Question

If Colleen Mooney invests $4,527.13 now and she will receive $14,300 at the end of 17 years, what annual rate of interest will Colleen earn on her investment? (Hint: Use Table 3.) (Round answer to 0 decimal places, e.g. 25%.) Click here to view the factor table Future Value of 1 Click here to view the factor table Future Value of an Annuity of 1 Click here to view the factor table Present Value of 1 Click here to view the factor table Present Value of an Annuity of 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Annual rate of interest %

Answer #1

**The Annual rate of
interest = “ 7% “**

Here, We have the Investment Value, Future Value of the Investment and Number of years of Investment. We need to calculate the Interest Rate (r) at which $4,527.13 become $14,300 at the end of 17 Years

Future Value = Present Value x Future Value Factor

$14,300 = $4,527.13 x (FVF r , 17 Years )

(FVF r , 17 Years ) = $14,300 / $4,527.13

(FVF r , 17 Years ) = 3.15873

Future Value Factor = 3.15873

From the Future Value Factor Table, We can find that the Interest Rate corresponding to the factor of 3.15873 for 17 Years will be 7%

If Patricia Johnson invests $6,109.98 now and she will receive
$19,300 at the end of 17 years, what annual rate of interest will
Patricia earn on her investment? (Hint: Use Table 3.)
(Round answer to 0 decimal places, e.g.
25%.)
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
Annual rate of interest
Gary King invests $9,527.27 now for a series of $1,400 annual
returns beginning one year...

Joanne Quick made an investment of $23,016.97. From this
investment, she will receive $2,600 annually for the next 13 years
starting one year from now. Click here to view the factor table
Future Value of 1 Click here to view the factor table Future Value
of an Annuity of 1 Click here to view the factor table Present
Value of 1 Click here to view the factor table Present Value of an
Annuity of 1 (For calculation purposes, use 5...

Concord Railroad Co. is about to issue $330,000 of 8-year bonds
paying an 9% interest rate, with interest payable semiannually. The
discount rate for such securities is 8%.
Click below to view the factor tables.
Table 1. Future Value of 1
Table 2. Future Value of an Annuity of 1
Table 3. Present Value of 1
Table 4. Present Value of an Annuity of 1
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
How...

Waterway Railroad Co. is about to issue $460,000 of 6-year bonds
paying an 7% interest rate, with interest payable semiannually. The
discount rate for such securities is 8%.
Click below to view the factor tables.
Table 1. Future Value of 1
Table 2. Future Value of an Annuity of 1
Table 3. Present Value of 1
Table 4. Present Value of an Annuity of 1
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
In...

Wildhorse Co. earns 9% on an investment that will return
$530,000 9 years from now.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
What is the amount Wildhorse should invest now to earn this rate of
return? (Round answer to 2 decimal places, e.g.
5,275.25.)
Wildhorse Co. should invest
$enter an amount to be invested in dollars rounded to 2 decimal
places
Blossom Company earns 4% on...

Coronado Altidore invested $9,500 at 6% annual interest, and
left the money invested without withdrawing any of the interest for
12 years. At the end of the 12 years, Coronado withdrew the
accumulated amount of money.
Click below to view the factor tables.
Table 1. Future Value of 1
Table 2. Future Value of an Annuity of 1
Table 3. Present Value of 1
Table 4. Present Value of an Annuity of 1
(For calculation purposes, use 5 decimal places...

Cullumber Company is about to issue $336,000 of 9-year bonds
paying an 11% interest rate, with interest payable annually. The
discount rate for such securities is 10%.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
How much can Cullumber expect to receive for the sale of these
bonds? (Round answer to 0 decimal places, e.g.
2,575.)
Cullumber can expect to receive
$enter a dollar amount to be...

(a) What is the present value of $29,400 due 8
periods from now, discounted at 6%? (Round answer to 2
decimal places, e.g. 25.25.)
(b) What is the present value of $29,400 to be
received at the end of each of 12 periods, discounted at 12%?
(Round answer to 2 decimal places, e.g.
25.25.)
------------------
Ivanhoe Company is about to issue $298,700 of 6-year bonds
paying an 11% interest rate, with interest payable semiannually.
The discount rate for such securities...

Sunland Company issued 6%, 9-year, $290,000 par value bonds that
pay interest annually on April 1. The bonds are dated April 1,
2022, and are issued on that date. The discount rate of interest
for such bonds on April 1, 2022, is 8%.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
What cash proceeds did Sunland receive from issuance of the bonds?
(Round answer to 0 decimal...

vanhoe Company is about to issue $344,000 of 6-year bonds paying
an 11% interest rate, with interest payable annually. The discount
rate for such securities is 10%.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
How much can Ivanhoe expect to receive for the sale of these bonds?
(Round answer to 0 decimal places, e.g.
2,575.)
Ivanhoe can expect to receive
$enter a dollar amount to be...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 4 minutes ago

asked 13 minutes ago

asked 38 minutes ago

asked 39 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago