Answers to Practice Problems on Long-term Decision Making -...

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The University of Texas at AustinMcCombs School of Business, Business Foundations ProgramACC 310F: Foundations of AccountingAnswers to Practice Problems on Long-term Decision Making1.You plan on buying a new home in four years and want to have a $15,000 down payment at that time.If the bank pays interest of 6 percent, how much should you deposit today to reach your goal?
2.Ferris Company signed a lease for an office building for a period of five years.Under the leaseagreement, a security deposit of $8,000 is made.The deposit will be returned at the expiration of thelease with interest compounded at 4% per year.What amount will Ferris receive at the time the leaseexpires?
3.Welz Company is considering investing in an annuity contract that will return $25,000 annually at theend of each year for four years.What amount should Welz Company pay for this investment if it earnsa 8% return?

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Chapter 16 / Exercise 16-8
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Fall
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Verduzco
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CFIN
The document you are viewing contains questions related to this textbook.
Chapter 16 / Exercise 16-8
CFIN
Besley
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