Financial Accounting,
7th Edition
by Michelle Hanlon
Complete Chapter Solutions Manual
are included (Ch 1 to 12)
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, Appendix A
Compound Interest
and the Time-Value of Money
EXERCISES
EA-1.
a. Future value, 4%, 6 years: $6,000 x 1.26532 = $7,591.92
b. Future value, 6%, 6 years: $6,000 x 1.41852 = $8,511.12
c. Future value, 8%, 6 years: $6,000 x 1.58687 = $9,521.22
EA-2.
a. Future value, 12%, 4 years: $4,800 x 1.57352 = $7,552.90
b. Future value, 3%, 16 quarters: $4,800 x 1.60471 = $7,702.61
c. Future value, 1%, 48 months: $4,800 x 1.612226 = $7,738.69
The last calculation relies on a future value factor that is not in the table at the end of
Appendix A. The solution can be determined using a financial calculator or using Excel.
The Excel calculation is as follows:
2023
Solutions Manual, Appendix A A-1
, EA-3.
Present value, 1% per quarter, 8 quarters: $18,000 x 0.92348 = $16,623.
EA-4.
Present value, 6%, 4 years: $30,000 x 0.79209 = $23,763.
2023
A-2 Financial Accounting, 7th Edition
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