Accounting Test Study Guide

Accounting Test Study Guide - Study Guide for Accounting...

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Study Guide for Accounting Test Appendix C Future Value of a Single Sum Is the value at a future date of a given amount invested, assuming compound interest FV= p x (1+i)^n Future Value of an Annuity Is the sum of all the payments plus the accumulated compound interest on them Only difference between single sum and annuity is that annuity is payments each year while single sum is just amount multiplied by interest for a set number of years Present Value of a Single Sum The process of determining the present value is discounting the future amount Present Value= Future Value/ (1+i)^n Present Value of an Annuity Is the value now of a series of future receipts or payments, discounted assuming compounded interest Only difference between annuity and single sum of present value is that in annuity you find the present value for every single year or period that it takes place to get total future amount Present Value of a Bond Function of three variables: Payment amounts, length of time until the amounts
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Accounting Test Study Guide - Study Guide for Accounting...

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