ch06_sol

# B compute the amount lyle would withdraw assuming the

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(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 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.
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.

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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.
f2c1e3d6dd6fb1238f5d3f5205a8e73544956f7c.xlsx, Problem P6-2 Solution, Page 7 of 10, 03/03/2016, 09:54:22

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