Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter M, Problem 1MC
To determine
Determine the amount to be deposited by today in a bank to get $1,000 in 3 years.
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If $100 is deposited in a bank with an interest rate of 8%, and the same amount of money is taken out each year for other investments, what is the cash flow each year? $100 $108 $8 $92
Table 1 shows deposit into saving account with rate of return 10% per year.
Determine the future value at year 20.
Table 1: Deposit Money into Saving Account Information
Year
1
2
2,000
3
5
6.
Deposit, RM per year
800
2,000
2,000
1,800
1,600
1,400
consider the following cash flow diagram:
Date
$500
-$500
Cash
flow
If the current interest rate is 7%, then the value as of year 1 is closest to
Select one:
a. $0
b. $68
c. $1000
d. $570
Chapter M Solutions
Intermediate Accounting: Reporting And Analysis
Ch. M - Explain interest.Ch. M - Prob. 2GICh. M - Prob. 3GICh. M - Prob. 4GICh. M - Prob. 5GICh. M - Prob. 6GICh. M - Prob. 7GICh. M - Prob. 8GICh. M - Prob. 9GICh. M - Prob. 10GI
Ch. M - Prob. 11GICh. M - Prob. 12GICh. M - Prob. 13GICh. M - Prob. 14GICh. M - Prob. 15GICh. M - Prob. 16GICh. M - Prob. 17GICh. M - Prob. 18GICh. M - Prob. 19GICh. M - Prob. 20GICh. M - Prob. 21GICh. M - Prob. 22GICh. M - What is a deferred ordinary annuity? How does it...Ch. M - Prob. 24GICh. M - Prob. 25GICh. M - Give two examples of assets and three examples of...Ch. M - Prob. 1MCCh. M - Prob. 2MCCh. M - Refer to the present value table information on...Ch. M - Refer to the present value table information on...Ch. M - On May 1, 2019, a company purchased a new machine...Ch. M - An office equipment representative has a machine...Ch. M - Prob. 7MCCh. M - For which of the following transactions would the...Ch. M - On July 1, 2019, James Rago signed an agreement to...Ch. M - On January 1, 2019, Ken Company sold a machine to...Ch. M - Prob. 1RECh. M - Based on the following annual interest rates, what...Ch. M - Prob. 3RECh. M - Prob. 4RECh. M - Next Level Potter wishes to deposit a sum that at...Ch. M - Prob. 6RECh. M - Prob. 7RECh. M - Prob. 8RECh. M - Prob. 9RECh. M - If 90,000 is invested in a fund on December 31,...Ch. M - Samuel Ames owes 20,000 to a friend. He wants to...Ch. M - Prob. 12RECh. M - Prob. 13RECh. M - Prob. 14RECh. M - Prob. 1ECh. M - Future Value Hugh Colson deposited 20,000 in a...Ch. M - Prob. 3ECh. M - Future Value of Annuity Using appropriate tables,...Ch. M - Prob. 5ECh. M - Prob. 6ECh. M - Prob. 7ECh. M - Cash Flow Amounts R. Lee Rouse borrows 10,000 that...Ch. M - Prob. 9ECh. M - Amount of an Annuity John Goodheart wishes to...Ch. M - Prob. 11ECh. M - Prob. 12ECh. M - Present Value of Leased Asset On January 1, 2019,...Ch. M - Amount of an Annuity Beginning December 31, 2023,...Ch. M - Prob. 1PCh. M - Prob. 2PCh. M - Prob. 3PCh. M - Determining Loan Repayments Jerry Rockness needs...Ch. M - Prob. 5PCh. M - Prob. 6PCh. M - Value of an Annuity Using the appropriate tables,...Ch. M - Serial Installments; Amounts Applicable to...Ch. M - Prob. 9PCh. M - Comprehensive Part a. Reproduced in the following...Ch. M - Prob. 11PCh. M - Present Value of an Annuity John Joshua wants to...Ch. M - Present Value of an Annuity Ralph Benke wants to...Ch. M - Compound Interest Issues You are given the...Ch. M - Cash Flow Amounts On January 1, 2019, Philip...Ch. M - Prob. 16PCh. M - Comprehensive The following are three independent...Ch. M - Prob. 18PCh. M - Asset Purchase Price BWP Inc. is considering the...Ch. M - Prob. 1CCh. M - Prob. 2CCh. M - Prob. 3CCh. M - Prob. 4CCh. M - Prob. 5C
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Similar questions
- Refer to the present value table information on the previous page. If Kathleen put 3,000 in a savings account today, what amount of cash will be available 2 years from today? a. 3,000 0.857 b. 3,000 0.857 2 3,000 c. 4,000 0.681 0926 d. cannot be determined from the information givenarrow_forwardQuestion: Use the following information to answer the next two questions: You deposited the following stream of cash flow at the end of the year: Year deposit rate of interest 1 5000 8% 4 4000 8.5% 6 7000 10% What will be the total amount in your account at the end of 6 years? 2. What is the present value of your deposit?arrow_forwardfind the equivalent value of this cash flow at year 5 where i=5% NOTE: if you need to calculate the interest rate, always take the first 4 digits (0.xxxx) $200 Equivalent value? $500 3 9. 10 $300 а. 960 b. 945 c. 951 d. 955 e. 949 2.arrow_forward
- For each of the following annuities, calculate the annual cash flow: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Cash Flow Present Value 31,600 28,450 147,500 216,300 $ $ $ $ Years 6 8 12 16 Interest Rate 9 % 7 12 11arrow_forwardTime Value of Money Concept The following situations involve the application of the time value of money concept. Use the full factor when calculating your results. Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 1. Janelle Carter deposited $9,960 in the bank on January 1, 2000, at an interest rate of 12% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.$fill in the blank 1 2. Mike Smith deposited $22,360 in the bank on January 1, 2007. On January 2, 2017, this deposit has accumulated to $69,447. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? Round to the nearest whole percent.fill in the blank 2 % 3. Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 12% compounded annually. On January 1, 2017, the deposit has accumulated to $14,200. How much money did Lee…arrow_forwardQuestion: Compute the future value of a $105 cash flow for the following combinations of rates and times.&n... (2 bookmarks) Compute the future value of a $105 cash flow for the following combinations of rates and times. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. r = 8%; t = 10 years b. r = 8%; t = 20 years c. r = 4%; t = 10 years d. r = 4%; t = 20 yearsarrow_forward
- K Suppose you receive $500 at the end of each year for the next three years. a. If the interest rate is 7%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 7% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)? a. The present value of the cash flow is $ (Round to the nearest cent)arrow_forwardWhat is the present value of a stream of 5 end-of-year annual cash receipts of $3,200 given a discount rate of 13%? (Round your final answers to 2 decimal places.) a. Use the appropriate table (Appendix C: Table 1, Table 2) to answer the above question. b. Use the appropriate built-in function in Excel to answer the above question. a. b. PV of annuity PV of annuityarrow_forward2. Assume that you currently have $53,296 in the bank. That you are going to receive $619 yearly until the day of your retirement (22 years from now). What is the present value of all these cash flows if the interest rate is 6.84%?arrow_forward
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