#### Details of this Paper

##### Accounting problems solved

**Description**

solution

**Question**

Question;1 What will a deposit of $5,000 left in the bank be worth under the following conditions?Left for 5 years at 6% interest?Left for 5 years at 6% interest compounded monthly?Left for 5 years at 6% interest compounded continuously?Left for 10 years at 6% interest?Left for 10 years at 8% interest?2 Your firm has a $10,000 note receivable due from a customer. How much is the note worth today if:The note is due in 2 years and the discount rate is 8%?The note is due in 3 years and the discount rate is 15%?The note is due in 3 years and the discount rate is 10% compounded monthly?3 How much will the following people have for retirement?Alex deposits $100 a month for 20 years with a 6% return.Beth deposits $100 a month for 30 years with a 6% return.Chris deposits $100 a month for 30 years with a 9% return.4 A lottery prize advertised as "$1 million" is actually paid as $25,000 a year for 40 years.Find the present value of the $25,000 a year for 40 years using a 5% discount rate.Find the present value using an 8% discount rate.The winner of this lottery is offered $500,000 now instead of the series of payments that total $1 million. If this person believes that they can earn 5% interest, which option should they pick? Explain.5 Find the monthly payments for a $15,000 car loan with the following terms. Also find the total amount that will be paid over the life of the loan.4 year loan at 8% interest (compounded monthly)Total paid6 year loan at 12% interest (compounded monthly)Total paid6 Find the amount that must be saved each year to reach the following goals.Darby needs $20,000 in 10 years and can receive 4% interest.Fran needs $800,000 in 35 years and can receive 8% interest.7 George has $20,000 in credit card debt at 18% interest compounded monthly. How many months will it take to pay off this amount:If he makes a $350 payment each month?If he makes a $520 payment each month?8 What is the interest rate on loans with the following terms?On $10,000 borrowed, pay $2,000 a year for 6 years.On $2,000 borrowed, pay $100 a month for 25 months.9 Answer these questions:Jack deposits $3,000 a year at 4% interest. In how many years will he have $50,000?How many years would it take $100 to become $1,000 at 15% interest?You have paid $1,000 for an investment that will pay back $1,200 in 3 years. What interest rate does that represent?A preferred stock is expected to pay an $8 annual dividend every year forever. If comparable market interest rates are 9%,what is the value of this stock?10 Answer these additional questions:Amy's parents deposited $10,000 in a savings account earning 3% interest compounded monthly when she was born.How much will the account have when Amy is 21 years old?Beth is to receive $5,000 in 10 years. If Beth could be earning an 11% return on this money, what is it's present value?Cameron has been depositing $50 a month into a 6% account for the last 5 years. How much is in his account?Dave has recently retired, and is being paid an annuity of $24,000 a year for the rest of his life.Statistically, he expects to live for 18 years. Using a 7% discount rate, find the present value of the annuity.

Paper#44665 | Written in 18-Jul-2015

Price :*$20*