Calculate Answers to the Following Questions Using Future Value And/or

question 137

Essay

Calculate answers to the following questions using future value and/or present value tables.
a.Tally purchased machinery by executing a $30,000 non-interest-bearing note due in four years.For how much should the machinery be recorded,assuming that the going rate for similar notes is 6 percent?
b.Mindy Kwon is making bank deposits of $3,000 at the end of each year for five years,for purposes of buying a car.Assuming an interest rate of 7 percent,how expensive of a car will she be able to purchase?
c.To how much will $2,000 grow,assuming it is invested for 2-1/2 years,with interest of 8 percent,compounded quarterly?
d.Liz Astor would like to make a lump-sum deposit today so that she can withdraw $10,000 at the end of each year for the next three years.Assuming a 9 percent interest rate,what should she invest today?

---

Definitions:

Perishable Product

Items that have a limited shelf life and require timely sale and use, such as food, flowers, and some pharmaceuticals.

Privileged Information

Sensitive information that is not publicly available and is restricted to certain individuals or groups due to its confidentiality.

Situational Self-Image

The image or conception that individuals have of themselves in specific situations, which can change depending on context and environment.

Decision-Making Time

The period during which a person or group considers various options and outcomes before making a final choice.