Question: What is the Present Value ( PV ) of $ 1 8 5 , 0 0 0 , assuming a 2 % interest rate for

 

What is the Present Value (PV) of $185,000, assuming a 2% interest rate for 5 years (rounded to 2 decimal places)?

a. $128,312.95

b. $165,584.00

c. $167,560.05

d. $142,685.00

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The detailed answer for the above question is provided below To calculate the present valu... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Picante, Inc., provided the following information for the last calendar year: During the year, direct materials purchases amounted to $184,800, direct labor cost was $149,100, and overhead cost was...

Q:

Females account for 65% of sales at a major retailer. Assume the probability of a customer being female is .65. The probability that a purchase made by a female exceeds $100 is .32 and the...

Q:

Fly-Buy Aircraft sells a wide vanety of model aircrafts and uses a perpetual inventory system. On June 1, Fly-Buy Aircraft had five Cessna 560 model airplanes on hand at a unit cost of $105.00....

Q:

For each problem, show your work steps. A correct answer with no work shown gets half credit (which means you fail the assignment). An incorrect answer with no work receives 0 credit. With time value...

Q:

The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a...

Q:

1. The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a...

Q:

The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a...

Q:

3. Future value The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the...

Q:

For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i =...

Q:

15) An annuity pays $10 per year for 98 years. What is rate is 7%? y pays $10 per year for 98 years. What is the present value (PV) of this annuity given that the discount A) $85.60 B) $171.20 C)...

Q:

"Investment X yields a payment of $1500 at the end of year 1, a payment of $7500 at the end of year 2 a payment of $10000 at the end of fear 3, and a payment of $35000 at the end of year 4 ....

Q:

An engineer is designing a spring to be placed at the bottom of an elevator shaft. If the elevator cable should break when the elevator is at a height h above the top of the spring, calculate the...

Q:

Chester Inc. issued shares of its $5.75 par value common stock for $15.00 per share. In recording the issuance of the stock, Chester credited the Additional Paid-In Capital-Common Stock account for...

Q:

According to the 2018 policy supporting regulation of electronic nicotine delivery systems (ENDS), what is defined as an ENDS? Note: Use the American Public Health Association (APHA) Policy Statement...

Q:

A 1.00-mol sample of air (a diatomic ideal gas) at 300 K, confined in a cylinder under a heavy piston, occupies a volume of 5.00 L. Compute the final volume of the gas after 4.40 kJ of energy is...

Q:

A 1.00-km steel railroad rail is fastened securely at both ends when the temperature is 20.0C. As the temperature increases, the rail begins to buckle. If its shape is an arc of a vertical circle,...

Q:

A 1.00-kg iron horseshoe is taken from a forge at 900C and dropped into 4.00 kg of water at 10.0C. Assuming that no energy is lost by heat to the surroundings, determine the total entropy change of...

Q:

A 1.00-kg block of copper at 20.0C is dropped into a large vessel of liquid nitrogen at 77.3 K. How many kilograms of nitrogen boil away by the time the copper reaches 77.3 K? (The specific heat of...

Q:

A 1.00-kg block of aluminum is heated at atmospheric pressure so that its temperature increases from 22.0C to 40.0C. Find (a) The work done on the aluminum, (b) The energy added to it by heat and (c)...

Q:

Which of the following methods is not an acceptable method for allocating the cost of support activities?a) The step-down methodb) The reciprocal methodc) The indirect methodd) The direct method

Q:

In an air bag test, a car traveling at is remotely driven into a brick wall. Suppose an identical car is dropped onto a hard surface. From what height would the car have to be dropped to have the...

Q:

In principle, when used together, an ammeter and voltmeter allow for the measurement of the resistance of any circuit element. Lets assume that that element is a simple ohmic resistor. Suppose that...

Q:

The Cartesian coordinates of a point on a circle are (1.5 m, 2.0 m). What are the polar coordinates (r, ) of this point?

Q:

The article Origin of Precambrian Iron Formations (Econ. Geology, 1964: 10251057) reports the following data on total Fe for four types of iron formation ). 1: 20.5 28.1 27.8 27.0 28.0 25.2 25.3 27.1...

Q:

Apply the modified Tukeys method to the data in Exercise 22 to identify significant differences among the mi s. a 5 .05 5 1.6, 3.8, 6.0

Q:

8.35. A study3 of American armed forces who had served in Iraq or Afghanistan found that the event of being attacked or ambushed was reported by 1139 of 1961 Army members who had served in...