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Unformatted text preview: he s ame amount. (Om it the "$" sign in your re sponse .)
General Journal Debit
n/ r n/ r
n/ r Credit
n/ r d. W hat would be the effec t of an inc reas e in the rate of return on the required annual pay ment?
Re duce s the a m ount of pa ym e nt re quire d by Tilm a n. Learning Objective: B-03 Explain three bas ic ways in which Learning Objective: B-04 Com pute future am ounts and the
decis ion m akers apply the tim e value of m oney.
inves tm ents neces s ary to accum ulate future am ounts . W orksheet Tilman Company is required by a bond indenture to mak e equal annual pay ments to a bond s ink ing fund at
the end of eac h of the nex t 20 y ears . The s ink ing fund will earn 8 perc ent interes t and mus t ac c umulate to
a total of $500,000 at the end of the 20-y ear period. Us e Table FA–2 (in Ex hibit B-4)
a . Calc ulate the amount of the annual pay ments . (Round your FV fa ctor to 3 de cim a l pla ce s a nd fina l
a nsw e r to the ne a re st dolla r a m ount. Om it the "...
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This note was uploaded on 01/30/2014 for the course ACC 111 taught by Professor Angela during the Fall '08 term at Delaware County CC.
- Fall '08