Multiple Choice
On December 1, 2007, Michael Hess Company sold some machinery to Shawn Keling Company.The two companies entered into an installment sales contract at a predetermined interest rate.The contract required four equal annual payments with the first payment due on December 1, 2007, the date of the sale.What present value concept is appropriate for this situation?
A) Future amount of an annuity of 1 for four periods
B) Future amount of 1 for four periods
C) Present value of an ordinary annuity of 1 for four periods
D) Present value of an annuity due of 1 for four periods.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: The market price of a $200,000, ten-year,
Q10: If $3,000 is put in a savings
Q11: Ed Sloan wants to withdraw $20,000 (including
Q12: How much must be deposited on January
Q15: What amount should be deposited in a
Q16: Ann Ruth wants to invest a certain
Q19: What amount will be in a bank
Q26: In determining present value, a company moves
Q37: If the number of periods is known,
Q133: Which table would you use to determine