This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Annuity = R ( FVFOA n , i ) = $7,000 (31.77248) = $222,407.36 d . Present Value of an Ordinary Annuity = R ( PVFOA n , i ) = $7,000 (12.46221) = $87,235.47 E66 a . Future Value = PV ( FVF n , i ) = $12,000 (1+.10) 10 = $12,000 (2.59374) = $31,125 b . Future Value of an Ordinary Annuity = R ( FVFOA n , i ) = $600,000 ( (1+.10)15 _ 1 / .10 ) = $600,000 (31.77248) = $19,063,489 Chapter 6: Accounting and the Time Value of Money Tiffany Watt Homework October 13, 2010 AC 301 01 = $936,511 Deficiency Based on the calculations, Walters should accept the immediate bonus of $40,000 instead of the $70,000 deferred bonus payable in 10 years. Future Value = PV ( FVF n , i ) = $40,000 ( FVF 10 , 8% ) = $40,000 (1+.08) 10 = $40,000 (2.15892) = $86,357 c . Present Value = FV ( PVF n , i ) = $70,000 ( PVF 10 , 8% ) = $70,000 ( 1 / (1+.08) 10 ) = $70,000 (.46319) = $32,423...
View
Full
Document
This note was uploaded on 09/01/2011 for the course BUSINESS 101 taught by Professor  during the Spring '11 term at Mississippi Valley State University.
 Spring '11
 
 Accounting

Click to edit the document details