PSC6 - PROBLEM SET CHAPTER 6 Name: _ Date: _ Accounting...

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PROBLEM SET – CHAPTER 6 Name: __________________________ Date: _____________ Accounting 2303 1. On the right are six diagrams representing six different present and future value concepts stated on the left. Identify the diagrams with the concepts by writing the identifying letter of the diagram on the blank line at the left. Assume n = 4 and i = 8%. Use blanks at the bottom of this page (1-6) rather than ones on the left to answer . ( 3 points) ANSWERS: _____ 1. _____ 2. _____ 3. ______ 4. ______ 5. ______ 6. Page 1
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2. Find the present value of an investment in equipment if it is expected to provide annual savings of $10,000 for 10 years and to have a resale value of $25,000 at the end of that period. Assume an interest rate of 9% and that savings are realized at year end. Your answer must be supported with calculations . ( 5 points)
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3. How much must be invested now to receive $20,000 for ten years if the first $20,000 is received today and the rate is 8%? Your answer must be supported with
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This note was uploaded on 09/04/2009 for the course ACNT 2303 taught by Professor Haywood during the Spring '09 term at Lone Star College.

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PSC6 - PROBLEM SET CHAPTER 6 Name: _ Date: _ Accounting...

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