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?

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Definitions:

Total Revenue

The total income generated from the sale of goods or services, calculated as the unit price multiplied by the quantity sold.

Constant of Proportionality

The constant of proportionality is the factor that relates two variables that are directly proportional to one another.

Stack Emissions

Gases or particles released into the atmosphere from industrial stacks or chimneys.

Air Pollutants

Substances in the air that can cause harm to humans and the environment.