1.You deposit $5,000 in the bank today and an additional $5,000 two years later. What is the...
Question:
1.You deposit $5,000 in the bank today and an additional $5,000 two years later. What is the future value of the above deposits in year 5 if the interest rate is 6%?
$12,646.21
$13,645.20
$14,209.28
$12,309.13
$15,915.76
10 points
QUESTION 3
1.What is the present value of $2,000 that you expect to receive five years from today if the interest rate is 4%?
$1,580.63
$1,643.85
$1,494.52
$1,975.79
$1,762.40
10 points
QUESTION 4
1.You are expecting to receive $100,000 at the end of year 4 and another $100,000 at the end of year 6. What is the present value of the receivables if the interest rate is 5%?
$161,005.30
$164,736.38
$154,457.98
$156,891.79
$165,324.49
10 points
QUESTION 5
1.You estimate that the present value of $5,000 in year 5 to be $3,402.92 today. What discount rate did you use?
12%
10%
9%
8%
15%
10 points
QUESTION 6
1.You put in $50,000 in the bank today. What is the FV of this deposit in year 10 if the interest rates is 5% from years 0 to 6 and 6% from years 6 to 10?
$63,814.08
$85,397.63
$63,814.08
$95,952.78
$63,814.08
$89,502.55
$67,004.78
$84,591.99
$67,004.78
$95,047.56
10 points
QUESTION 7
1.You expect to receive $50,000 in year 10. What is the PV of receivables today if the interest rates is 5% from years 0 to 5 and 6% from years 5 to 10?
$37,362.91
$29,274.82
$37,362.91
$30,709.59
$39,604.68
$29,553.62
$35,649.31
$27,932.17
$41,980.96
$32,893.18
10 points
QUESTION 8
1.You would like to accumulate $400,000 in year 15. What amount should you deposit today if the interest rate is 6%?
$124,721.89
$155,902.36
$103,367.60
$166,906.02
$144,978.41
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill