21.doc-Accounting, 9e, Global Edition (H...
21.doc-Accounting, 9e, Global Edition (Horngren) Chapter
Showing 33-35 out of 86
21.doc-Accounting, 9e, Global Editi...
21.doc-Accounting, 9e, Global Edition (Horngren) Chapter
##### Page 33
17) If Alice Godfried invests \$14,000 today at a rate of 4% compounding yearly, what will the value of the
investment be in 8 years?
Future
Value of
\$1
4%
5%
6%
7%
8%
9%
1
1.040
1.050
1.060
1.070
1.080
1.090
2
1.082
1.103
1.124
1.145
1.166
1.188
3
1.125
1.158
1.191
1.225
1.260
1.295
4
1.170
1.216
1.262
1.311
1.360
1.412
5
1.217
1.276
1.338
1.403
1.469
1.539
6
1.265
1.340
1.419
1.501
1.587
1.677
7
1.316
1.407
1.504
1.606
1.714
1.828
8
1.369
1.477
1.594
1.718
1.851
1.993
9
1.423
1.551
1.689
1.838
1.999
2.172
10
1.480
1.629
1.791
1.967
2.159
2.367
A) \$18,311
B) \$19,967
C) \$19,166
D) \$19,000
C
Explanation:
C) Calculations:
1.369 × \$14,000 = \$19,166
Diff: 2
LO:
21-3
EOC Ref:
S21-8
AACSB:
Analytic Skills
Critical Thinking
AICPA Functional:
Measurement
33

##### Page 34
18) If Teddy Godfried invests \$10,000 today in an account compounding yearly, and he wants his money to at least
double within 10 years, what interest rate is needed?
Future
Value of
\$1
4%
5%
6%
7%
8%
9%
1
1.040
1.050
1.060
1.070
1.080
1.090
2
1.082
1.103
1.124
1.145
1.166
1.188
3
1.125
1.158
1.191
1.225
1.260
1.295
4
1.170
1.216
1.262
1.311
1.360
1.412
5
1.217
1.276
1.338
1.403
1.469
1.539
6
1.265
1.340
1.419
1.501
1.587
1.677
7
1.316
1.407
1.504
1.606
1.714
1.828
8
1.369
1.477
1.594
1.718
1.851
1.993
9
1.423
1.551
1.689
1.838
1.999
2.172
10
1.480
1.629
1.791
1.967
2.159
2.367
A) 5%
B) 6%
C) 7%
D) 8%
D
Explanation:
D) Calculations:
2.159 × \$10,000 = \$21,590
Diff: 2
LO:
21-3
EOC Ref:
S21-8
AACSB:
Analytic Skills
Critical Thinking
AICPA Functional:
Measurement
34

##### Page 35
19) \$23,000 invested today in an account with 5% interest compounding yearly will grow to what amount in 6
years?
Future
Value of
\$1
4%
5%
6%
7%
8%
9%
1
1.040
1.050
1.060
1.070
1.080
1.090
2
1.082
1.103
1.124
1.145
1.166
1.188
3
1.125
1.158
1.191
1.225
1.260
1.295
4
1.170
1.216
1.262
1.311
1.360
1.412
5
1.217
1.276
1.338
1.403
1.469
1.539
6
1.265
1.340
1.419
1.501
1.587
1.677
7
1.316
1.407
1.504
1.606
1.714
1.828
8
1.369
1.477
1.594
1.718
1.851
1.993
9
1.423
1.551
1.689
1.838
1.999
2.172
10
1.480
1.629
1.791
1.967
2.159
2.367
A) \$29,800
B) \$22,490
C) \$30,820
D) \$32,637
C
Explanation:
C) Calculations:
1.340 × \$23,000 = \$30,820
Diff: 2
LO:
21-3
EOC Ref:
S21-8
AACSB:
Analytic Skills
Critical Thinking
AICPA Functional:
Measurement
35

Browse thousands of Study Materials & Solutions from your Favorite Schools
San Jose State University
San_Jose_State_University
School:
Managerial_Accounting
Course:
Great resource for chem class. Had all the past labs and assignments
Leland P.
Santa Clara University
Introducing Study Plan
Using AI Tools to Help you understand and remember your course concepts better and faster than any other resource.
Find the best videos to learn every concept in that course from Youtube and Tiktok without searching.
Save All Relavent Videos & Materials and access anytime and anywhere
Prepare Smart and Guarantee better grades