At the end of two years, what will be the balance in a savings account paying 6%
annually if $20,000 is deposited today?
The future value of one at 6% for one
period is 1.06.
Henson Company wishes to accumulate $500,000 by May 1, 2012 by making 8
equal annual deposits beginning May 1, 2004 to a fund paying 8% interest
What is the required amount of each deposit?
What amount should be recorded as the cost of a machine purchased December
31, 2003, which is to be financed by making 8 annual payments of $8,000 each
beginning December 31, 2004?
The applicable interest rate is 8%.
Dyer Co. has a machine that cost $600,000. It is to be leased for 20 years with
rent received at the beginning of each year. Dyer wants a return of 10%.
Calculate the amount of the annual rent.
Find the present value of an investment in plant and equipment if it is expected to
provide annual earnings of $63,000 for 15 years and to have a resale value of
$120,000 at the end of that period. Assume a 10% rate and earnings are
received at year end.