Videos
Present value: The actual or current worth of a future sum of money that is invested refers to the present value. Generally, the present value of an investment will be lesser than its future value or it might remain the same. It is useful to calculate bond yields,
Future value: A nominal value of an asset or investment at a specific period with an assumed interest rate is termed future value. Future value is can be computed by multiplying the amount invested at present with the future value factor.
(a)
To determine the future value.
Given scenario: An amount of $4,000 is deposited at the beginning of 20 periods. It is compounded at an interest rate of 8%.
(b)
To determine the present value.
Given scenario: An amount of $2,500 is to be received at the beginning of 30 periods each. It is discounted at a rate of 5% compound interest.
(c)
To determine the future value as of the end of the fifteenth period.
Given scenario: Fifteen periodic payments of $2,000 are made at the beginning of each period. It is compounded at 10% interest rate.
(d)
To determine the present value of the given scenario using the interest table.
Given scenario: $1,000 is received at the beginning of 6 periods each. It is discounted at 9% compound interest.
Trending nowThis is a popular solution!
Chapter 6 Solutions
INTERMEDIATE ACCTG. LL-W/ACCESS
- Dakota Manufacturing uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine hours. During April, the company used a denominator activity of 40,000 machine hours in computing its predetermined overhead rate. However, 52,000 standard machine hours were allowed for the month's actual production. If the fixed manufacturing overhead volume variance for April was $9,000 unfavorable, then the total budgeted fixed manufacturing overhead cost for the month was $_. HELParrow_forwardCan you explain this general accounting question using accurate calculation methods?arrow_forward5 POINTarrow_forward
- Hello tutor please given General accounting question answer do fast and properly explain all answerarrow_forwardGabbana Manufacturing estimated that machine hours for the year would be 30,000 hours and overhead (all fixed) would be $150,000. Gabbana applies its overhead on the basis of machine hours. During the year, all overhead costs were exactly as planned ($150,000). There was $12,000 in over-applied overhead. How many machine-hours were worked during the period?arrow_forwardSub.General Accountarrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education