BE 5.02 – Bill O’Brien (Solving Future Value)
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Asks if Bill can pay for the trip by finding the future value of the inheritance.
Asks if Bill can pay for the trip by finding the future value of the inheritance.
Asks for the interest rate needed to be able to invest an inheritance to pay for a trip.
Asks to find the maximum amount would be willing to invest now.
Asks to find the interest rate John would earn on an investment.
Given an interest rate and the amount deposited… determine how much will be in the account in the given amount of years.
Gives you the Interest rate and the amount deposited and asks for the amount accumulated at the end of the given amount of years. Note if it says the beginning of the period select beginning.
Given the annual installments and the interest rate… figure out the initial amount borrowed.
Given the annual payments and the amount per payment along with the interest rate… find the amount of the loan if the payment was due immediately.
Given an interest rate, number of payments, payment amount, and years till due they ask you to fill out tables to calculate the amount that they borrowed.
Given the amount borrowed, the number of payments to make, and the interest rate… determine the amount per payment.