Calculate the time value of money problems

Assignment Help Financial Accounting
Reference no: EM131295388

Calculate the following time value of money problems.

a) What is the future value of 24 periodic payments of $4,620 each made at the beginning of each period and compounded at 8% per period?

b) What would you pay for a $200,000 face value bond that matures in 15 years and pays $15,000 a year in interest if you wanted to earn a yield of 9%.

c) Kevin wishes to become a millionaire. His money market fund has a balance of $555,264.50 and has a guaranteed interest rate of 4%. How many years must Kevin leave that balance in the fund in order to get his desired $1,000,000?

d) Jackson just received a signing bonus of $1,000,000. His plan is to invest this payment in a fund for 8 years (his planned retirement date). If Jackson plans to establish the AB Foundation once the fund grows to $1,850,930, what annually compounded interest rate must he earn to achieve his goal?

Reference no: EM131295388

Questions Cloud

National strategy influences of these non-state actors : MNCs, IOs, NGOs, and the European Union are non-state actors in the role of pushing foreign policy to combat terrorism. Discuss one or two ways in which the national strategy influences any of these non-state actors.
Shares of common stock outstanding for that year : During the year ended December 31, 2017, Gluco, Inc., split its stock on a 3-for-1 basis. In its annual report for 2016, the firm reported net income of $925,980 for 2016, with an average 268,400 shares of common stock outstanding for that year. Ther..
Identify the forced and natural components in the output : The circuit in Figure is in the zero state when the input vS (t) = 150u (t) is applied. If C = 0.022 μF and R = 82 kΩ, find vO(t) for t ≥ 0.-  Identify the forced and natural components in the output.
How statistics be misleading to a decision-maker : Why has risk modeling become pervasive in the security management professions? Why do you believe that MSRAM has become a favored Risk Management tool? Just because it was first?
Calculate the time value of money problems : Calculate the following time value of money problems. What is the future value of 24 periodic payments of $4,620 each made at the beginning of each period and compounded at 8% per period? What would you pay for a $200,000 face value bond that matures..
Employment relationship from union member rights : Describe the benefits have nonunion employees have gained in their employment relationship from union member rights?
Create a ruby script that defines a function : Create a Ruby script that defines a function occurrences(list,key) that takes an array list and object key and returns the number of elements in list that are equal to key - Create a Ruby script that defines a function numSmaller(list,item) that t..
Find the devices capacitance : The device undergoes a constant current discharge of iD = 3 mA.- After 1 hour, the voltage remaining on the capacitor is 3 V. Find the device's capacitance.
Female assistant manager : Review "Clippings" on pages 607-608 of your textbook about the McDonald's strip search incident. Imagine a scenario that is not quite as egregious as the one referenced. Instead, imagine that a female assistant manager performed the same cavity se..

Reviews

Write a Review

Financial Accounting Questions & Answers

  What would be the key points of intangible assets

What would be the key points of your lecture and what types of problems or examples would you present to your students?

  Describe the role of managerial accounting

Describe the role of managerial accounting in your current or former place of business. If you have not been employed by a company that uses managerial accounting.

  Compute inventory book and tax differences

In its first year of operations, Lima Company manufactured 1,000 widgets, incurring direct materials and labor costs of $227,000. For book purposes, Lima captialized $260,000 of indirect manufacturing costs. Compute Lima's inventory book/tax differen..

  Determine the cost of merchandise sold for march

Cost of Merchandise Sold - Based on the subsequent data, determine the cost of merchandise sold for March:

  Transaction analysis-various concepts

Enter the transaction/adjustment letter in the first column and show the effect, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income by entering for each category affected the account name and amount, and..

  What is the break-even point in unit sales

[The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): What..

  Major difference between deferral and accrual adjustments

One major difference between deferral and accrual adjustments is?

  Determine the expected net realizable value

Balance in the allowance account after the adjustment of December 31. Expected net realizable value of the accounts receivable as of December 31.

  Discuss the information that might be included in csr report

'Corporate social responsibility (CSR) reporting to stakeholders is based upon the assumption that companies have wider responsibilities than simply to make money for shareholders.'

  Compute the amount of bond interest expense to be reported

Compute the amount of bond interest expense to be reported on Peter Pan's income statement for the year ended December 31, 2014. (Round computations to the nearest dollar.)

  Purpose the journal entry to record depreciation for 2013

Prepare the suitable journal entry, if any, to record this accounting change. Purpose the journal entry to record depreciation for 2013.

  Research an unusual or conflicting accounting principle

Identify the core functions of each department, their strengths and weaknesses, and make recommendations for improvement, as appropriate

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd