Question

Determine the present value of the following single amounts (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.): Future Amount i = n = Present Value

1. $20,000 7% 10

2. $14,000 8% 12

3. $25,000 12% 20

4. $40,000 10% 8

Answer #1

Case 1:

Present Value = Future Value * PV of $1 (i%, n)

Present Value = $20,000 * PV of $1 (7%, 10)

Present Value = $20,000 * 0.5083

Present Value = $10,166

Case 2:

Present Value = Future Value * PV of $1 (i%, n)

Present Value = $14,000 * PV of $1 (8%, 12)

Present Value = $14,000 * 0.3971

Present Value = $5,559

Case 3:

Present Value = Future Value * PV of $1 (i%, n)

Present Value = $25,000 * PV of $1 (12%, 20)

Present Value = $25,000 * 0.1037

Present Value = $2,593

Case 4:

Present Value = Future Value * PV of $1 (i%, n)

Present Value = $40,000 * PV of $1 (10%, 8)

Present Value = $40,000 * 0.4665

Present Value = $18,660

Determine the present value of the following single amounts (FV
of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided. Round your final answers to nearest
whole dollar amount.):
FV : 20000
i=7%
n=10
present value= ??
FV : 14000
i=8%
n=12
present value= ??
FV : 25000
i=12%
n=20
present value= ??
FV : 40000
i=10%
n=8
present value= ??

Determine the present value of the following single amounts (FV
of $1, PV of $1, FVA of $1, PVA of $1,FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables provided. Invested
Amount i = n = Future Value 1. $15,500 5% 12 2. $23,000 5% 6 3.
$35,000 11% 18 4. $56,000 6% 14

Canliss Mining Company borrowed money from a local bank. The
note the company signed requires five annual installment payments
of $20,000 beginning one year from today. The interest rate on the
note is 9%.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1
and PVAD of $1) (Use appropriate factor(s) from the tables
provided.)
What amount did Canliss borrow? (Round your final answers
to nearest whole dollar amount.)
Table or
calculator function:
Payment:
n =...

Using the appropriate present value table and assuming a 12%
annual interest rate, determine the present value on December 31,
2018, of a five-period annual annuity of $4,400 under each of the
following situations: (FV of $1, PV of $1, FVA of $1, PVA of $1,
FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from
the tables provided.)
1.The first payment is received on December 31,
2019, and interest is compounded annually.
2.The first payment is received on...

On January 1, 2018, Darnell Window and Pane issued $18.7 million
of 10-year, zero-coupon bonds for $7,209,660. (FV of $1, PV of $1,
FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)

A company issued 6%, 15-year bonds with a face amount of $67
million. The market yield for bonds of similar risk and maturity is
6%. Interest is paid semiannually. At what price did the bonds
sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1) (Use appropriate factor(s) from the tables
provided. Enter your answers in whole dollars. Round final answers
to the nearest whole dollar.)

On January 1, 2018, Shirley Corporation purchased 10% bonds
dated January 1, 2018, with a face amount of $13 million. The bonds
mature in 2027 (10 years). For bonds of similar risk and maturity,
the market yield is 12%. Interest is paid semiannually on June 30
and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of $1) (Use appropriate factor(s) from the tables
provided.)
Required: Determine the price of...

Brief Exercise 14-4 Determining the price of bonds [LO14-2]
A company issued 8%, 10-year bonds with a face amount of $100
million. The market yield for bonds of similar risk and maturity is
6%. Interest is paid semiannually. At what price did the bonds
sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1) (Use appropriate factor(s) from the tables
provided. Enter your answers in whole
dollars.)

On January 1, 2018, Shirley Corporation purchased 12% bonds
dated January 1, 2018, with a face amount of $24 million. The bonds
mature in 2027 (10 years). For bonds of similar risk and maturity,
the market yield is 16%. Interest is paid semiannually on June 30
and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of $1) (Use appropriate factor(s) from the tables
provided.) Required: Determine the price of...

Present and future value tables of $1 at 3% are presented
below:
N
FV $1
PV $1
FVA $1
PVA $1
FVAD $1
PVAD $1
1
1.03000
0.97087
1.0000
0.97087
1.0300
1.00000
2
1.06090
0.94260
2.0300
1.91347
2.0909
1.97087
3
1.09273
0.91514
3.0909
2.82861
3.1836
2.91347
4
1.12551
0.88849
4.1836
3.71710
4.3091
3.82861
5
1.15927
0.86261
5.3091
4.57971
5.4684
4.71710
6
1.19405
0.83748
6.4684
5.41719
6.6625
5.57971
7
1.22987
0.81309
7.6625
6.23028
7.8923
6.41719
8
1.26677
0.78941
8.8923
7.01969
9.1591...

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