Ac300 Unit 8 Wiley

Ac300 Wiley Week 8
Exercise 6-8
Stephen Bosworth, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $26,100 per year on June 30, beginning in 2016 and continuing through 2019. To develop this fund, Stephen intends to make equal contributions on June 30 of each of the years 2012-2015.



	 
 
 	
(a)

 
 	Your answer is correct.
 	 
How much must the balance of the fund equal on June 30, 2015, in order for Stephen Bosworth to satisfy his objective? (Round answers to 0 decimal places, e.g. $458,581.)
Balance of the fund equal on June 30, 2015		$  



	 
 
 	
 
(b)

 
 	Your answer is correct.
 	 
What are each of Stephen- contributions to the fund? (Round answers to 0 decimal places, e.g. $458,581.)
Stephen- contributions to the fund		$  

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Exercise 6-3
 
 	Your answer is correct.
 	 
Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.)

(a) What is the future value of $7,740 at the end of 5 periods at 8% compounded interest? (Round answers to 0 decimal places, e.g. $458,581.)
The future value		$  


(b) What is the present value of $7,740 due 8 periods hence, discounted at 11%? (Round answers to 0 decimal places, e.g. $458,581.)
The present value		$  


(c) What is the future value of 15 periodic payments of $7,740 each made at the end of each period and compounded at 10%? (Round answers to 0 decimal places, e.g. $458,581.)
The future value		$  


(d) What is the present value of $7,740 to be received at the end of each of 17 periods, discounted at 5% compound interest? (Round answers to 0 decimal places, e.g. $458,581.)
The present value		$