Solutions For Financial Accounting, 7th Edition Hanlon (All Chapters included)

Financial Accounting,
7th Edition
by Michelle Hanlon


Complete Chapter Solutions Manual
are included (Ch 1 to 12)


** Immediate Download
** Swift Response
** All Chapters included
** Cases/Exercises included

, 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