acc201quiz - Question 1 0 out of 1 points Harry Morgan...

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Question 1 0 out of 1 points Harry Morgan plans to make 30 quarterly deposits of $200 into a savings account. The first deposit will be made immediately. The savings account pays interest at an annual rate of 8%, compounded quarterly. How much will Harry have accumulated in the savings account at the end of the seven and a half-year period? (Use the appropriate table in the text.) Selected Answer: Correct Answer: Question 2 0 out of 1 points Assume the same data as in question 10, except that the installment payments begin immediately. What is the required annual installment payment? (Use the appropriate table in the text.) Selected Answer: Correct Answer: Question 3 0 out of 1 points The Richards Company purchased a machine for $5,000 down and $300 a month payable at the end of each of the next 36 months. How would the cash price of the machine be calculated, assuming the annual interest rate is given? Selected Answer:
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Correct Answer: periods. Question 4 0 out of 1 points On March 31, 2009, the Freeman Company leased a machine. The lease agreement requires Freeman to pay 10 annual payments of $6,000 on each March 31, with the first payment due on March 31, 2009. Assuming an interest rate of 10% and that this lease is treated as an installment sale, Freeman will initially value the machine by multiplying $6,000 by which of the following factors? Selected Answer: Correct Answer: Question 5 0 out of 1 points Sandra wants to calculate how much money she needs to deposit today into a savings account which earns 5% in order to be able to withdraw $3,000 at the end of each of the next 6 years. She should use which present value concept? Selected Answer: Correct Answer: Question 6 0 out of 1 points The Stacey Mack Corporation used the expected cash flow approach to determine the present value of a future obligation to
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be paid in four years. Estimated future payment possibilities were as follows: Possible payment Probability $50 million 20% 70 million 40% 90 million 40% The risk-free interest rate is 5%. What is the estimated present value of the future obligation? Selected Answer: Correct Answer: Question 7 0 out of 1 points Given a set of present value tables, an annual interest rate, the dollar amount of equal payments made, and the number of semiannual payments, what other information is necessary to calculate the present value of the series of payments? Selected Answer: [None Given] Correct Answer: The timing of the payments (whether they are at the beginning or end of the period). Question 8 0 out of 1 points The Sanchez Company purchased a delivery truck on February 1, 2006. The purchase agreement required Sanchez to pay the total amount due of $15,000 on February 1, 2007. Assuming an 8% rate of interest, the calculation of the price of the truck
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would involve multiplying $15,000 by the: Selected Answer: Correct Answer: Question 9 0 out of 1 points Wellman Company is considering investing in a two-year project. Wellman's required
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This note was uploaded on 10/16/2011 for the course ACCOUNTING 201 taught by Professor Evans during the Spring '11 term at Thomas Edison State.

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acc201quiz - Question 1 0 out of 1 points Harry Morgan...

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