Exercise 6-5 Intermediate Accounting

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

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

This preview shows document pages 1 - 2. Sign up to view the full document.

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