Suppose you are going to receive $20,000 per year for 7 years. The appropriate interest rate is

Fantastic news! We've Found the answer you've been seeking!

Question:

Suppose you are going to receive $20,000 per year for 7 years. The appropriate interest rate is 7 percent.

1. suppose you plan to invest the payments for 7 years. What is the future value at the end of Year 7 if the payments are an ordinary annuity?

2. Suppose you plan to invest the payments for 7 years. What is the future value at the end of Year 7 if the payments are an annuity due?

Related Book For answer-question

Auditing and Assurance Services

ISBN: 978-0077862343

6th edition

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

See More Books

Posted Date: Jan 08, 2021 01:06 AM

See More Questions

For the year ended December 31, 2020, Sweet Ltd. reported income before income taxes of $190,500. Prior to 2020 taxable income and accounting income was the same each year. In 2020, Sweet Ltd. paid...
Question 6 The government of Jonovia seizes all assets of Refresh, a world-famous, soft-drink brand in Jonovia, and offers compensation to the company. This action by the government of Jonovia is an...
Write a one-page essay on "one of the boiler types" presented in the lecture and the chapters indicated in our textbook. Boiler type is usually the fuel source and the shell/tube arrangement, the...
Discuss documents that need to be included in recovery documentation?
What are the main types of printers? How do they work?
A hollow cylinder has mass m, an outside radius R 2 , and an inside radius R 1 . Show that its moment of inertia about its symmetry axis is given by I = m(R 2 2 + R 1 2 ).
What are the different types of schemes associated with complex frauds?
Stewart Corporation is a major automobile manufacturer. It purchases steering wheels from Coase Corporation. Annual demand is 10,400 steering wheels per year or 200 steering wheels per week. The...
Explain using examples why partial equilibrium is a useful tool for agricultural economists and discus its shortcomings as a tool for policy analysis.
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
The following information is available about the yields on zero-coupon Govt. bonds with different maturities in the debt market: 4 6 Maturity Yield (%) 7 3 11.8 12.6 12.4 12 You are required to...
Consider the following procedure: procedure f(n: a natural number) if n = 0 then return(0) else return(f(n-1)+n) Which value is f(5)? What does it return for an arbitrary n?
Your Bank T-account shows a Debit balance of 10,000 as at 1/1/x9. On the 2/1/x9 you purchase a van for 7,000 and you take out 1,000 to book a family holiday. What is the Bank T-account balance as at...
why is critical not to overheat the organic matter being tested in the muffle furnace?
1. What is the corporate strategy behind Amazons acquisition of Whole Foods?
You execute the following program. Assume all forks succeed in executing. How many hello will be output? #include #include int main(void) { printf("hello "); fork(); fork(); fork(); fork();...
A company's assets consist of $200,000 of cash, $400,000 of accounts receivable, $600,000 of inventory, and $1,500,000 of plant and equipment. Its liabilities consist of $100,000 of accounts payable,...
Splitting hairs, if you shine a beam of colored light to a friend above in a high tower, will the color of light your friend receives be the same color you send? Explain.
What is the basic relationship between the effectiveness of the clients internal control and the necessary effectiveness of substantive procedures?
Alex Fishkin is trying to decide on a new location for an ice cream and candy shop. He has decided that if the average number of children per household within a one- mile radius of a proposed shop...
What actions should auditors take if evidence suggests that substantial doubt exists about the clients ability to continue as a going concern?
For the particular case of hard spheres, the pressure in the virial equation of state is determined by evaluating the pair correlation function at contact. Write the pair correlation function as...
Use a virial expansion approach to determine the first few nontrivial order contributions to the pair correlation function $g(r)$ in $d$ dimensions. Show that the pair correlation function is of...
(a) For a dilute gas, the pair correlation function $g(r)$ may be approximated as \[g(r) \simeq \exp \{-u(r) / k T\}\] Show that, under this approximation, the virial equation of state (10.7.11)...

Suppose you are going to receive $20,000 per year for 7 years. The appropriate interest rate is

Question:

Expert Answer:

Solved 1 and 2 and 3 To calculate the FV we use the excel FV formula FV7520000 ... View the full answer

Auditing and Assurance Services

Students also viewed these accounting questions