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Accy 111- Ch 6 Part 3

14 Questions  I  By Mehleezah
Accy 111- Ch 6 part 3
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1. 
Present and future value tables of $1 at 3% are presented below:
NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $1
11.030000.970871.00000.970871.03001.00000
21.060900.942602.03001.913472.09091.97087
31.092730.915143.09092.828613.18362.91347
41.125510.888494.18363.717104.30913.82861
51.159270.862615.30914.579715.46844.71710
61.194050.837486.46845.417196.66255.57971
71.229870.813097.66256.230287.89236.41719
81.266770.789418.89237.019699.15917.23028
91.304770.7664210.15917.7861110.46398.01969
101.343920.7440911.46398.5302011.80788.78611
111.384230.7224212.80789.2526213.19209.53020
121.425760.7013814.19209.9540014.617810.25262
131.468530.6809515.617810.6349616.086310.95400
141.512590.6611217.086311.2960717.598911.63496
151.557970.6418618.598911.9379419.156912.29607
161.604710.6231720.156912.5611020.761612.93794
  Today Thomas deposited $130,000 in a 2-year, 12% CD that compounds quarterly. What is the maturity value of the CD?
A.
B.
C.
D.
2. 
Present and future value tables of $1 at 3% are presented below:
NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $1
11.030000.970871.00000.970871.03001.00000
21.060900.942602.03001.913472.09091.97087
31.092730.915143.09092.828613.18362.91347
41.125510.888494.18363.717104.30913.82861
51.159270.862615.30914.579715.46844.71710
61.194050.837486.46845.417196.66255.57971
71.229870.813097.66256.230287.89236.41719
81.266770.789418.89237.019699.15917.23028
91.304770.7664210.15917.7861110.46398.01969
101.343920.7440911.46398.5302011.80788.78611
111.384230.7224212.80789.2526213.19209.53020
121.425760.7013814.19209.9540014.617810.25262
131.468530.6809515.617810.6349616.086310.95400
141.512590.6611217.086311.2960717.598911.63496
151.557970.6418618.598911.9379419.156912.29607
161.604710.6231720.156912.5611020.761612.93794
  Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $90,000 8 years from now. How much must Carol deposit to accomplish her goal?
A.
B.
C.
D.
3. 
Present and future value tables of $1 at 3% are presented below:
NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $1
11.030000.970871.00000.970871.03001.00000
21.060900.942602.03001.913472.09091.97087
31.092730.915143.09092.828613.18362.91347
41.125510.888494.18363.717104.30913.82861
51.159270.862615.30914.579715.46844.71710
61.194050.837486.46845.417196.66255.57971
71.229870.813097.66256.230287.89236.41719
81.266770.789418.89237.019699.15917.23028
91.304770.7664210.15917.7861110.46398.01969
101.343920.7440911.46398.5302011.80788.78611
111.384230.7224212.80789.2526213.19209.53020
121.425760.7013814.19209.9540014.617810.25262
131.468530.6809515.617810.6349616.086310.95400
141.512590.6611217.086311.2960717.598911.63496
151.557970.6418618.598911.9379419.156912.29607
161.604710.6231720.156912.5611020.761612.93794
  Shane wants to invest money in a 6% CD account that compounds semiannually. Shane would like the account to have a balance of $100,000 3.5 years from now. How much must Shane deposit to accomplish his goal?
A.
B.
C.
D.
4. 
Present and future value tables of $1 at 3% are presented below:
NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $1
11.030000.970871.00000.970871.03001.00000
21.060900.942602.03001.913472.09091.97087
31.092730.915143.09092.828613.18362.91347
41.125510.888494.18363.717104.30913.82861
51.159270.862615.30914.579715.46844.71710
61.194050.837486.46845.417196.66255.57971
71.229870.813097.66256.230287.89236.41719
81.266770.789418.89237.019699.15917.23028
91.304770.7664210.15917.7861110.46398.01969
101.343920.7440911.46398.5302011.80788.78611
111.384230.7224212.80789.2526213.19209.53020
121.425760.7013814.19209.9540014.617810.25262
131.468530.6809515.617810.6349616.086310.95400
141.512590.6611217.086311.2960717.598911.63496
151.557970.6418618.598911.9379419.156912.29607
161.604710.6231720.156912.5611020.761612.93794
  Bill wants to give Maria a $550,000 gift in 6.5 years. If money is worth 6% compounded semiannually, what is Maria's gift worth today?
Your Answer:
A.
B.
C.
D.
5.  Present and future value tables of $1 at 3% are presented below:
NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $1
11.030000.970871.00000.970871.03001.00000
21.060900.942602.03001.913472.09091.97087
31.092730.915143.09092.828613.18362.91347
41.125510.888494.18363.717104.30913.82861
51.159270.862615.30914.579715.46844.71710
61.194050.837486.46845.417196.66255.57971
71.229870.813097.66256.230287.89236.41719
81.266770.789418.89237.019699.15917.23028
91.304770.7664210.15917.7861110.46398.01969
101.343920.7440911.46398.5302011.80788.78611
111.384230.7224212.80789.2526213.19209.53020
121.425760.7013814.19209.9540014.617810.25262
131.468530.6809515.617810.6349616.086310.95400
141.512590.6611217.086311.2960717.598911.63496
151.557970.6418618.598911.9379419.156912.29607
161.604710.6231720.156912.5611020.761612.93794
A.
B.
C.
D.
6.  Present and future value tables of $1 at 3% are presented below:
NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $1
11.030000.970871.00000.970871.03001.00000
21.060900.942602.03001.913472.09091.97087
31.092730.915143.09092.828613.18362.91347
41.125510.888494.18363.717104.30913.82861
51.159270.862615.30914.579715.46844.71710
61.194050.837486.46845.417196.66255.57971
71.229870.813097.66256.230287.89236.41719
81.266770.789418.89237.019699.15917.23028
91.304770.7664210.15917.7861110.46398.01969
101.343920.7440911.46398.5302011.80788.78611
111.384230.7224212.80789.2526213.19209.53020
121.425760.7013814.19209.9540014.617810.25262
131.468530.6809515.617810.6349616.086310.95400
141.512590.6611217.086311.2960717.598911.63496
151.557970.6418618.598911.9379419.156912.29607
161.604710.6231720.156912.5611020.761612.93794
  Shelley wants to cash in her winning lottery ticket. She can either receive five, $190,000 semiannual payments starting today, or she can receive a lump-sum payment now based on a 6% annual interest rate. What is the equivalent lump-sum
A.
B.
C.
D.
7.  Present and future value tables of $1 at 3% are presented below:
NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $1
11.030000.970871.00000.970871.03001.00000
21.060900.942602.03001.913472.09091.97087
31.092730.915143.09092.828613.18362.91347
41.125510.888494.18363.717104.30913.82861
51.159270.862615.30914.579715.46844.71710
61.194050.837486.46845.417196.66255.57971
71.229870.813097.66256.230287.89236.41719
81.266770.789418.89237.019699.15917.23028
91.304770.7664210.15917.7861110.46398.01969
101.343920.7440911.46398.5302011.80788.78611
111.384230.7224212.80789.2526213.19209.53020
121.425760.7013814.19209.9540014.617810.25262
131.468530.6809515.617810.6349616.086310.95400
141.512590.6611217.086311.2960717.598911.63496
151.557970.6418618.598911.9379419.156912.29607
161.604710.6231720.156912.5611020.761612.93794
  Jose wants to cash in his winning lottery ticket. He can either receive seven, $6,000 semiannual payments starting today, or he can receive a lump-sum payment now based on a 6% annual interest rate. What would be the lump-sum payment?
A.
B.
C.
D.
8. 
Present and future value tables of 1 at 11% are presented below.
PV ofFV ofPVA of FVA of
    $1$1        $1       $1
1.900901.11000.900901.0000
2.811621.232101.712522.1100
3.731191.367632.443713.3421
4.658731.518073.102454.7097
5.593451.685063.695906.2278
6.534641.870414.230547.9129
  Spielberg Inc. signed a $190,000 noninterest-bearing note due in five years from a production company eager to do business. Comparable borrowings have carried an 11% interest rate. At what amount should this debt be valued at its inception?
A.
B.
C.
D.
9.  Present and future value tables of 1 at 11% are presented below.
PV ofFV ofPVA of FVA of
    $1$1        $1       $1
1.900901.11000.900901.0000
2.811621.232101.712522.1100
3.731191.367632.443713.3421
4.658731.518073.102454.7097
5.593451.685063.695906.2278
6.534641.870414.230547.9129
  Polo Publishers purchased a multi-color offset press with terms of $55,000 down and a noninterest-bearing note requiring payment of $40,000 at the end of each year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at:
A.
B.
C.
D.
10. 
A series of equal periodic payments that starts more than one period after the agreement is called:
A.
B.
C.
D.
11. 
Yamaha Inc. hires a new chief financial officer and promises to pay him a lump sum bonus four years after he joins the company. The new CFO insists that the company invest an amount of money at the beginning of each year in a 7% fixed rate investment fund to insure the bonus will be available. To determine the amount that must be invested each year, a computation must be made using the formula for:
A.
B.
C.
D.
12. 
Zulu Corporation hires a new chief executive officer and promises to pay her a signing bonus of $2 million per year for 10 years, starting five years after she joins the company. The liability for this bonus when the CEO is hired:
A.
B.
C.
D.
13. 
Which of the following must be known to compute the interest rate paid from financing an asset purchase with an annuity?
A.
B.
C.
D.
14. 
Loan C has the same principal amount, payment amount and maturity date as Loan D. However, Loan C is structured as an annuity due while Loan D is structured as an ordinary annuity. Loan C's interest rate is:
A.
B.
C.
D.
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