Intermediate Acct I- Chap6

Download Intermediate Acct I- Chap6

Post on 28-Nov-2014

559 views

Category:

Documents

4 download

Embed Size (px)

TRANSCRIPT

<p>Patricia Jones Intermediate Accounting I Chapter 6 (E6-1, 2, 3, 4, 7, 8) E6-1 #1) FV = $15,000 (2.01220*) = $30,183 ( * rate based on table 1 back of the book) #2) FV= $20,000 (2.15892*) = $ 43,178.40 #3) FV= $30,000 (9.64629*) =$289,388.70 #4) FV=$50,000 (1.60103*) =$80,051.50 E6-2 #1) FV = $10,000 (2.65330*) = $26,533 #2) FV = $10,000 (1.80611*) = $18,061 #3) FV = $10,000 (1.81136*) = $18,114 E6-3 #1) PV = $20,000 (.50835* ) = $10,167 (*rate based on table 2 back of book) #2) PV = $14,000 (.39711* ) = $5,560 #3) PV = $25,000 (.10367* ) = $2,592 #4) PV = $40,000 (.46651* ) = $18,660 E6-4 PV of $1 i=8% .92593 = .85734 = .73503 = .63017 =</p> <p>First payment: Second payment Third payment Fourth payment E6-7 1&amp;2 only</p> <p>Payment $5,000 6,000 8,000 9,000 Total</p> <p>x x x x</p> <p>5,144 5,880 5,672</p> <p>PV $ 4,630 2 4 6 $21,326</p> <p>n 1</p> <p>#1) FVA = $2,000 (4.7793* )= $9,559 (*from table 3) #2) FVAD= $2,000 (5.3528* )= $10,706 (* from table 5)</p> <p>E6-7 1&amp;2 only #1) PVA = $5,000 (3.60478* ) = $18,024 (* from table 4) #2) PVAD = $5,000 (4.03735* ) = $20,187 (* from table 6) E6-11 1- (a) PV = $64,000 (b) PV = $20,000 + $8,000 (4.91732* ) (* based on table 4) PV = $20,000 + $39,339 = $59,339 (c) PV = $13,000 (4.91732* ) = $63,925 Alex should choose option (1). 2. FVA = $100,000 (13.8164* ) = $1,381,640 (* based on table 3) E6-21</p> <p>1. E 2. M 3. J 4. I 5. K 6. L 7. C 8. D 9. A 10. B 11. H 12. G 13. F</p>