s. irs5,000 is deposited in a savings account today, what amount will be availab
ID: 2436728 • Letter: S
Question
s. irs5,000 is deposited in a savings account today, what amount will be available three years from today? A) $5,000+1.260 B) $5,000 x 1.260 C) $5,000 x 1.080 x 3 D) ($5.000 1.080) + (S5.000 1.166) + (S5,000 1.260) 6. What amount should be deposited in a bank account today to grow to $15,000 three years from today? A) $15,000 1.260 B) $15,000 x 1.260 x 3 C) $15,000 1.260 D) $15,000+ 1.080 x 3 7, which of the following tables would show the smallest value for an interest rate of 5% for six periods? A) Future value of i B) Present value of 1 C) Future value of an ordinary annuity of I D) Present value of an ordinary annuity of 1 8. If a savings account pays interest at 4% compounded semi-annually, then the aniount of $1 left on deposit for 5 years would be found in a table using A) 5 periods at 4%. B) 5periods at 196. C) D) 10 periods at 2%. 20 periods at 1%. 9. What is interest? A) Payment for the use of money C) Return on capital. D) Loan. B) An equity investment. 10. On June 1, 2017, Gannon Company sold some equipment to Pitts Company. The two companies entered into an installment sales contract at a rate of 8%. The contract required 8 equal annual payments with the first payment due on June 1,2017. What type of compound interest table is appropriate for this situation? A) Present value of an annuity due of 1 table. B) Present value of an ordinary annuity of 1 table. C) Future amount of an ordinary annuity of 1 table D) Future amount of 1 table.Explanation / Answer
5. The answer is "B) 5,000 x 1.260"
6. the answer is "A) 15,000 x 1.260"
7. the answer is "B) Present value of 1"
8. The answer is "C) 10 periods at 2%"
9. The answer is "A) Payment for the use of money"
10. The answer is " A) Present value of an annuity due of 1 table"
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