BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
1 views

Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions

LuAnn Bean will receive 57,000 in 7 years.

Required:

What is the present value at 7% compounded annually? (Note: Round answers to two decimal places.)

To determine

Concept introduction:

Time value of money:

Time value of money is the concept that differentiates the value of money received today and the value of same money received in future. According to this concept, the same amount of money to be received in future shall have lower present value (value of the money today) due to the interest that could be earned on that money.

To calculate:

The Present value of future cash receipts.

Explanation

The Present value of future cash receipts is calculated as follows:

Future value (A) $ 7,000
Annual return % 7%

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What three steps are involved in delegation? Explain each.

Foundations of Business (MindTap Course List)

What actions can be taken to reduce these risks?

Fundamentals of Information Systems

How many records does the file contain? How many fields are there per record?

Database Systems: Design, Implementation, & Management

Describe the Big Data phenomenon.

Database Systems: Design, Implementation, & Management

Give example of forms of energy and explain what they quantify?

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

What is the purpose of work coordinate systems?

Precision Machining Technology (MindTap Course List)

Explain the relationship between logical and physical design.

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

Given that P=120lb and Q=130lb, find the rectangular representation of P+Q.

International Edition---engineering Mechanics: Statics, 4th Edition

What is the master budget? An operating budget? A financial budget?

Cornerstones of Cost Management (Cornerstones Series)

Suppose a new process was developed that could be used to make oil out of seawater. The equipment required is q...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

In what ways is economics a science?

Essentials of Economics (MindTap Course List)