Determine the annual interest rate that is needed for the following annuities to accumulate to $25,000. Assume
Question:
Determine the annual interest rate that is needed for the following annuities to accumulate to $25,000. Assume payments are made at the end of each period.
1. Annual payments of $4,095 for five years, interest compounded annually.
2. Semiannual payments of $5,715 for two years, interest compounded semiannually.
3. Quarterly payments of $1,864 for three years, interest compounded quarterly.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (12 reviews)
1 10 annual rate 25000 4095 61050 Table III Business Calculator Keystrokes 4095 x Press PMT enter as ...View the full answer
Answered By
Felix Mucee
I am a detailed and thorough professional writer with 5 years of administrative experience- the last 2 years in academic writing and virtual office environment. I specialize in delivering quality services with respect to strict deadlines and high expectations. I am equipped with a dedicated home office complete with a computer, copier/scanner/fax and color printer.
I provide creative and detailed administrative, web search, academic writing, data entry, Personal assistant, Content writing, Translation, Academic writing, editing and proofreading services. I excel at working under tight deadlines with strict expectations. I possess the self-discipline and time management skills necessary to have served as an academic writer for the past five years. I can bring value to your business and help solve your administrative assistant issues.
4.70+
13+ Reviews
33+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Question Posted:
Students also viewed these Accounting questions
-
Determine the annual interest rate that is needed for the following investments to accumulate to $50,000. 1. $10,414 for 20 years, interest compounded semiannually. 2. $7,102 for 10 years, interest...
-
Payments of $51.00 are made at the end of each month for six years at 8% compounded annually. Classify the annuity by (a) term; (b) date of payment; and (c) conversion period.
-
Assume that Mexico has a one-year interest rate that is higher than the U.S. one-year interest rate. Assume that you believe in the international Fisher effect (IFE) and interest rate parity. Assume...
-
Prerequisite: You will be using "utils.py" from Python 2 Assignment Task 1) In "utils.py," add a Python function called "calculate_fourier_coefficients" that calculates the coefficients of a Fourier...
-
Suppose a level .05 test of H0: 1 - 2 = 0 versus Ha: 1 - 2> 0 is to be performed, assuming 1 = 2 = 10 and normality of both distributions, using equal sample sizes (m = n). Evaluate the probability...
-
Explain why a state has regulatory authority over a not-for-profit organization. When does the federal government have regulatory authority over a not-for-profit organization?
-
Company B paid cash consideration amounting to \($250\),000 to Company A in exchange for 100% interests held by Company A in the paid up capital of Company D on 1 January 20x5. Company D was...
-
A 50-mm-diameter, thin-walled metal pipe covered with a 25-mm-thick layer of insulation (0.085 W/m K) and carrying superheated steam at atmospheric pressure is suspended from the ceiling of a large...
-
Traffic fatalities and 9/11. Figure 0.4 provides information on the number of fatal traffic accidents by month for the years 19962001. 8 The vertical blue line above each month gives the lowest to...
-
Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants have 17-year old twin daughters. The Grants would like to file a joint tax return for the year. The following information...
-
Determine the number of periods for which the following annuity payments would have to be invested to accumulate to $20,000. Assume payments are made at the end of each period. Convert the number of...
-
Determine the amount of the periodic payments needed to pay off the following purchases. Payments are made at the end of the period. 1. Purchase of a waterbed for $1,205. Monthly payments are to be...
-
Purchasing a building for $115,000 by paying cash of $25,000 and signing a note payable for $90,000 will a. decrease total assets and increase total liabilities by $25,000. b. increase both total...
-
How would the liability portion of the compound instrument be recorded?
-
A taxpayer's employer provides a car to the employee for business trips and personal travel. The taxpayer keeps a log book and travels 3,000 km for business use and 2,000 km for private use over the...
-
The error is when I test the Peek method in IntelliJ test, it tells Cannot read field "data" because "this.last" is null and Unexpected exception type thrown import resolve it...
-
What action will Bank of Montreal take if it finds that its balance in the Large Value Transfer System (LVTS) at the end of the day is a $25 Million deficit?
-
Given the cashflows for the two projects, use 10% discount rate to determine the salvage value for Alternative 1 that make the two projects equivalent. Hint: solve NPV for Alt 2, make that the NPV...
-
A highly effective way of getting your creative juices flowing is by thinking of things in unusual ways. (This is the concept of divergent thinking that we described on page 526.) Doing this opens...
-
Why is the national security argument for tariffs questionable?
-
Add horizontally and vertically: 3x 4 2x 3 4x 2 , x 3 2x 2 5x, and x 2 + 7x 2
-
At what time is it proper to recognize income in the following cases? (a) Installment sales with no reasonable basis for estimating the degree of Collectibility? (b) Sales for future delivery? (c)...
-
At what time is it proper to recognize income in the following cases? (a) Installment sales with no reasonable basis for estimating the degree of Collectibility? (b) Sales for future delivery? (c)...
-
At what time is it proper to recognize income in the following cases? (a) Installment sales with no reasonable basis for estimating the degree of Collectibility? (b) Sales for future delivery? (c)...
-
A bond has a coupon rate of 1 0 . 5 % and pays coupons annually. The bond matures in 9 years and the yield to maturity on similar bonds is 9 . 4 % . What is the price of the bond?
-
A 1 5 - year, 1 4 % semiannual coupon bond with a par value of $ 1 , 0 0 0 may be called in 4 years at a call price of $ 1 , 0 7 5 . The bond sells for $ 1 , 0 5 0 . ( Assume that the bond has just...
-
A particle has its position as a function of time given by; (t) = 3.33m cos (0.95t+0.58) + 3.33m sin(0.95-t + 0.58) +5.82tk (The input below will accept answers with no more than 1% variation from...
Study smarter with the SolutionInn App