Financial Accounting > EXAM > ACCT 211 Appendix B Exercises answers complete solutions (All)

ACCT 211 Appendix B Exercises answers complete solutions

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Question 1 Mike Derr Company expects to earn 8% per year on an investment that will pay $596,000 eight years from now. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from... the tables provided. Round "Table Factor" to 4 decimal places.) Compute the present value of this investment. Future Value Question 2 On January 1, 2016, a company agrees to pay $25,000 in three years. If the annual interest rate is 8%, determine how much cash the company can borrow with this agreement. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value Question 3 Tom Thompson expects to invest $6,000 at 12% and, at the end of a certain period, receive $57,878. How many years will it be before Thompson receives the payment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value Question 4 Bill Padley expects to invest $21,000 for 10 years, after which he wants to receive $25,599.00. What rate of interest must Padley earn? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value Question 5 Mark Welsch deposits $8,100 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $8,100 plus earned interest must remain in the account 1 years before it can be withdrawn. How much money will be in the account at the end of 1 years? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Present Value Question 6 Spiller Corp. plans to issue 10%, 10-year, $460,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated December 31, 2016, and are issued on that date. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places and final answers to nearest whole dollar.) If the market rate of interest for the bonds is 8% on the date of issue, what will be the total cash proceeds from the bond issue? Table Values are Based on: Cash Flow Present (maturity) value Interest (annuity) Total cash proceeds [Show More]

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