The University of Texas at AustinMcCombs School of Business, Business Foundations ProgramACC 310F: Foundations of AccountingClass Notes – Chapter 16 Part 2 and Appendix to Chapter 6Source Document (from Chapter 4 and 6)Today- $5,000X 0.12 =6001 year- $5,600X 0.12 =672Year 2- $6,272Time Value of Money•Future Value of $1•Present Value of $1•Future Value of an Annuity of $1•Present Value of an Annuity of $1Time Value of Money CalculationsFuture Value of $1PV x FV factor = FVPresent Value of $1FV x PV factor = PVFuture Value of an Annuity of $1Annuity Amount x FVa factor = FVaPresent Value of an Annuity of $1Annuity Amount x PVa factor = PVaPage1