Accounting Homework 6 Answers (Recovered)

Accounting Homework 6 Answers (Recovered) - Answers for...

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Answers for 24NV104708 1 . PV = FV x PVIF (k,n) where: PV - present value FV - future value PVIF - present value interest factor of $1 k - discount rate or required rate of return n - number of period or years PV = $5,000 x PVIF (5%,4) PV = $5,000 x 0.8227 PV = $ 4,114 2 . FV = A x FVIFA (k,n) where: FV - future value A - annual deposit (assuming beginning of the year) FVIFA - future value interest factor of annuity $1 k - discount rate or required rate of return n - number of period or years FV = $6,000 x FVIFA (4%,5) FV = $6,000 x 5.6330 FV = $ 33,798 3 . PV = A x PVIFA (k,n) where: PV - present value A - annual payment (assuming beginning of the year) PVIFA - present value interest factor of annuity $1 k - discount rate or required rate of return n - number of period or years $250,000 = $18,000 x PVIFA (k,30) PVIFA (k,30) = $250,000 / $18,000 PVIFA (k,30) = 13.8889 At 30 periods, 13.8889 is between 5% and 6%. Using interpolation, approximate interest is 5.91636%.
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End of Annual Annual payment applied to Balance of Year Payment Interest Principal Principal 0 $ 250,000.00
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Accounting Homework 6 Answers (Recovered) - Answers for...

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