Time Running on On December 1, 2020, Richards Company sold some machinery to Fleming Company. The two companies entered an installment sales contract at a predetermined interest rate. The contract required four equal annual payments with the first payment due on December 1, 2020, the date of the sale. What time value of money concept is appropriate for this situation? 1 How. 15 Minutes 25 Future amount of 1 for four periods. O Future amount of an annuity of 1 for four periods. O Present value of an ordinary annuity of 1 for four periods. Present value of an annuity due of 1 for four periods. Which of the following statements is true? You may use CH6 Time Value of Money Factor Table.docx If a single sum is due on December 31, 2020, the present value of that sum decreases as the date draws closer to December 31, 2020. The process of accumulating interest on interest is referred to as discounting o If money is worth 12% compounded annually $1568 due one year from today is equivalent to $1400 today. If money is worth 12% compounded annually. $1568 due one year from today is equivalent to $1756 today. a Bonita Industries will invest $ 30000 every January 1st for the next six years (2020-2025). If Bonita will earn 10% on the investment, what amount will be in the investment fund on December 31, 2025? CH6 Time Value of Money Factor Table-2.docx O $ 128997. O $130658 O $ 231468. O $254615. Mary and James want to begin saving for their baby's college education They estimate that they will need $115000 in twelve years. If they can carn 2% per annum, how much must be deposited at the end of each of the next twelve years to fund the education? CH6 Time Value of Money. Factor Table-3.docx $9450 $8574 O $10134 $ 10874. Michelle Gray wants to invest a certain sum of money at the end of each year for five years. The investment will earn 7% compounded annually. At the end of five years, she will need a total of $ 38000 accumulated. How should she compute her required annual investment? O $38000 times the present value of a 5-year, 7% ordinary annuity of 1. O $38000 divided by the future value of a 5 year, 7% ordinary annuity of 1. O $38000 times the future value of a 5-year, 7% ordinary annuity of 1. O $38000 divided by the present value of a 5-year, 7% ordinary annuity of 1