ch06_sol

# ch06_sol - Name Solution Date Instructor Course...

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f2c1e3d6dd6fb1238f5d3f5205a8e73544956f7c.xlsx, Exercise 6-2 Solution, Page 1 of 8, 03/29/2012, 01:31:48 Name: Solution Date: Instructor: Course: \$30,000 at 8% annual interest, leaving the money 8 years. At the end of the 8 years, Lyle withdrew the accumulated amount of money. Instructions: Simple interest of \$30,000 × 8% per year × 8 years = \$19,200 Principal \$30,000 Total withdrawn \$49,200 Interest compounded annually—Future value of 1 @ 8% for 8 periods = 1.85093 Amount invested: \$30,000 Total withdrawn: \$55,527.91 Interest compounded annually—Future value of 1 @ 4% for 16 periods = 1.87298 Amount invested: \$30,000 Total withdrawn: \$56,189.44 Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E6-2 (Simple and Compound Interest Computations) Lyle O’Keefe invests (a) Compute the amount Lyle would withdraw assuming the investment earns simple interest. (b) Compute the amount Lyle would withdraw assuming the investment earns interest compounded annually. (c) Compute the amount Lyle would withdraw assuming the investment earns interest compounded semi-annually.

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f2c1e3d6dd6fb1238f5d3f5205a8e73544956f7c.xlsx, Exercise 6-2, Page 2 of 8, 03/29/2012, 01:31:49 Name: Date: Instructor: Course: \$30,000 at 8% annual interest, leaving the money 8 years. At the end of the 8 years, Lyle withdrew the accumulated amount of money. Instructions: Text Title Formula Text Title Amount Text Title Formula Text Title Formula Text Title Amount Text Title Formula Text Title Formula Text Title Amount Text Title Formula Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E6-2 (Simple and Compound Interest Computations) Lyle O’Keefe invests (a) Compute the amount Lyle would withdraw assuming the investment earns simple interest. (b) Compute the amount Lyle would withdraw assuming the investment earns interest compounded annually. (c) Compute the amount Lyle would withdraw assuming the investment earns interest compounded semi-annually.
f2c1e3d6dd6fb1238f5d3f5205a8e73544956f7c.xlsx, Exercise 6-3 Solution, Page 3 of 8, 03/29/2012, 01:31:50 Name: Solution Date: Instructor: Course: \$9,000 at the end of 5 periods at 8% compounded interest? The future value of \$9,000 at 8% interest for 5 periods is: \$13,223.95 \$9,000 due 8 periods hence, discounted at 11% The future value of \$9,000 at 11% interest for 8 periods is: \$3,905.34 15 periodic payments of \$9,000 each made at the end of each period and compounded at 10% ?

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## This note was uploaded on 03/28/2012 for the course ACC 401 taught by Professor O during the Spring '12 term at Regis University.

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ch06_sol - Name Solution Date Instructor Course...

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