ACC 231 isu exam 2 Matching Question
and answers verified to pass 2025/2026
1. On May 1, 2017, Goldberg Company sold Present value of annuity
some ma-
chinery to Newlin Company on an installment
contract due basis. The contract required five
equal annual pay- ments, with the first payment
due on May 1, 2017.
What present value concept is appropriate for this
sit- uation?
2. On June 1, 2017, Seymour Inc. purchased a Future value of single sum
new ma- chine that it does not have to pay for
until June 1, 2019. The total payment on June
1, 2019, will include both principal and interest.
Assuming interest at a 12% rate, the cost of
the machine would be the total payment
multiplied by what time value of money
concept? future value of annuity due
3. Costner Inc. wishes to know how much money
it will have available in 5 years if five equal
amounts of
$35,000 are invested, with the first amount
invested immediately. What interest table is
appropriate for this situation?
4. Megan Hoffman invests in a "jumbo" $200,000, 3-year Future value of
single sum
certificate of deposit at First Wisconsin Bank.
What table would be used to determine the
amount accu- mulated at the end of 3 years?
5. How much should Bob deposit at the end of 6-month
each period to
1/
5
, accumulate $20,000 when he grad- uates in 4 FVOA
years assuming that he can earn an annual
rate of 10% compounded semiannually?
6. What rate of interest must Connie earn on
an invest- ment of $60,000 to be able to PVAD
withdraw $9,000 at the beginning of each year
for the next 10 years?
2/
5
and answers verified to pass 2025/2026
1. On May 1, 2017, Goldberg Company sold Present value of annuity
some ma-
chinery to Newlin Company on an installment
contract due basis. The contract required five
equal annual pay- ments, with the first payment
due on May 1, 2017.
What present value concept is appropriate for this
sit- uation?
2. On June 1, 2017, Seymour Inc. purchased a Future value of single sum
new ma- chine that it does not have to pay for
until June 1, 2019. The total payment on June
1, 2019, will include both principal and interest.
Assuming interest at a 12% rate, the cost of
the machine would be the total payment
multiplied by what time value of money
concept? future value of annuity due
3. Costner Inc. wishes to know how much money
it will have available in 5 years if five equal
amounts of
$35,000 are invested, with the first amount
invested immediately. What interest table is
appropriate for this situation?
4. Megan Hoffman invests in a "jumbo" $200,000, 3-year Future value of
single sum
certificate of deposit at First Wisconsin Bank.
What table would be used to determine the
amount accu- mulated at the end of 3 years?
5. How much should Bob deposit at the end of 6-month
each period to
1/
5
, accumulate $20,000 when he grad- uates in 4 FVOA
years assuming that he can earn an annual
rate of 10% compounded semiannually?
6. What rate of interest must Connie earn on
an invest- ment of $60,000 to be able to PVAD
withdraw $9,000 at the beginning of each year
for the next 10 years?
2/
5
