# Chapter 6.6docx - Chapter 6 6 The following situations...

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Chapter 66The following situations should be considered independently. (FV of \$1,PV of \$1,FVA of \$1,PVA of \$1,FVAD of \$1andPVAD of \$1)(Use appropriate factor(s) from the tablesprovided.)1.John Jamison wants to accumulate \$68,205 for a down payment on a small business. He willinvest \$35,000 today in a bank account paying 10% interest compounded annually.Approximately how long will it take John to reach his goal?
2.The Jasmine Tea Company purchased merchandise from a supplier for \$37,698. Payment wasa noninterest-bearing note requiring Jasmine to make seven annual payments of \$8,000beginning one year from the date of purchase. What is the interest rate implicit in thisagreement?
3.Sam Robinson borrowed \$19,000 from a friend and promised to pay the loan in 10 equalannual installments beginning one year from the date of the loan. Sam’s friend would like to
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