2002 Fall Accounting_011_exam_2___Fall_2002___Answer_Key

2002 Fall Accounting_011_exam_2___Fall_2002___Answer_Key -...

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Temple University Fox School of Business and Management Dr. Steven Balsam Accounting 011 Exam #2 November 6, 2002 Instructions: You have 50 minutes. Answer the questions on the pages provided and please remember to show all work so that you may receive partial credit. Also please put your name on each page in case the pages get separated. Good luck!
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Problem 1 (40 points) Calculate the following 1. Future value of $10,000 invested for 8 years (compounded annually) at a rate of 10% per year. 10,000 * 2.14359 = 21,435.90 2. Present value of $20,000 to be received 5 years in the future. Relevant discount rate is 8% per year, to be compounded annually. 20,000 * 0.68058 = 13,611.60 2
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100 * 25.48884 = 2,548.88 4. Present value of a bond promising quarterly payments of $1,000 at the end of each quarter for 5 years and 50,000 at the end of 5 years. The risk-adjusted discount rate is 8 percent per year. 1,000 * 16.35143 = 16,351.43
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2002 Fall Accounting_011_exam_2___Fall_2002___Answer_Key -...

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