# Question: For each of the following cases indicate a to what

For each of the following cases, indicate (a) to what interest rate columns and

(b) to what number of periods you would refer in looking up the discount rate.

(1) In Table 3 (present value of 1):

(2) In Table 4 (present value of an annuity of1):

(b) to what number of periods you would refer in looking up the discount rate.

(1) In Table 3 (present value of 1):

(2) In Table 4 (present value of an annuity of1):

**View Solution:**## Answer to relevant Questions

(a) What is the present value of $28,000 due 9 periods from now, discounted at 10%?(b) What is the present value of $28,000 to be received at the end of each of 6 periods, discounted at 9%?Kirby Railroad Co. is about to issue $300,000 of 10-year bonds paying a 9% interest rate, with interest payable semiannually. The discount rate for such securities is 8%. How much can Kirby expect to receive for the sale of ...If Barbara Oxford invests $4,172.65 now and she will receive $10,000 at the end of 15 years, what annual rate of interest will Barbara earn on her investment? (Hint: Use Table 3.)Using a financial calculator, provide a solution to each of the following situations.(a) Tina Deboer owes a debt of $42,000 from the purchase of her new sport utility vehicle. The debt bears annual interest of 7.8% ...Sprague Corporation purchased debt investments for $40,800 on January 1, 2014. On July 1, 2014, Sprague received cash interest of $1,660. Journalize the purchase and the receipt of interest. Assume no interest has been ...Post your question