Future Value of Annuity Using appropriate tables, solve the following future value of annuity problems: Required 1. What is the future value on December 31, 2016 of seven cash flows of $10,000, with the first cash payment being made on December 31, 2010 and interest at 12% being compounded annually? 2. What is the future value on December 31, 2017 of seven cash flows of $10,000, with the first cash payment made on December 31, 2010 and interest at 12% being compounded annually?
Q: Budget Electronics is planning to sell 2,200 and produce 2,000 wicker baskets during June. Each unit...
A: Hey, since there are multiple questions posted, we will answer the first question. If you want any s...
Q: You are working as Accounting Information System(AIS) expert in H and H, a Multinational Entity(MNE)...
A:
Q: The Chief Information Officer (CIO) and the Managing Director (MD) of Illustrious Limited recently h...
A: The idea of MD (Managing Director) can be fruitful. Many times, while analyzing the system a complet...
Q: What concept underlies the two transaction perspective in accounting for foreign currency transactio...
A:
Q: Explain applicable techniques of auditing in case of any five fixed tanghible assets in details with...
A: Fixed assets are the long term assets that record in the balance sheet and showing balance at the en...
Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the near...
A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the invent...
Q: Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions o...
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...
Q: The tobacco companies have paid billions because of smoking-related illnesses. In particular, Philip...
A: 1. Tobacco companies manufacture harmful products that can cause illness and death in individuals. ...
Q: Koftown Flowers operates 25 food supermarkets. The company’s year- end is 31December 2019.The audit ...
A: Information is the data processed for the purpose of communication and taking decisions. There are v...
Q: Relling Corporation manufactures a drink bottle, model CL24. During 2017, Relling produced 210,000 b...
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to ...
Q: What is the order of the subtotals that appear on a multi-step income statement? a. Gross Profit, Op...
A: The multi-step income statement is reported in the below format: Particulars Amount $ Sales rev...
Q: Richard Palm is the accounting clerk of Olive Limited. He uses the source documents such as purchase...
A: Financial Reporting System: The financial reporting system (FRS) overview of the financial resources...
Q: Meals To Go operates a chain of 10 hospitals in the Los Angeles area. Its central food-catering faci...
A: The alternative cost-based price per me. that can be proposed and is more acceptable and the steps t...
Q: What is a subsidiary’s functional currency?a. The parent’s reporting currency.b. The currency used b...
A: Where foreign currency is the primary currency of the foreign entity operating environment, it can b...
Q: Kindly help me with the assignment provided below.
A: Accounting process includes preparation of journal entries, posting them into ledger accounts, prepa...
Q: Journalizing adjusting entries and analyzing their effect on the income statement The following data...
A:
Q: To recover the waste heat from the processed fluid, a chemical industry planned to invest in a heat ...
A: a. Calculate Incremental investment returns. Suggestion: Heat Exchanger 1 should be purchased as it...
Q: Compute Budgeted variable manufacturing overhead costs per machine-hour
A: Fixed budget variable manufacturing overhead costs = $76,860 Flexible budget variable manufacturing ...
Q: Assume that a perpetual inventory system is used and the records indicate that$191,400 of merchandis...
A: Amount of inventory Shrinkage = Inventory as per records - Physical count inventory = $191,400 - $18...
Q: The conversion cycle of the company is triggered by a report from the warehouse. When the quantity o...
A: The term conversion cycle refers to the time period required for completing a production batch start...
Q: How are gains and losses on financial instruments used to hedge the net investment in a foreign oper...
A: Financial Instruments: A financial instrument is a financial asset having an economic value that is ...
Q: Choose the correct. Which of the following is not a reason for the popularity of partnerships as a l...
A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed ...
Q: (a) Describe rational decision making. (b) Cite 3 reasons for and 3 reasons against rebuilding Green...
A: A rational decision making refers to a type of decision making under which the decision is made base...
Q: Hughes Inc. has a wholly owned subsidiary in Canada that previously had been determined as having th...
