The following table values are provided for use in solving the following indepen

Question

The following table values are provided for use in solving the following independent problems (show computations): n- 5 6% 1.3382 7473 5.6371 7% 1.4026 7130 5.7507 4.1002 896 1.4693 6806 5.8666 .9927 Value Future value of $1 Present value of $1 Future value of snnuity of $1 Present value of annuity of S1 *Ordinary annuity 4.2124 A. Company A deposited $20,000 in a savings account on January 1, 20A that will accumulate 6% interest each December 31, 1. What will be the fund balance at the end of Year 5? 2. How much interest will be earned during Year 2? B. Company B needs to accumulate a $50,000 fund by making five equal annual deposits. Assuming a 7% interest accumulation, how m uch must be deposited at the end of each year? C.Company C has a new machine that has an estimated life of five years and a $5,000 residual value. Assuming an 8% interest rate, what is the present value of the estimated residual value? D. Company D owes a $50,000 debt that is now due (January 1,20A). Arrangements have been made to pay it off in five equal annual installments starting December 31, 20A (an ordinary annuity situation). Assuming 8% interest, how much will be the annual payment?

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A1. Fund balance at the year end 5 20000* Future Value of $1 6% 20000*1.3382 26764 A2. Interest for Year 2 Base Amount 20000 First year Interest 6% 1200 Total Amount 21200 Second Year Interes 6% 1272 B. Amount to be deposited at the end of each year 50000/Future value of Annuity $1 7% 50000/5.7507                                                   8,695 C. Present Value of Salvage Value 5000*Present Value of $1 8% 5000*0.6806 3403 d. Annual Payment 50000/Present Value of Annuity $1 8% 50000/5.8666 8523

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