BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
1 views

What is the present value on January 1, 2019, of $10,000 to be received on January 1, 2023, and discounted at 6% compounded quarterly?

To determine

Determine the present value on January 1, 2019.

Explanation

Present value of a single sum:

Present value of a single sum is the today’s amount of future value of a single sum discounted at a rate of interest till particular current date.

Future value –$10,000

Interest rate (i) – 1.5% per quarter (6%4)

Number of years from January 1, 2019 to January 1, 2023 is 16 quarter.

Determine the present value on January 1, 2019.

PV=FV×(pn=16,i=1

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 are the key features of a POS system?

Accounting Information Systems

What are the positive and negative effects of specialization?

Foundations of Business (MindTap Course List)

What are the two main causes of market failure? Give an example of each.

Principles of Macroeconomics (MindTap Course List)

How is a DBMS different from a database?

Pkg Acc Infor Systems MS VISIO CD

What does it mean to adopt a maturity matching approach to financing assets, including current assets? How woul...

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