Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter A3, Problem 6CE
Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions
Kristen Quinn makes equal deposits of $500 semiannually for 4 years.
Required:
What is the future value at 8%? (Note: Round answers to two decimal places.)
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
You deposit $5100 in an account earning 4% compound interest for 3 years. Find the
future value and the interest earned for each of the following compounding
frequencies. Round all answers to two decimal places where applicable.
Enter positive values for the Interest Earned.
(For this question: 1 year = 365 days, including leap years)
Frequency
Semiannually
Daily
> Next Question
(P/Y = C/Y)
N
Future Value
FA
$
Interest
earned
Assume you deposit $5,700 at the end of each year into an account paying 11.
interest.
a. How much money will you have in the account in 19 years? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g
b. How much will you have if you make deposits for 38 years? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g
а.
Future value
$
324,555.08
b.
Future value
$
2,462,818.38
Every year you deposit $3,500 into an account that earns 19% interest per year, What will be the balance of your account immediately after the 40th deposit?
Click the icon to view the interest and annuity table for discrete compounding when / 1% per year.
Choose the correct answer below.
O A. $165,837
O B. $123,795
OC. $171,102
OD. $172,813
OE. $140,000
Chapter A3 Solutions
Cornerstones of Financial Accounting
Ch. A3 - Prob. 1DQCh. A3 - Prob. 2DQCh. A3 - Prob. 3DQCh. A3 - Prob. 4DQCh. A3 - Prob. 5DQCh. A3 - Prob. 1CECh. A3 - Prob. 2CECh. A3 - Prob. 3CECh. A3 - Prob. 4CECh. A3 - Prob. 5CE
Ch. A3 - Use Future Value and Present Value Tables to Apply...Ch. A3 - Prob. 7CECh. A3 - Prob. 8CECh. A3 - Prob. 9CECh. A3 - Prob. 10CECh. A3 - Prob. 11ECh. A3 - Prob. 12ECh. A3 - Prob. 13ECh. A3 - Future Values and Long-Term Investments Portman...Ch. A3 - Prob. 15ECh. A3 - Prob. 16ECh. A3 - Prob. 17ECh. A3 - Present Values Phillips Enterprises signed notes...Ch. A3 - Present Values Krista Kellman has an opportunity...Ch. A3 - Prob. 20ECh. A3 - Prob. 21ECh. A3 - Future Value of a Single Cash Flow Jenkins...Ch. A3 - Prob. 23ECh. A3 - Installment Sale Baileys Billiards sold a pool...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at the annual rate of 12% compounded semiannually if the deposit is maintained for 4 years. Required: Calculate the balance of the savings account at the end of the 4-year period.arrow_forwardSamuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.arrow_forwarddeposits $7,900 in an Mark Welsch account that earns interest at an annual rate of 12%, compounded quarterly. The $7,900 plus earned interest must remain in the account 2 years before it can be withdrawn. How much money will be in the account at the end of 2 years? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Present Value Table Factor Total Accumulation $ 7,900 Xarrow_forward
- Percentages need to be entered in decimal format, for instance 3% would be entered as .03 in the interest rate cells.) At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8% compounded annually. How much is in the account today? How much would be in the account if the deposits were made at the beginning of each year (PMT Type) than at the end of each year? (Use Future Value of an Annuity) Suppose your opportunity cost (interest rate/year) is 11% compounded annually. How much must you deposit in an account today if you want to pay yourself $230 at the end of each of the next 15 years? How much must you deposit if you want to pay yourself $230 at the beginning of each of the next 15 years? Bruce invested $1,250 (present value - enter as a negative number) 10 years ago. Today, the investment is worth $3,550 (future value). If interest is compounded annually, what annual rate of return did Bruce earn on his investment? (Use Solving for r…arrow_forwardYou wish to save $52000 in an account which pays 3% compounded semiannually by making quarterly deposits for 6 years. What is the amount of the deposits? $ (Round to 2 decimal places.) Submit Questionarrow_forwardA depositor opens in your savings account with $5000 at 5% compounded semiannually at the beginning of 5 years an additional $5000 is deposit at the end of 6 years. What is the balance in the account?arrow_forward
- Determine the amount of money in a savings account at the end of 4 years, given an initial deposit of $13,000 and a 4 percent annual interest rate when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a. Annually b. Semiannually c. Quarterly Future Valuearrow_forwardMark Welsch deposits $7,300 in an account that earns Interest at an annual rate of 8%, compounded quarterly. The $7,300 plus earned Interest must remain in the account 1 years before it can be withdrawn. How much money will be in the account at the end of 1 years? (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Present Value Table Factor Total Accumulationarrow_forwardAssume an individual is wanting to determine the monthly deposits if after 1 year based on monthly deposits, the account now has $12,336.42 at 6% continuous compounding. Determine the monthly deposit. $900 $1,000 $1100 $1200arrow_forward
- How much must you deposit in an account today so that you have a balance of $18,355 at the end of 11 years if interest on the account is 13% p.a., but with quarterly compounding? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.arrow_forwardYou deposit $8900 in an account paying 8% interest, compounded semiannually. Calculate the compound amount after 9 years. (Round your answer to two decimal places.)$18029.77 18029.77 Step 2 The compound amount is $18029.77.Using the answer to Step 1, how much interest is earned? (Round your answer to two decimal places.)arrow_forwardYou deposit $100 in an account earning 4% coumpound interest for 5 years. Find the future value and the interest earned for each of the following compounding frequencies. Use the Bankers' Rule for daily compounding. Frequency Future Value Interest Earned Annually: Semiannually: Quarterly: Monthly: Daily:arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Portfolio return, variance, standard deviation; Author: MyFinanceTeacher;https://www.youtube.com/watch?v=RWT0kx36vZE;License: Standard YouTube License, CC-BY