35 views

Uploaded by Lương Thế Cường

acct

- Time Value of Money
- Intermediate Accounting1
- g12m finance growth decay
- 02_Al-Qaisi
- mrt.pptx
- Time Value of Money
- 2851
- TMV 1
- Time Value and Discounting
- Chap 009
- All MOI
- Notes Chapter 5 Financial
- Cfin4 Integrative Problem Ch04
- Six Sigma Methods and Its Application in Project Management
- 10946 Handouts TimeValueMoney Brief
- Capital Budgeting
- Basic Finance-Annuity (1)
- Basic Investment
- Present Value Table.pdf
- Time Value of Money

You are on page 1of 2

1. 2. Interest is the difference between the amount borrowed and the principal. Compound interest is computed on the principal and any interest earned that has not been paid or received. The future value of a single amount is the value at a future date of a given amount invested assuming compound interest. When the periodic payments are not equal in each period, the future value can be computed by using a future value of an annuity table. The process of determining the present value is referred to as discounting the future amount. A higher discount rate produces a higher present value. In computing the present value of an annuity, it is not necessary to know the number of discount periods. Discounting may be done on an annual basis or over shorter periods of time such as semiannually. The present value of a bond is a function of two variables: (1) the payment amounts and (2) the discount rate. When the discount rate is equal to the contractual rate, the present value of the bonds will equal the bonds' face value.

3.

4.

5. 6. 7.

8. 9.

10.

11.

The factor 1.12486 is taken from the 4% column and 3 periods row in a certain table. From what table is this factor taken? a. Future value of 1 b. Future value of an annuity c. Present value of 1 d. Present value of an annuity If $5,000 is put in a savings account paying interest of 4% compounded annually, what amount will be in the account at the end of 5 years? a. $4,109.65 b. $6,000.00 c. $6,077.55 d. $6,083.25 Gomez Company deposits $10,000 in a fund at the end of each year for 5 years. The fund pays interest of 4% compounded annually. The balance in the fund at the end of 5 years is computed by multiplying a. $10,000 by the future value of 1 factor. b. $50,000 by 1.04. c. $50,000 by 1.20. d. $10,000 by the future value of an annuity factor.

12.

13.

14.

If $2,500 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? a. $4,072.23 b. $26,250.00 c. $31,444.73 d. $37,500.00 If you are able to earn an 8% rate of return, what amount would you need to invest to have $2,000 one year from now? a. $1,849.78 b. $1,851.86 c. $1,818.18 d. $1,980.00 If you are able to earn a 15% rate of return, what amount would you need to invest to have $500 one year from now? a. $495.05 b. $437.50 c. $425.00 d. $434.79 Suppose you have a winning sweepstakes ticket and you are given the option of accepting $500,000 three years from now or taking the present value of the $500,000 now. The sponsor of the prize uses a 6% discount rate. If you elect to receive the present value of the prize now, the amount you will receive is a. $419,810. b. $431,920. c. $445,000. d. $500,000. The amount you must deposit now in your savings account, paying 6% interest, in order to accumulate $3,000 for a down payment 5 years from now on a new car is a. $600.00. b. $2,241.78. c. $2,238.66. d. $2,100.00. Simmons Company has just purchased equipment that requires annual payments of $10,000 to be paid at the end of each of the next 4 years. The appropriate discount rate is 15%. What is the present value of the payments? a. $28,549.80 b. $40,000.00 c. $11,743.64 d. $37,533.56

15.

16.

17.

18.

19.

ANSWERS

True and False 1. F 2. T 3. T 4. F 5. T 6. F 7. F 8. T 9. F 10. T Multiple Choice 11. A 12. D 13. D 14. C 15. B 16. D 17. A 18. B 19. A

- Time Value of MoneyUploaded byVaidyanathan Ravichandran
- Intermediate Accounting1Uploaded byakule
- g12m finance growth decayUploaded byapi-235269401
- 02_Al-QaisiUploaded byhadi
- mrt.pptxUploaded bysilicap
- Time Value of MoneyUploaded bydeepanissanka
- 2851Uploaded byLily
- TMV 1Uploaded byJerome Montoya
- Time Value and DiscountingUploaded byibraheem
- Chap 009Uploaded byMonica Reyes
- All MOIUploaded byShaira Bugayong
- Notes Chapter 5 FinancialUploaded byfiezayusof
- Cfin4 Integrative Problem Ch04Uploaded byJagatjeet Mohapatra
- Six Sigma Methods and Its Application in Project ManagementUploaded byAJER JOURNAL
- 10946 Handouts TimeValueMoney BriefUploaded byAbhisek Maheswari
- Capital BudgetingUploaded bykingword
- Basic Finance-Annuity (1)Uploaded bylistalist
- Basic InvestmentUploaded byPaul Mariano
- Present Value Table.pdfUploaded byNushrat Jahan
- Time Value of MoneyUploaded bykkv_phani_varma5396
- Espaciamiento Economico de Pozos Richard CorrieUploaded byalvaro_massimo
- Chp2 Compound InterestUploaded byYanie Taha
- FMUploaded byGeet Maurya
- VU papers b.msUploaded byusmanias
- Chap 004Uploaded byvan tinh khuc
- financial. planning.doc.docxUploaded byAmrit Tejani
- Commercial MathematicsUploaded byVicky Mariner
- CPT Math StatsUploaded byVivek Vincent
- ch10_solUploaded byJohn Nigz Payee
- General Maths NotesUploaded bySam Jeffrey

