Please help with the below financial accounting problems :(( 1. If you wish to a
ID: 2460476 • Letter: P
Question
Please help with the below financial accounting problems :((
1. If you wish to accumulate $140,000 in 20 years, how much must you deposit today in an account that pays an annual interest rate of 12%?
2. If you wish to accumulate $135,000 in 10 years, how much must you deposit today in an account that pays annual interest rate of 14%, with semi-annual compounding of interest?
3. If you deposit $15,500 per year for 9 years in an account that pays an annual interest rate of 10%, what will your account be worth at the end of 9 years?
4. If you deposit $5,000 semi-annually for 5 years in an account that pays an annual interest rate of 10%, what will your account be worth at the end of 5 years?
5. You decide that you need $60,000 in 4.5 years in order to make a down payment on a house. You plan to make semi-annual deposits to achieve your goal. If interest rate is 8%, how much should be deposited each time?
6. You owe $25,000 to your parents for funding some of your college. You promise to make 5 annual payments of $6,750 to settle your debt. Approximately what interest rate are your parents charging, if you make the 5 payments beginning one year from now?
7. You are offered an investment that will pay $24,000 per year for 7 years. If you feel that the appropriate discount rate is 11%, what is the investment worth to you today?
8. You have a rich uncle who has offered you some money upon successfully completing your accounting course. Assuming an annual interest rate of 8%, which alternative should you choose? Show your work for each alternative
a. $30,000 now
b. $6,000 a year for 6 years, with the first payment at the end of the first year
c. $4,000 a year for 5 years with the first payment made at the end of year 1, and then $19,000 at the end of the 6th year.
Explanation / Answer
Answer 1. S = P (1 +i)n S = $140000 n = 20 Years i = 12% Therefore, 140,000 = P (1 + 12%)20 P = 14513.35 Answer 2. S = P (1 +i)n S = 135000 n = 10 X 2 = 20 i= 14% / 2 = 7% Therefore, 135,000 = P (1 + 7%)20 P = $34886.57 Answer 3. S = R {[(1+i)n - 1)]/i} (1+i) R = 15500 per Year n = 9 years i = 10% S = 15500 {[(1+10%)9 - 1)]/10%} (1+10%) S = 231530.10 Answer 4. S = R {[(1+i)n - 1)]/i} (1+i) R = 5000 per Year n = 5 Year X 2 = 10 i = 10% / 2= 5% S = 5000 {[(1+5%)10 - 1)]/5%} (1+5%) S = 66033.94 As per Chegg Guidelines, we can answer only one question at a time having four subparts only. For other questions please ask it again.