted Answer

A) 5% 
B) 8% 
C) 10% 
D) 12% 
E) 15% 
A) 5% 
B) 8% 
C) 10% 
D) 12% 
E) 15%

Question 9

A company needs to have $200,000 in four years,and will create a fund to ensure that the $200,000 will be available.If they can earn a 7% return,how much must the company invest in the fund today to equal the $200,000 at the end of four years?

Accepted Answer

$200,000 x

Question 10

A company is beginning a savings plan.It will save $15,000 per year for the next 10 years.How much will the company have accumulated after the tenth year-end deposit,assuming the fund earns 10% interest?

Accepted Answer

$15,000 x

Question 11

_____________ is a borrower's payment to the owner of an asset for its use.

Accepted Answer

The answer of _____________ is a borrower's payment to the...

Question 12

Interest is the borrower's payment to the owner of an asset for its use.

Accepted Answer

A) True 
 B)False

Question 13

Annette has a loan that requires a $25,000 payment at the end of three years.The interest rate on the loan is 5%,compounded annually.How much did Annette borrow today?

Accepted Answer

$25,000 x

Question 14

Crowe Company has acquired a building with a loan that requires payments of $20,000 every six months for five years.The annual interest rate on the loan is 12%.What is the present value of the building?

Accepted Answer

A) $72,096 
B) $113,004 
C) $147,202 
D) $86,590 
E) $200,000 
A) $72,096 
B) $113,004 
C) $147,202 
D) $86,590 
E) $200,000

Question 15

A company borrows money from the bank by promising to make six annual year-end payments of $25,000 each.How much is the company able to borrow if the interest rate is 9%?

Accepted Answer

$25,000 x

Question 16

With deposits of $5,000 at the end of each year,you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%.

Accepted Answer

A) True 
 B)False

Question 17

When you reach retirement age,you will have one fund of $100,000 from which you are going to make annual withdrawals of $14,702.The fund will earn 6% per year.For how many years will you be able to draw an even amount of $14,702?

Accepted Answer

The answer of When you reach retirement age,you will have...

Question 18

The future value of an ordinary annuity is the accumulated value of each annuity payment with interest one period after the date of the final payment.

Accepted Answer

A) True 
 B)False

Question 19

Troy has $105,000 now.He has a loan of $175,000 that he must pay at the end of five years.He can invest his $105,000 at 10% interest compounded semiannually.Will Troy have enough to pay his loan at the end of the five years?

Accepted Answer

$105,000 x 1.6289 =

Question 20

The future value of $100 compounded semiannually for three years at 12% equals $140.49.

Accepted Answer

A) True 
 B)False

The interest rate is also called the __________________ rate.

Chad is setting up a retirement fund,and he plans on depositing $5,000 per year in an investment that will pay 7% annual interest.How long will it take him to reach his retirement goal of $69,080?

Daley Co.lends $524,210 to Davis Corporation.The terms of the loan require that Davis repay the loan with six semiannual period-end payments of $100,000 each.What semiannual interest rate is Davis paying on the loan?

An annuity is a series of equal payments occurring at equal intervals.

The present value of $5,000 per year for three years at 12% compounded annually is $12,009.

What interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000?

A company needs to have $200,000 in four years,and will create a fund to ensure that the $200,000 will be available.If they can earn a 7% return,how much must the company invest in the fund today to equal the $200,000 at the end of four years?

A company is beginning a savings plan.It will save $15,000 per year for the next 10 years.How much will the company have accumulated after the tenth year-end deposit,assuming the fund earns 10% interest?

_____________ is a borrower's payment to the owner of an asset for its use.

Interest is the borrower's payment to the owner of an asset for its use.

Annette has a loan that requires a $25,000 payment at the end of three years.The interest rate on the loan is 5%,compounded annually.How much did Annette borrow today?

Crowe Company has acquired a building with a loan that requires payments of $20,000 every six months for five years.The annual interest rate on the loan is 12%.What is the present value of the building?

A company borrows money from the bank by promising to make six annual year-end payments of $25,000 each.How much is the company able to borrow if the interest rate is 9%?

With deposits of $5,000 at the end of each year,you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%.

When you reach retirement age,you will have one fund of $100,000 from which you are going to make annual withdrawals of $14,702.The fund will earn 6% per year.For how many years will you be able to draw an even amount of $14,702?

The future value of an ordinary annuity is the accumulated value of each annuity payment with interest one period after the date of the final payment.

Troy has $105,000 now.He has a loan of $175,000 that he must pay at the end of five years.He can invest his $105,000 at 10% interest compounded semiannually.Will Troy have enough to pay his loan at the end of the five years?

The future value of $100 compounded semiannually for three years at 12% equals $140.49.

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

The interest rate is also called the __________________ rate.

Chad is setting up a retirement fund,and he plans on depositing $5,000 per year in an investment that will pay 7% annual interest.How long will it take him to reach his retirement goal of $69,080?

Daley Co.lends $524,210 to Davis Corporation.The terms of the loan require that Davis repay the loan with six semiannual period-end payments of $100,000 each.What semiannual interest rate is Davis paying on the loan?

An annuity is a series of equal payments occurring at equal intervals.

The present value of $5,000 per year for three years at 12% compounded annually is $12,009.

What interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000?

A company needs to have $200,000 in four years,and will create a fund to ensure that the $200,000 will be available.If they can earn a 7% return,how much must the company invest in the fund today to equal the $200,000 at the end of four years?

A company is beginning a savings plan.It will save $15,000 per year for the next 10 years.How much will the company have accumulated after the tenth year-end deposit,assuming the fund earns 10% interest?

_____________ is a borrower's payment to the owner of an asset for its use.

Interest is the borrower's payment to the owner of an asset for its use.

Annette has a loan that requires a $25,000 payment at the end of three years.The interest rate on the loan is 5%,compounded annually.How much did Annette borrow today?

Crowe Company has acquired a building with a loan that requires payments of $20,000 every six months for five years.The annual interest rate on the loan is 12%.What is the present value of the building?

A company borrows money from the bank by promising to make six annual year-end payments of $25,000 each.How much is the company able to borrow if the interest rate is 9%?

With deposits of $5,000 at the end of each year,you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%.

When you reach retirement age,you will have one fund of $100,000 from which you are going to make annual withdrawals of $14,702.The fund will earn 6% per year.For how many years will you be able to draw an even amount of $14,702?

The future value of an ordinary annuity is the accumulated value of each annuity payment with interest one period after the date of the final payment.

Troy has $105,000 now.He has a loan of $175,000 that he must pay at the end of five years.He can invest his $105,000 at 10% interest compounded semiannually.Will Troy have enough to pay his loan at the end of the five years?

The future value of $100 compounded semiannually for three years at 12% equals $140.49.

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