- 2015 Student Payroll CalendarUploaded byLương Thế Cường
- 12.ZipcarUploaded byLương Thế Cường
- PosterUploaded byLương Thế Cường
- Homework Exercises – 9 AnswersUploaded byLương Thế Cường
- FootprintUploaded byLương Thế Cường
- 5.Campus MapUploaded byLương Thế Cường
- 15WQ Final ExamsUploaded byLương Thế Cường
- 2014-15 Complete Academic CalUploaded byLương Thế Cường
- Ten Questions About LeadershipUploaded byLương Thế Cường
- icon1Uploaded byLương Thế Cường
- icon1Uploaded byLương Thế Cường
- Welcome Week Schedule 2013Uploaded byLương Thế Cường
- 2014 CA Application PacketUploaded byLương Thế Cường
- Aicpa - New Cpa Exam ReportUploaded byLương Thế Cường
- Ryan Patrone's Thesis- Improper Capitalization of Expenditures Who Dropped the BallUploaded byLương Thế Cường
- Just The Way You AreUploaded byWaveley Qiu
- WalmartUploaded byLương Thế Cường
- Excel FlyerUploaded byLương Thế Cường
- 14SQ Final ScheduleUploaded byLương Thế Cường
- 5.Campus MapUploaded byLương Thế Cường
- 2015 CA Application PacketUploaded byLương Thế Cường
- GradAppEDU13-14pdfUploaded byLương Thế Cường
- 2014-15 Complete Academic CalUploaded byLương Thế Cường
- 1h Sang (Piano With Voice)Uploaded bylovepocket
- PS Leadership Cruise FlyerUploaded byLương Thế Cường
- FAQ - Albers Excel CertificationUploaded byLương Thế Cường
- Nhat Ki Cua Me Piano CoverUploaded byKaren Nguyen
- chp04-cevapUploaded bydbjn
- Variations on the Kanon (Canon in D) arr. by George WinstonUploaded bymelowd
- 15SQ Final ExamsUploaded byLương Thế Cường

- Rtec- 14 ProceedingsUploaded bybkumar43
- CementUploaded bymmmaaarrr
- EE348 CH2 BooleanAlgebra 2014-02-23Uploaded byAliBaranIşık
- Solvent Cementing Literature as on WebsiteUploaded byNaeemSiddiqui
- GlossaryUploaded byПростой Человек
- 90 Ton Truck CraneUploaded bymanurung4
- Methods of Soil and Base StabilizationUploaded bySunil Bose
- PF ImprovementUploaded byAerwin Bautista
- Insurance_L&T(4)Uploaded byamrpandey
- air12_manualUploaded byrendermanuser
- Attachment J (Draft Offshore Pipelines Decommissioning Guideline)Uploaded bysmithwork
- India Mineral Yearbook: Iron and SteelUploaded byVipin Mohan
- Environmental crime and pollution: wasteful reflections (1).Uploaded by6ptarentcar
- UntitledUploaded byapi-183576294
- COMPILATION OF CASES (PERSONS & FAMILY RELATIONS) (1).docxUploaded byShajiraAzra
- Module 7 Computer SettingsUploaded byterabytes95
- 59836704-Market-Analysis-of-Perfetti-Van-Melle.pdfUploaded byAshutosh Singh
- Green Power GenerationUploaded byFaisal Jalal
- Sap Abap Oops online trainingUploaded byspecto
- AB Employer's Guide to EmploymentUploaded byjack
- The Rise of the Brand State - Peter van HamUploaded byGabriel Rotundu
- polizza Reale (Documentazione Compagnia)(1).pdfUploaded byAnonymous 16C8qy
- P-1583-Fernandez Villarroel, Ricardo AndresUploaded byJuan Contreras
- (Oxford American Cardiology Library) Stuart Katz, Ragavendra Baliga-Heart Failure _ a Practical Guide for Diagnosis and Management-Oxford University Press (2014)Uploaded byAdelfaVelika
- DENITRIFICATIONUploaded bymishti3001
- Primed for Success The Story of Scientific Design Company, How Chemical Engineers Created the Petrochemical Industry (2019).pdfUploaded byAfshin Azar
- The Eiffel TowerUploaded byEkky Sang Pangeran Kodok
- Advanced Wastewater Treatment Technology - Mech Vapor RecompressionUploaded byMacarthur B. Monsanto
- Final Exam Business Government and SocietyUploaded byJamar Johnson
- Mou TemplateUploaded byDea Ambarsari