Assume that you must estimate what the future value will be two years from today using the
Question:
Assume that you must estimate what the future value will be two years from today using the future value of 1 table (Table B.2). Which interest rate column and number-of-periods row do you use when working with the following rates?
1. 8% annual rate, compounded quarterly 2. 12% annual rate, compounded annually 3. 6% annual rate, compounded semiannually 4. 12% annual rate, compounded monthly (the answer for number-of-periods in part 4 is not shown in Table B.2)
Data from Table B-2
TABLE B.2†
Future Value of 1
Transcribed Image Text:
Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 0 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1 1.0100 1.0200 1.0300 1.0400 1.0500 1.0600 1.0700 1.0800 1.0900 1.1000 1.1200 1.1500 2 1.0201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449 1.1664 1.1881 1.2100 1.2544 1.3225 3 1.0303 1.0612 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.4049 1.5209 4 1.0406 1.0824 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.5735 1.7490 5 1.0510 1.1041 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.7623 20114 6 1.0615 1.1262 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.9738 2.3131 7 1.0721 1.1487 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.2107 2.6600 B 1.0829 1.1717 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.4760 3.0590 9 1.0937 1.1951 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731 3.5179 10 1.1046 1.2190 1.3439 1.4802 1.6289 1.7908 1.9672 21589 2.3674 2.5937 3.1058 4.0456 11 1.1157 1.2434 1.3842 1.5395 1.7103 1.8983 2.1049 2.3316 2.5804 28531 3.4785 4.6524 12 1.1268 1.2682 1.4258 1.6010 1.7959 2.0122 2.2522 2.5182 2.8127 3.1384 3.8960 5.3503 13 1.1381 1.2936 1.4685 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 3.4523 4.3635 6.1528 14 1.1495 1.3195 1.5126 1.9799 15 1.1610 16 1.1726 17 1.1843 1.4002 1.3459 1.5580 1.3728 1.6047 1.6528 2.0789 1.7317 1.8009 1.8730 2.1829 2.5404 1.9479 2.2920 2.2609 2.5785 29372 3.3417 3.7975 4.8871 7.0757 2.3966 2.7590 3.1722 3.6425 4.1772 5.4736 8.1371 2.9522 3.4259 3.9703 4.5950 6.1304 9.3576 2.6928 3.1588 3.7000 4.3276 5.0545 6.8660 10.7613 18 1.1961 1.4282 1.7024 20258 2.4066 2.8543 3.3799 3.9960 4.7171 5.5599 7.6900 12.3755 19 1.2081 1.4568 1.7535 2.1068 25270 3.0256 20 1.2202 1.4859 1.80611 2.1911 2.6533 25 1.2824 1.6406 2.0938 2.6658 3.3964 3.6165 4.3157 5.1417 3.2071 3.8697 4.6610 5.6044 4.2919 5.4274 6.1159 8.6128 14.2318 6.7275 9.6463 16.3665 6.8485 8.6231 10.8347 17.0001 32.9190 30 1.3478 1.8114 2.4273 3.2434 4.3219 5.7435 7.6123 10.0627 13.2677 17.4494 29.9599 66.2118 35 1.4166 1.9999 2.8139 3.9461 5.5160 7.6861 40 1.4889 2.2080 3.2620 4.8010 7.0400 10.2857 10.6766 14.9745 14.7853 20.4140 28.1024 21.7245 31.4094 45.2593 93.0510 52.7996 133.1755 267.8635
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (2 reviews)
Answered By
Ayush Jain
Subjects in which i am expert:
Computer Science :All subjects (Eg. Networking,Database ,Operating System,Information Security,)
Programming : C. C++, Python, Java, Machine Learning,Php
Android App Development, Xamarin, VS app development
Essay Writing
Research Paper
History, Management Subjects
Mathematics :Till Graduate Level
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial And Managerial Accounting Information For Decisions
ISBN: 9781259726705
7th Edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Question Posted:
Students also viewed these Business questions
-
Assume that you must make two-year-ahead future value estimates using the future value of 1 table. Which interest rate column and number-of-periods row do you use when working with the following...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
A firm has $180 million in annual sales; $40 million of inventory and $60 million of accounts receivable. What is the inventory turnover ratio?
-
Jim and Andrea Kerslake want to open a restaurant. In need of cash, they meet with their bank manager for a loan. With little knowledge of finance, the Kerslakes don't know how the lending process...
-
A publishing house offers a new book as standard or luxury edition and with or without a CD. The publisher analyzes the first 1000 orders: Let \(A(B)\) the random event that a book, randomly choosen...
-
What is a SystemOperations Concept? Identify examples of its UCs.
-
Consider the following data for November 2014 from Gray Manufacturing Company, which makes silk pennants and uses a process-costing system. All direct materials are added at the beginning of the...
-
Explain how social media and related technology can be used to gather data and engage customers in the hotel and hospitality arena . Identify risks and gains. To complete your discussion, define what...
-
A company purchased $30,000 of 5% bonds for investment purposes on May 1. The bonds pay interest on February 1 and August 1. The amount of interest revenue accrued at December 31 (the companys...
-
Assume Apple invested $2.12 billion to expand its manufacturing capacity. Assume that these assets have a 10-year life and that Apple requires a 10% internal rate of return on these assets. Required...
-
Using the data from Exercises 3-1 and 3-2, prepare financial statements for February, including income statement, statement of stockholders equity, balance sheet, and statement of cash flows. Data...
-
Smart weather (with Jira) to be done with Jira apps on cloud.. I am new to creating scrum master projects with Jira Project Description GTM systems is a large IT company with offices all around the...
-
Choose one strategy, tactic, or tool you've learned in this class. Describe how you would use it in a future professional role. Identify one professional development and/or certification that would...
-
Your report should analyse your selected department of Bunnings Warehouse and also compare it to one of the direct competitors. Your report will conclude with strategic recommendations for the...
-
How is Samsung are doing in the values they offered in responding to the growing demand for digital and sustainability values expected by customers especially in the Asia Pacific region.
-
Technology innovation arising from he so-called digital era have continuously opened new opportunities for firms to create customer values in the marketplace. Samsung has also shown the way and in...
-
Refer to the data. Prepare the operating activities section of the statement of cash flows using the directmethod. Income Statement Cash Flows from Adjustments Operations (increase in accounts $...
-
Differentiate the following terms/concepts: a. Personality types and money attitudes b. Planners and avoiders c. Moderating and adapting to biases d. "Perfectible judges" and "incorrigible judges"
-
What factors determine the gain or loss on the sale of a PPE asset?
-
What is the benefit of accelerated depreciation for income tax purposes when the total depreciation taken over the asset's life is identical under any method of depreciation?
-
When is a PPE asset considered to be impaired? How is an impairment loss computed?
-
2. |A| = 1 -4 43 -3 102 2200 32 0 2 0 2 -3 3 find the determinant by Cofactor Expansion.
-
Find the special product. (x + 7y)(x - 7y)
-
Please give me a very brief summary of a segment of the NYC rental market over the last five years. For example what has happened to the prices and availability of rental units in Greenpoint...
Study smarter with the SolutionInn App