Acc 201 Chapter 9 part 2 final exam

Acc 201 Chapter 9 part 2 final exam - compound interest*To...

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Present Value = [1 / (divide) (1 + i)^n ] x Amount o Present Values of an Annuity is a series of periodic cash receipts or payments that are equal in amount each interest period; an Annuity must: 1) an equal dollar amount each interest period. 2) Interest periods of equal length(year, half-year, quarter, month) 3) An Equal interest rate each interest period. *Future Value – is the sum which an amount will increase as the result of
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Unformatted text preview: compound interest. *To Solve a future value problem, you must have : 1)Amount to be invested, 2) Interest rate (i) the amount will earn, 3) Number of periods (n) in which the amount will earn interest. o Future Values of a Single Amount – How much money you will have in the future as the result of investing a certain amount in the present. Future Value of an annuity – includes compound interest on each payment from...
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