Exercise 6-5 Intermediate Accounting

Exercise 6-5 Intermediate Accounting - Let's work an...

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Let's work an example Future Value of an Annuity problem in class. Please take a look at the Homework Exercise 6-5 We will use the same problem using an annuity of \$4,000 and interest rate of 10%. Please post your answer to this thread, and then I will post the solution by Wednesday night. Post this example 1 FVA 4000*(4.6410) 18564 Future value of an ordinary annuity of \$1: n=4, i=10% (from Table 3) Example based on Homework Problem 6-5-1 Graphic working of the problem (proof) date prior balance annuity beg bal rate interest 12/31/2009 0 4000 4,000.00 10% 400.00 12/31/2010 4,400.00 4000 8,400.00 10% 840.00 12/31/2011 9,240.00 4000 13,240.00 10% 1,324.00 12/31/2012 14,564.00 4000 18,564.00 10% 1,856.40 Example based on Homework Exercise 6-5-2 Graphic working of the problem (proof) date prior balance annuity beg bal rate interest 12/31/2008 0 4000 4,000.00 10% 400.00 12/31/2009 4,400.00 4000 8,400.00 10% 840.00 12/31/2010 9,240.00 4000 13,240.00 10% 1,324.00 12/31/2011 14,564.00 4000 18,564.00 10% 1,856.40 12/31/2012 20,420.40 0 20,420.40 10% 2,042.04 Example based on Homework Exercise 6-5-3

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Exercise 6-5 Intermediate Accounting - Let's work an...

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