Financial Accounting
Financial Accounting
7th Edition
ISBN: 9781118162286
Author: Kimmel, Paul D.
Publisher: John Wiley & Sons Inc
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Chapter AD, Problem AD.23BE
To determine

Present Value: The value of today’s amount to be paid or received in the future at a compound interest rate is called as present value. The following formula is used to calculate the present value of an amount:

Present value of an amount =Future value (1+interest rate)number of periods

To calculate: the number of periods of an annuity.

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How To Calculate The Present Value of an Annuity; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=RU-osjAs6hE;License: Standard Youtube License