Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. present value of an annuity determine the present

Present Value of an Annuity Determine the present value of $180,000 to be received at...

70.2K

Verified Solution

Question

Accounting

image

Present Value of an Annuity Determine the present value of $180,000 to be received at the end of each of four years, using an interest rate of 10%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year Total present value b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar. c. Why is the present value of the four $180,000 cash receipts less than the $720,000 to be received in the future? The present value is less due to the compounding of interest over the 4 years

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

Using the arguments based on quantum mechanics and the Boltzmann energy distribution explain briefly: a) why real molecules...

Calculus
1.2K views

Let f x x 5 Click on the graph where the corresponding points are located...

Calculus
1.2K views

Let x be a continuous random variable over [a, b] with probability density function f....

Accounting
1.2K views

Q1- Ledger accounts of a company on September 30, 2020 include the following accounts before...

Accounting
1.2K views

Prahom Earnings per Share Price Earnings Ratio Dividend The following information...

Accounting
1.2K views

Marcus is the CEO of ABC Corporation, a publicly traded. ompany, and earns of $1,500,00....

Accounting
1.2K views

Answer the following questions. Hint: Use the accounting equation. At the beginning of...

Accounting
1.2K views

28 Norwood, Inc. is considering three different independent investment opportunities. The present value of future...

Accounting
1.2K views

E8-8 (Algo) Recording and Reporting Allowance for Doubtful Accounts Using the Percentage of Credit Sales...

Accounting
1.2K views

5. Doris is retiring today and she plans to buy a new car for $25,000...

Accounting
1.2K views

2/ Cul de las siguientes afirmaciones es verdadera? Opcin multiple ...

Accounting
1.2K views

The following data were drawn from the records of Perez Corporation. Required a. Prepare a...