WEEK 4 QUIZ

  1. How much will $6,500 invested at the end of each year grow to in six years, assuming an interest rate of 9% compounded annually?

Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1).

 

 

  1. Shane wants to invest money in an investment account paying 8% interest compounding semiannually. Shane would like the account to have a balance of $150,000 three years from now. How much must Shane deposit to accomplish his goal?

Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1).

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  1. At the end of each quarter, Patti deposits $1,400 into an account that pays 12% interest compounded quarterly. How much will Patti have in the account in four years?

Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1).

  1. What is the value today of receiving $5,500 at the end of each year for the next 5 years, assuming an interest rate of 11% compounded annually?

Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1).

  1. You borrow $37,000 to buy a boat. The loan is to be paid off in monthly installments over one year at 12% interest annually. The first payment is due one month from today. What is the amount of each monthly payment?

Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1,PVA of $1, FVAD of $1 and PVAD of $1)

 

  1. On September 30, 2024, Truckee Garbage leased equipment from a supplier and agreed to pay $134,000 annually for 15 years beginning September 30, 2025. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Truckee recorded a $1,659,105 lease liability.

Required:

Determine the interest rate implicit in the lease agreement.

Note: Use tables, Excel, or a financial calculator. Round your answer to 1 decimal place. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)