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Bundle: Financial & Managerial Accounting, 14th + Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th + Working Papers, ... & Managerial Accounting, 14th + CengageNOWv2,
14th Edition
ISBN: 9781337804011
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 11, Problem 11.8EX
A.
To determine
Present Value: The value of today’s amount expected to be paid or received in the future at a compound interest rate is called as present value.
To calculate: The present value of $50,000 (Future amount).
B.
To determine
To explain: The reason why present value of $33,778 is less than the future value of $50,000.
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Students have asked these similar questions
Present Value of Amounts Due
Assume that you are going to receive $730,000 in 10 years. The current market rate of interest is 4.5%.
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Chapter 11 Solutions
Bundle: Financial & Managerial Accounting, 14th + Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th + Working Papers, ... & Managerial Accounting, 14th + CengageNOWv2,
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