109 using the compound interest tables answer each of the following questions requir 4313509

109 using the compound interest tables answer each of the following questions requir 4313509

109.Using the compound interest tables, answer each of the following questions.

Required:

a.

What is the present value on January 1, 2014, of $50,000 due on January 1, 2020, and discounted at 7% compounded annually?

b.

What is the present value on January 1, 2014, of $8,000 due on January 1, 2022, and discounted at 10% compounded semiannually?

110.Using an appropriate compound interest table, answer the following question.

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Required:

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What is the future amount on December 31, 2024, of eleven deposits of $12,000 each with the first deposit being made on December 31, 2014, and interest at 12% compounded annually?

111.Taylor would like to retire on December 31, 2026, and take a trip around the world. In order to do this, she feels she must accumulate $200,000 in her retirement account by that date. She is willing to deposit a certain amount each year into her retirement account, which earns 12% interest compounded annually. Taylor will make the first deposit on December 31, 2017, and the last deposit on December 31, 2026.

Required:

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Determine the amount Taylor must deposit into her retirement account each year. Clearly label all work.

112.At the beginning of 2017, Lisa Co. issued bonds with a face value of $700,000 due on December 31, 2023. The company desires to accumulate a fund to retire these bonds at maturity by making equal annual deposits beginning on December 31, 2017.

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Required:

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Compute the amount that the company must deposit at the end of each year, assuming that the fund will earn 10% interest a year compounded annually and seven deposits are made.

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