ACCT251E6-1through-7 - EXERCISE 6-1(5–10 minutes(a(b Rate of Interest Number of Periods 1 a 9 9 b 2 20 c 5 30 2 a 9 25 b 4 30 c 3 28 EXERCISE

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Unformatted text preview: EXERCISE 6-1 (5–10 minutes) (a) (b) Rate of Interest Number of Periods 1. a. 9% 9 b. 2% 20 c. 5% 30 2. a. 9% 25 b. 4% 30 c. 3% 28 EXERCISE 6-2 (5–10 minutes) (a) Simple interest of $2,400 ($30,000 X 8%) per year X 8. . $19,200 Principal.............................................................................. 30,000 Total withdrawn........................................................ $49,200 (b) Interest compounded annually—Future value of 1 @ 8% for 8 periods.................................................... 1.85093 X $30,000 Total withdrawn........................................................ $55,527.90 (c) Interest compounded semiannually—Future value of 1 @ 4% for 16 periods.................................... 1.87298 X $30,000 Total withdrawn......................................................... $56,189.40 EXERCISE 6-3 (10–15 minutes) (a) $9,000 X 1.46933 = $13,223.97....
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ACCT251E6-1through-7 - EXERCISE 6-1(5–10 minutes(a(b Rate of Interest Number of Periods 1 a 9 9 b 2 20 c 5 30 2 a 9 25 b 4 30 c 3 28 EXERCISE

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