week 5

# week 5 - Week 5 Individual 1 Assignments from text ACC/421...

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Week 5 Individual 1 Assignments from text ACC/421 Jennifer Luttrell

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Week 5 Individual 2 E6-5 (Computation of Present Value) Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods. (a) \$30,000 receivable at the end of each period for 8 periods compounded at 12%. 30,000 * 4.96 = \$149,029.20 (b) \$30,000 payments to be made at the end of each period for 16 periods at 9%. 30,000 * 8.3 = \$249,376.80 (c) \$30,000 Payable at the end of the seventh, eighth, ninth, and tenth periods at 12% 30,000 * 3.03 * .50663 = \$46, 164.30 E6-10 (Unknown Periods and Unknown Interest Rate) consider the following independent situations. (a) Mike Finley wishes to become a millionaire. His money market fund has a balance of \$92,296 and has a guaranteed interest rate of 10%. How many years must Mike leave that balance in the fund in order to get his desired \$1,000,000? The number of interest periods is calculated by first dividing the future value of
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## This note was uploaded on 01/13/2011 for the course ACC 421 taught by Professor Smith during the Fall '09 term at Auckland.

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week 5 - Week 5 Individual 1 Assignments from text ACC/421...

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