What_Is_the_Present_Value_of_Nine_Annual_Cash_Payments_of_$4,000,_to_Be_Paid_at_the_End_of_Each_Year_Using_an_Interest_Rate_of_6%_

Present value calculations. Using a present value table, your calculator, or a computer program present value function, answer the following questions: Required: a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%' b. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%' 224 Part I Financial Accounting P6.24. LO 7, 8, 10 P6.25. LO 8, 10 c. How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 12 years, assuming that the account will earn 10% interest' d. How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of seven years, assuming that the account will earn 12% interest' e. Assume that a machine was purchased for $60,000. Cash of $20,000 was paid, and a four-year, 8% note payable was signed for the balance. Use the horizontal model, or write the journal entry, to show the purchase of the machine as described above. How much is the equal annual payment of principal and interest due at the end of each year' Round your answer to the nearest $1. What is the total amount of interest expense that will be reported over the life of the note' Round your answer to the nearest $1. Use the horizontal model, or write the journal entries, to show the equal annual payments of principal and interest due at the end of each year. http://www.justanswer.com/questions/1uxjw-present-value-calculations-using# Answer helllo XXXXXXX, wellcome to justanswer here is your answer a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%' *PV = $4000 x (1 - 1/(*1.06)^9) / 0.06 =$27,206.80 b. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%' PV = (Amount)x(1+i)^n = $15,000x1.18^20 = $410,895.52 c. How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 12 years, assuming that the account will earn 10% interest' PV = (FV)x(1/(1+i)^n) = $300,000x1/1.1^12 = $95,589.25 d. How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of seven years, assuming that the account will earn 12% interest' PV = (FV)x(1/(1+i)^n) = $50,000x1/1.12^7 = $22,617.46 like my answer' please press the Accept button Read more: http://www.justanswer.com/questions/1uxjw-present-value-calculations-using##ixzz0UXft1qMi http://www.blurtit.com/q340216.html {text:list-item} Consider the formula P = 67.38 ・ (1.026)t. If we let P represent the population of Mexico in year t where t is the number of years from 1980, confirm that this formula gives the same population values as those given in the table in Example 6.5. Explain where the number 67.38 and the number 1.026 were obtained. B. What would the population in 1990 have been if growth had continued in this same pattern' 8.Consider the formula P = 67.38 · (1.026)t. If we let P represent the population of Mexico in year t where t is the number of years from 1980, confirm that this formula gives the same population values as those given in the table in Example 6.5. o Example 6.5 o The following table gives the estimated population (in millions) of Mexico for the o years 1980 to 1986. o Year Population in Millions o 1980 67.38 o 1981 69.13 o 1982 70.93 o 1983 72.77 o 1984 74.66 o 1985 76.60 o 1986 78.59 o Verify that the population of Mexico experienced exponential growth during the o years 1980 through 1986, and explain why an exponential model for population o growth is a reasonable one. o Solution o We check for exponential growth by dividing each year’s population by the previous year’s population and determining if this value is the same (that is, a constant) o . We need to check each pair to make sure. Note that the difference in population in successive years is increasing from a growth of 1.75 million between the years 1980 and 1981 to an increase of 1.99 million between 1985 and 1986. Because individuals in the population (whether people or bacteria) reproduce, it is reasonable to predict that a population (unless there are other factors to be considered) will grow exponentially. o Therefore, we might expect the population to increase at a rate proportional o to the number of individuals now in the population. The population will grow o faster and faster as time goes on. This is in contrast to a linear function, which o always increases at the same rate. Category: Homework Value: $15 Status Read more: http://www.justanswer.com/questions/2emza-1-ch-6-problem-p6-26-b-c-d#ixzz0UdOx1wAx