Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 21. below is a table for the present value of $1 a

21. Below is a table for the present value of $1 at Compound interest. ...

60.1K

Verified Solution

Question

Accounting

21. Below is a table for the present value of $1 at Compound interest.

Year 6% 10% 12%
1 0.943 0.909 0.893
2 0.890 0.826 0.797
3 0.840 0.751 0.712
4 0.792 0.683 0.636
5 0.747 0.621 0.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year 6% 10% 12%
1 0.943 0.909 0.893
2 1.833 1.736 1.690
3 2.673 2.487 2.402
4 3.465 3.170 3.037
5 4.212 3.791 3.605

Using the tables above, if an investment is made now for $17,700 that will generate a cash inflow of $5,900 a year for the next 4 years, what would be the net present value (rounded to the nearest dollar) of the investment, assuming an earnings rate of 10%?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

The table below gives the average high temperatures in January and July for 12 random cities...

Basic Math
1.2K views

Refer to the Lincolnville School District bus data. Conduct a test of hypothesis to reveal whether...

Finance
1.2K views

S&P 500 Index is at 2780. A European June 21, 2019 SPX call option struck at...

Calculus
1.2K views

Graph the exponential function g x To do this plot two points on the graph...

Algebra
1.2K views

S Valdez Company sold land that had cost 48 000 for 60 000 cash Which...

Algebra
1.2K views

5 x 25 x 8x 15

Accounting
1.2K views

Fogle Florist specializes in large floral bouquets for hotels and other commercial spaces....

Accounting
1.2K views

Question 18 10 pts Net Cash flows from investing includes Gain from the sale of...

Accounting
1.2K views

Three months of insurance were purchased on October 1st for $1,500 recorded in a Prepaid...

Accounting
1.2K views

Ray Company provided the following excerpts from its Production Department's flexble budget performance report. Required:...

Accounting
1.2K views

Which manager or who is most likely responsible for direct material price variances? A. Marketing....

Accounting
1.2K views

Read the requirements. Requirement 1. Prepare an effective-interest amortization table for the bonds through...