A: Foreign Currency Financial Statements: Foreign currency financial statements are those statements...
Q: Differentiate the cash basis of accounting from the accrual basis of accounting.
A: Difference between cash basis and accrual basis: Cash basis accounting: Under this method, income o...
Q: The authoritative status of the conceptual framework is as follows. a. It is used when there is n...
A: International Financial Reporting Standards (IFRS): IFRS are a set of international accounting stand...
Q: Vargo Company has bonds payable outstanding in the amount of $500,000, and the Premium on Bonds Paya...
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from...
Q: Cash of $60,000 is transferred from the general fund to the debt service fund. What is reported on t...
A:
Q: Why are publicly traded companies in the United States required to prepare interim reports on a quar...
A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accoun...
Q: Explain the concept of cost allocation as it pertains to property, plant, and equipment and intangib...
A: Property, Plant & Equipment (PPE) includes the following assets namely: Land Plant and Building...
Q: For a company emerging from bankruptcy, how are liabilities (other than deferred income taxes) repor...
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as liab...
Q: the question is in the attached pictures
A: Hi student Since the question has multiple sub parts, we are answering only first three sub parts.
Q: The company president does not believe that the formula should be altered for fear it will tarnish t...
A: Target costing is a cost accounting approach in which companies set targets for costs based on the p...
Q: What financial statement are property, plant, and equipment reported on, and how?
A: Property, Plant and Equipment (PPE) refers to all the tangible fixed assets or properties that a bus...
Q: Accounting information provides useful information about business transactions and events. Those who...
A: Since we only answer up to 3 sub-parts of question 1, we’ll answer the first 3. Please resubmit the ...
Q: On January 1, 2016, Knorr Corporation issued $800,000 of 6%, 5-year bonds dated January 1, 2016. The...
A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to...
Q: Prepare the necessary adjusting entries for Johnstone Controls at the end of its December 31, 2021, ...
A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to...
Q: What price should Brady charge for a room-night? What is the markup as a percentage of the full cost...
A:
Q: Milo Manufacturing uses straight-line depreciation for financial statement reporting and is able to ...
A:
Q: The purpose of presenting comparative information in the transition to IFRS is: a. to ensure that...
A: International Financial Reporting Standards (IFRS) They are commonly known as IFRS. It is a set of ...
Q: The following data (in thousands of dollars) have been taken from the accounting records of Larop Co...
A:
Q: Define Simple interest.
A: Simple interest: The amount of interest computed on the principal amount for a time period at a give...
Q: Able Equipment entered into an arrangement to provide M. T. Bin Wholesale’s data center with Able’s ...
A: Lease: It is an agreement between the owner of an asset and a tenant where the owner agrees to ren...
Q: Where there is evidence that the utility of inventory goods, as part of their disposal in the ordina...
A:
Q: The following data was provided by Beximco Corporation: Sales .........................................
A:
Q: On January 1, 2020, Richards Inc. had cash and common stock of $60,000. At that date, the company ha...
A:
Q: On December 1, 2017, a state government awards a city government a grant of $1 million to be used sp...
A: Definition: The revenue recognition principle: The revenue recognition principle refers to the rev...
Future Value of Annuity Using appropriate tables, solve the following future value of annuity problems:
Required
1. What is the future value on December 31, 2016 of seven cash flows of $10,000, with the first cash payment being made on December 31, 2010 and interest at 12% being compounded annually?
2. What is the future value on December 31, 2017 of seven cash flows of $10,000, with the first cash payment made on December 31, 2010 and interest at 12% being compounded annually?
Step by step
Solved in 2 steps
- Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1, EVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. Annuity Payment $ 3,700 Annual Rate Interest Period Compounded Invested Future Value of Annuity 7.0% Semiannually 9 years 2. 6,700 8.0% Quarterly 5 years 3. 5,700 12.0% Annually 6 yearsFuture Value of an Annuity Calculate the future value. Present Value Interest Rate $0.00 10% monthly Payments $475.00 monthly Number of Payments per Year: PY= a. Determine the annuity type. O Ordinary Simple Annuity O Ordinary General Annuity O Simple Annuity Due O General Annuity Due b. Identify the following pieces of information to be used to calculate the future value of the annuity. Periodic Payment: PMT Total Number of Payments: N= Annual Interest Rate: r = Number of Compoundings per Year: CY c. Determine the future value of the annuity. Timing of Payment Years End 19 = Future Value ???
