2. Accounting
3. 1 for each of the following situations involving single amounts...

# Question: 1 for each of the following situations involving single amounts...

###### Question details

1. For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i = interest rate, and n = number of years) (FV of $1, PV of$1, FVA of $1, PVA of$1, FVAD of $1 and PVAD of$1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.)

 Present Value Future Value i n 1. $80,000 4.5% 9 2.$31,841 $94,000 16 3.$15,762 $50,000 8.0% 4.$84,482 $200,000 10 5.$13,291 9.0% 15

2. For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of$1, FVA of $1, PVA of$1, FVAD of $1 and PVAD of$1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.)

 Present Value Annuity Amount i = n = 1. $2,000 8% 5 2. 585,296 150,000 4 3. 351,822 200,000 9% 4. 510,000 69,620 8 5. 245,000 10% 4 3. John Rider wants to accumulate$95,000 to be used for his daughter’s college education. He would like to have the amount available on December 31, 2023. Assume that the funds will accumulate in a certificate of deposit paying 8% interest compounded annually. (FV of $1, PV of$1, FVA of $1, PVA of$1, FVAD of $1 and PVAD of$1) (Use appropriate factor(s) from the tables provided.)

1. If John were to deposit a single amount, how much would he have to invest on December 31, 2018?
2. If John were to make five equal deposits on each December 31, beginning on December 31, 2019, what is the required amount of each deposit?
3. If John were to make five equal deposits on each December 31, beginning on December 31, 2018, what is the required amount of each deposit?
(For all requirements, Round your final answers to nearest whole dollar amount.)

4. Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2018. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $6,600 on each September 30, beginning on September 30, 2021. (FV of$1, PV of $1, FVA of$1, PVA of $1, FVAD of$1 and PVAD of \$1) (Use appropriate factor(s) from the tables provided.)

Required:
Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2018, assuming that an interest rate of 10% properly reflects the time value of money in this situation.