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Week 5 Individual
1
Assignments from text
ACC/421
Jennifer Luttrell
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E65
(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
E610
(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.
 Fall '09
 Smith

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