Calculate Answers to the Following Scenarios

question 8

Essay

Calculate answers to the following scenarios.
a.Jackson Company purchased machinery by executing a $50,000 non-interest-bearing note due in four years.Assuming the going rate for similar notes is 6 percent and using the appropriate present value table,for how much should the machinery be recorded?
b.Wendy Kwon is making bank deposits of $3,000 at the beginning of each year for three years for purposes of buying a car.Assuming an interest rate of 7 percent compounded annually,how much will she have saved for the purchase at the end of year 3? (Calculate manually and round to the nearest dollar. )
c.Ashton Jones would like to make a lump-sum deposit today so that he can withdraw $15,000 at the end of each year for the next three years.Assuming a 9 percent interest rate and using the appropriate present value table,what should she invest today?

---

Definitions:

Civil Lawsuit

A legal dispute between two or more parties seeking monetary damages or specific performance rather than criminal sanctions.

Tort

A civil wrong or injury that leads to legal liability, allowing the injured party to seek compensation for damages caused by the tortfeasor.

Exploitation

Also referred to as financial abuse, it is the unauthorized or improper use of the resources of an elder for monetary or personal benefit, profit, or gain. Examples include forgery; misuse or theft of money or possessions; use of coercion or deception to surrender finances or property; or improper use of guardianship or power of attorney.

Elder

A term that refers to an older person, often used with respect and to acknowledge their wisdom and experience.