1. How much do you need to invest now to accumulate $4,000 after 2 years if the...
Question:
1. How much do you need to invest now to accumulate $4,000 after 2 years if the rate of interest is 6.5% per annum?
2. How long does it take for $1,500 to accumulate to $9,000 under an interest rate of 36% on an annual basis?
3. Find the future values of the following ordinary annuities:
a) FV of $300 each 6 months for 4 years at a nominal rate of 10%, compounded semiannually,
b) FV of $500 each 3 months for 4 years at a nominal rate of 10%, compounded quarterly.
4. Company ABC intends to purchase manufacturing equipment in the future. To this end, it intends to raise capital of $150,000 over 10 years. How much does the company need to deposit annually in a bank account bearing an interest of 11% per annum to raise this amount if payments are made at the end of every period?
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan