ACC 303 Week 9 Quiz | Assignment Help | Strayer University
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- 26 Jul 2020
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ACC 303 Week 9 Quiz | Assignment Help | Strayer University
Brief Exercise 6-1
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Henry Spear invested
$10,400 today in a fund that earns 8% compounded annually.
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To what amount will the
investment grow in 2 years? To what amount would the investment grow
in 2 years if the fund earns 8% annual interest compounded
semiannually? (Round factor values to 5 decimal places,
e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)
Brief Exercise 6-2
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Newman Bautista needs
$26,700 in 3 years.
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What amount must he
invest today if his investment earns 12% compounded annually? What amount
must he invest if his investment earns 12% annual interest compounded
quarterly? (Round factor values to 5 decimal places, e.g.
1.25124 and final answers to 0 decimal places, e.g. 458,581.)
Brief Exercise 6-3
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Stacy Willis will invest
$25,200 today. She needs $91,790 in 15 years.
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What annual interest
rate must she earn? (Round answer to 0 decimal places, e.g.
7%.)
Brief Exercise 6-7
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Adams Fillmore’s
lifelong dream is to own his own fishing boat to use in his retirement. Adams
has recently come into an inheritance of $410,900. He estimates that the boat
he wants will cost $334,300 when he retires in 6 years.
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How much of his
inheritance must he invest at an annual rate of 4% (compounded annually)
to buy the boat at retirement? (Round factor values to
5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g.
458,581.)
Exercise 6-2 (Part Level
Submission)
John Jackson invests $48,800 at 8% annual interest,
leaving the money invested without withdrawing any of the interest
for 8 years. At the end of the 8 years, John withdraws the
accumulated amount of money.
(a)
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Compute the amount John would withdraw assuming the investment
earns simple interest. (Round answers to 0 decimal places, e.g. 458,581.)
Exercise 6-2 (Part Level
Submission)
John Jackson invests $48,800 at 8% annual interest,
leaving the money invested without withdrawing any of the interest
for 8 years. At the end of the 8 years, John withdraws the
accumulated amount of money.
(b)
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Click here to view factor tables
Compute the amount John would withdraw assuming the investment
earns interest compounded annually. (Round factor values to 5 decimal places,
e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Exercise 6-2 (Part Level
Submission)
John Jackson invests $48,800 at 8% annual interest,
leaving the money invested without withdrawing any of the interest
for 8 years. At the end of the 8 years, John withdraws the
accumulated amount of money.
(c)
Compute the amount John would withdraw assuming the investment
earns interest compounded semiannually. (Round factor values to 5 decimal places,
e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Exercise 6-9
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Teal Company purchased a
machine at a price of $92,800 by signing a note payable, which requires a
single payment of $123,517 in 3 years.
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Assuming annual
compounding of interest, what rate of interest is being paid on the loan? (Round
answer to 0 decimal places, e.g. 13%.)
Exercise 6-10 (Part Level
Submission)
Consider the following independent situations.
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(a)
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Henry Finley wishes to become a millionaire. His money market fund
has a balance of $223,488 and has a guaranteed interest rate of 8%.
How many years must Henry leave that balance in the fund in order to get his
desired $1,125,000? (Round answer to 0 decimal places, e.g. 45.)
Exercise 6-10 (Part Level
Submission)
Consider the following independent situations.
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(b)
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Assume that Stacy Williams desires to accumulate $1,125,000
in 12 years using her money market fund balance of $210,271. At what
interest rate must Stacy’s investment compound annually? (Round answer to 0 decimal places, e.g.
5%.)
Multiple Choice Question 69
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Given below are the
present value factors for $1.00 discounted at 9% for one to five periods.
Interest is compounded annually at 9%.
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Periods |
Present Value of $1 |
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1 |
0.917 |
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2 |
0.842 |
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3 |
0.772 |
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4 |
0.708 |
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5 |
0.650 |
If an individual deposits $20400 in a savings account today, what amount of
cash would be available two years from today?
o $20400 ÷ 0.842
o $20400 × 0.842 × 2
o $20400 × 0.842
o $20400 ÷ 0.917 × 2
Multiple Choice Question 75
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Swifty Corporation will
receive $320000 in a future year. If the future receipt is discounted at an
interest rate of 11%, its present value is $91469. In how many years is the
$320000 received?
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10 years
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11 years
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12 years
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13 years
IFRS Multiple Choice Question 01
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Vaughn Manufacturing
maintains its accounting records using IFRS. The company recently signed a
lease for a new office building, for a lease period of 10 years. Under the
lease agreement, a security deposit of $30000 is made, with the deposit to be
returned at the expiration of the lease, with interest compounded at 9% per
year. What amount will the company receive at the time the lease expires?
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$37939.
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$71021.
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$57000.
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$192531.
IFRS Multiple Choice Question 04
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Crane Company, a company
who maintains its accounting records using IFRS, manufactures furniture. Crane
sells an order to Save-A Lot Furniture in exchange for a zero-interest-bearing
$75000 note due from the customer in two years. Since there is no stated interest
rate on the note, the controller uses the current market rate of 6% to derive
the present value. Based on this information and the incorporation of the time
value of money, which of the following would be recorded by Crane to recognize
this sale?
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A credit to Notes
Receivable for $66750.
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A debit to Discount on
Notes Receivable for $4500.
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A credit to Sales
Revenue for $75000.
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A debit to Notes
Receivable for $66750.
IFRS Multiple Choice Question 07
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Bonita Industries uses
IFRS for its financial reporting. It produces machines that sell globally. All
sales are accompanied by a one-year warranty. At the end of the year, the
company has the following data:
• 3600 units were sold during the year.
• The trend over the past five years has been that 3% of the machines were
defective in some way and had to be repaired. Of this 3%, half required a full
replacement at a cost of $3100 per unit and half were able to be repaired at an
average cost of $310.
What is the expected value of the warranty cost provision?
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$167400
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$368280
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$184140
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$334800
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USA 
India