3 Questions
When you consult the present value table, you search the 10% column (i = 10%) for this value and find 0.62092 in row five. So it would take approximately ______ years to accumulate $32,000 in the situation described.
five
Chancellor Ltd. sells an asset with a $1 million fair value to Sophie Inc. Sophie agrees to make six equal payments, each to be paid one year apart, commencing on the date of sale. The payments include principal and 6% annual interest. Compute the annual payments. (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.) $166,651. $203,351. $191,852. 0/3 pts $ ______.
135,252
We compute the annual payments in the present value of an annuity due formula, where the present value is $1 million, n = 6 and i = 6%. The present value factor (from PVAD of $1 table) is ______.
5.216
This quiz involves calculating present value and future value in a financial mathematics context. It includes solving for the time period needed to accumulate a certain future value and understanding equal payments over time.
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