W4_Outline - tables. IX. Describe or show how to calculate...

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Accounting 306 Intermediate Accounting I Workshop 4 Outline I. Distinguish between simple interest and compound interest. II. Define the following fundamental variables that apply to compound interest problems. a. Interest rate b. Number of time periods c. Future value d. Present value III. Describe or show how to calculate the future value of a single sum using time value tables. IV. Describe or show how to calculate the present value of a single sum using time value tables. V. Define an annuity. Define a rent. Distinguish between an ordinary annuity and an annuity due. VI. Describe or show how to calculate the future value of an ordinary annuity using time value tables.
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VII. Describe or show how to calculate the future value of an annuity due using time value tables. VIII. Describe or show how to calculate the present value of an ordinary annuity using time value
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Unformatted text preview: tables. IX. Describe or show how to calculate the present value of an annuity due using time value tables. X. Solving for other unknowns a. Describe or show how to solve for the number of periods. b. Describe or show how to solve for the interest rate. c. Describe or show how to solve for the periodic rent. XI. Valuation of long-term bonds a. What two cash flows does a long-term bond payable produce? Be specific as to whether these cash flows represent a single sum or an annuity. b. How do you calculate the periodic interest payments? What rate is used to calculate the periodic interest payments? c. What rate is used to discount these cash flows to present value?...
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W4_Outline - tables. IX. Describe or show how to calculate...

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