Financial Accounting: Tools for Business Decision Making, 8th Edition
Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Chapter AG, Problem G.5BE
To determine

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Numberofperiods

Future value of an annuity refers to an amount received or paid equally for a specified number of periods with equal intervals for the investment made.

To Compute: The future value of a single amount and of an annuity amount (if the interest compounded annually).

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