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Chapter 6 Problems

Chapter 6 Problems

Q Please complete the following from Chapter 6. If applicable, show all computations for partial credit. E6.6 E6.7 E6.11 PreviousNext

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Chapter 6 Problems E6.6 A Future Value = Amount*(1+Rate) ^Years Using the values provided in the question, we get, Future Value after 10 Years = 12,000*(1+5%) ^10 = $19,546.74 B. Future Value of Annual Sinking Fund Deposits = FV (10%,15,600000,0) = $19,063,489.02 C Present Value = Future Value/(1+Rate) ^Years where Future Value indicates Amount of Deferred Bonus Present Value of Bonus Today = 70,000/ (1+4%) ^10 = $47,289.49