- The present value of an annuity is the amount needed now so that desired annuity payments may be made in the future. In this scenario annuity payments will be made at the beginning of each month. Thus, this is an annuity due. To find the present value of this annuity, the amount of money that should be deposited in an account now, the interest rate per period must first be found. The interest rate per period is calculated using the nominal, or annual, rate and the number of periods per year as follows. interest rate per period = nominal rate periods per year The rate was given to be 6%. Interest is compounded monthly, or 12 times per year. Find the interest rate per period. interest rate per period = nominal rate periods per year = % 12 = % The total number of compounding periods will be 1 less than the number of years annuity payments will be made multiplied by the number of compounding periods per year. There are 12…Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Annuity Payment Annual Rate Interest Compounded Period Invested Future Value of Annuity 1. $3,100 8.0 % Semiannually 9 years $79,500.77 2. 6,100 10.0 % Quarterly 5 years 3. 5,100 12.0 % Annually 6 yearsCalculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Annual Payment Rate $4,700 6.0 % 8.0 % 7,700 6,700 10.0 % Show Transcribed Text 1. 2. 3. Annuity Annual Payment Rate Interest Compounded Quarterly Annually Semiannually $ 5,700 Interest Compounded 8.0 % Quarterly 10,700 11.0% Annually 4,700 10.0 % Semiannually Period Invested 5 years 6 years 9 years Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) $ Period Invested 2 years 5 years 3 years Future Value of Annuity 172,892.28 Present Value of Annuity
- Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon here 9 in order to copy the contents of the data table below into a spreadsheet.) Amount of annuity Interest rate Deposit period (years) $6,000 8% 10 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due-is preferable as an investment? Explain why. ..... a. (1) The future value of the ordinary annuity is $ (Round to the nearest cent.) (2) The future value of the annuity due is $ (Round to the nearest cent.) b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity is preferable as an investment? (Select the best answer below.) Ordinary annuity, because it yields a greater future value. Annuity due, because it yields a greater future value.Solve the problem. solve using the formula for the future value of an ordinary annuity. given the monthly payment, capital, the annual interest rate, are, and the number of monthly payments, antique, find the future value of the annuity. R=$1300; r = 8.5%; nt= 17 A) $24,398.04 B) $17,548.36 C) $23,397.81 D) $24,198.38 Please search only correct answer as I am | paying for this and I keep receiving incorrect oneFuture value of an annuity Using the values below, answer the questions that follow. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Amount of annuity $5,000 Interest rate 6% Deposit period (years) 7 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due is preferable as an investment? Explain why.
- Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream. Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 ? $0.00 $600.00 $2,386.09 18 ? $13,278.73 $354.57 $0.00 40 ? $0.00 $1,872.79 $40,000.00 60 ? $266,564.09 $500.00 $0.00 Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 nothing% (Round to two decimal places.) $0.00 $600.00 $2,386.09 18 nothing% (Round to two decimal places.) $13,278.73 $354.57 $0.00 40 nothing% (Round to two decimal places.) $0.00 $1,872.79 $40,000.00…For each of the following situations involving annuities, solve for the unknown (?). Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) Present Value Annuity Amount i n1. ? $ 3,000 8% 52. $ 242,980 75,000 ? 43. 161,214 20,000 9 ?4. 500,000 80,518 ? 85. 250,000 ? 10 4 Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $12,000 in student loans. She asks for your help in determining the…Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Amount of annuity $4,000 Interest rate 5% Deposit period (years) 11 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due-is preferable as an investment? Explain why. a. (1) The future value of the ordinary annuity is $. (Round to the nearest cent.) C