ch6 - Ch6 Assignment PostLecture,Question1

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Ch6 Assignment Post-Lecture, Question 1 Correct! Present value-based measurements apply to all of the options except stockholders' equity.  Accounting topics where present value-based accounting measurements are relevant include all of the  following except Sinking funds. Stockholders' equity. Leases. Long-term assets. Post-Lecture, Question 2 Correct! Simple interest is [$10,000 + ($10,000 x .05 x 5)] $12,500, and compound interest is ($10,000 X  1.05 X 1.05 X 1.05 X 1.05 X 1.05) $12,763.      Sam Savink invests $10,000 at 5% annual interest. How much money has accumulated after five years,  assuming simple interest and compound interest, respectively? $12,500 and $12,763. Post-Lecture, Question 3 Correct! The present value of a dollar is always less than 1, therefore C is the correct answer.  The figure 0.94232 is taken from the column marked 2% and the row marked three periods in a certain interest  table. From what interest table is this figure taken? Future value of 1 Future value of annuity of 1 Present value of annuity of 1 Present value of 1 Post-Lecture, Question 5 Correct! By multiplying the last available value, 1.469 by 1.08, the correct value can be determined,  $6,346.08.  If $4,000 is put in a savings account today, what amount will be available six years from now? Given below are  the future value factors for 1 at 8% for one to five periods with interest compounded annually.  Periods Future Value of 1 at 8% 1 1.080 2 1.166 3 1.260
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4 1.360 5 1.469 $4,000 X 1.080 X 1.469 Post-Lecture, Question 6 Correct! Ann Ruth would divide $40,000 by the future value of a 5-year, 6% ordinary annuity of 1 factor.  40,000/FVF-OA(5,6%) Ann Ruth wants to invest a certain sum of money at the end of  each year for five years. The investment will  earn 6% compounded annually. At the end of five years, she will need a total of $40,000 accumulated. How  should she compute her required annual investment? $40,000 times the future value of a 5-year, 6% ordinary annuity of 1 factor. $40,000 times the present value of a 5-year, 6% ordinary annuity of 1 factor. $40,000 divided by the present value of a 5-year, 6% ordinary annuity of 1 factor. $40,000 divided by the future value of a 5-year, 6% ordinary annuity of 1 factor. BE6-5 Sally Medavoy will invest $8,000 a year for 20 years in a fund that will earn 12% annual interest. If the first  payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at  year-end, what amount will be in the fund in 20 years?  (Round the answers to 2 decimal places, e.g.  152,250.25. Hint: Use tables in text.)
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This note was uploaded on 11/08/2010 for the course ACCOUNTING 505 taught by Professor Pierce,b during the Fall '10 term at Winthrop.

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ch6 - Ch6 Assignment PostLecture,Question1

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