B compute the amount lyle would withdraw assuming the

This preview shows page 3 - 8 out of 10 pages.

(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.
Image of page 3

Subscribe to view the full document.

f2c1e3d6dd6fb1238f5d3f5205a8e73544956f7c.xlsx, Exercise 6-2, Page 4 of 10, 03/03/2016, 09:54:22 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.
Image of page 4
f2c1e3d6dd6fb1238f5d3f5205a8e73544956f7c.xlsx, Exercise 6-3 Solution, Page 5 of 10, 03/03/2016, 09:54:22 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% ? The future value of $9,000 payments at 10% interest for 15 periods is: $285,952.34 $9,000 to be received at the end of each of 20 periods, discounted at 5% compound interest? The present value of $9,000 payments at 5% interest for 20 periods is: $112,159.89 Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E6-3 (Computation of Future Values and Present Values) Using the appropriate interest table or Excel formula, answer each of the following questions: (Each case is independent of the others.) (a) What is the future value of (b) What is the present value of (c) What is the future value of (d) What is the present value of Note: Students using the tables or other sources of present and future values may have values slightly different due to rounding.
Image of page 5

Subscribe to view the full document.

f2c1e3d6dd6fb1238f5d3f5205a8e73544956f7c.xlsx, Exercise 6-3, Page 6 of 10, 03/03/2016, 09:54:22 Name: Date: Instructor: Course: $9,000 at the end of 5 periods at 8% compounded interest? Text as appropriate. Fomula $9,000 due 8 periods hence, discounted at 11% Text as appropriate. Formula 15 periodic payments of $9,000 each made at the end of each period and compounded at 10% ? Text as appropriate. Formula $9,000 to be received at the end of each of 20 periods, discounted at 5% compound interest? Text as appropriate. Formula Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E6-3 (Computation of Future Values and Present Values) Using the appropriate interest table or Excel formula, answer each of the following questions: (Each case is independent of the others.) (a) What is the future value of (b) What is the present value of (c) What is the future value of (d) What is the present value of Note: Students using the tables or other sources of present and future values may have values slightly different due to rounding.
Image of page 6
f2c1e3d6dd6fb1238f5d3f5205a8e73544956f7c.xlsx, Problem P6-2 Solution, Page 7 of 10, 03/03/2016, 09:54:22
Image of page 7

Subscribe to view the full document.

Image of page 8
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern