ACCT101-Handout10

ACCT101-Handout10 - Acct 101 L12, L13, L16 Handout #10...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Acct 101 L12, L13, L16 Handout #10 1 Present Value and Bonds Payable Time value of money Future value: ) ( * Factor Interest Value Future * ) 1 ( * , 0 0 0 n i n n FVIF PV PV i PV FV If compounded m times during one period: mn n m i PV FV ) 1 ( * 0 Effective annual interest rate: 1 ) 1 ( m m i Present value: ) ( * Factor Interest Value Present * ) 1 ( , 0 n i n n n n PVIF FV FV i FV PV Future value, annuity Payment at the end of each period: Year 1 Year 2 Year 3 Year 4 Year 5 a aaaa ) ( * ) 1 ( , 1 n i n t t n n FVIFA a i a FVA Payment at the beginning of each period: Year 1 Year 2 Year 3 Year 4 Year 5 a a a a a ) 1 ( * ) ( * , i FVIFA a FVA n i n
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Acct 101 L12, L13, L16 Handout #10 2 Present value, annuity Payment at the end of each period: Year 1 Year 2 Year 3 Year 4 Year 5 a aaaa ) ( * ) 1 ( 1 , 1 n i n t t PVIFA a i a PVA Payments at the beginning of each period: Year 1 Year 2 Year 3 Year 4 Year 5 a a a a a ) 1 ( * ) ( * , i PVIFA a PVA n i n
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/07/2009 for the course ACCT ACCT 101 taught by Professor H during the Fall '08 term at HKUST.

Page1 / 5

ACCT101-Handout10 - Acct 101 L12, L13, L16 Handout #10...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online