AC 302 CHAPTER 6 PROBLEM QUESTION 2

AC 302 CHAPTER 6 PROBLEM  QUESTION 2
Name				Date			
Instructor				Course			
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield							
Primer on Using Excel in Accounting by Rex A Schildhouse							
							
P6-2 (Various Time Value Situations) Using the appropriate interest table or Excel formula, provide the solution to each of the following four questions by computing the unknowns.							
							
(a) What is the amount of the payments that Ned Winslow must make at the end of each of							8 
years to accumulate a fund of			$90,000 	by the end of the eighth year, if the fund earns			
8%	interest, compounded annually?						
							
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(b) Robert Hitchcock is		40 	years old today and he wishes to accumulate				$500,000 
by his	65 	th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to					
accumulate this amount by making equal deposits on his fortieth through sixty-fourth birthdays. What annual							
deposit must Robert make if the fund will earn				12%	interest compounded annually?		
							
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(c) Diane Ross has		$20,000 	to invest today at		9%	to pay a debt of	$47,347 
How many years will it take her to accumulate enough to liquidate the debt?							
							
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(d) Cindy Houston has a		$27,600 	debt that she wishes to repay in			4 	years from
today; she has	$19,553 	that she intends to invest for the			4 	years. What rate of interest	
will she need to earn annually in order to accumulate enough to pay the debt?							
							
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