SKimmel, Financial Accounting, 8e FINANCIAL ACCOUNTING (20 actice Assignment Gra
ID: 2561887 • Letter: S
Question
SKimmel, Financial Accounting, 8e FINANCIAL ACCOUNTING (20 actice Assignment Gradebook ORION Downloadable eTextbook gnment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Brief Exercise G-9 (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What is the present value of $25,600 due 12 periods from now, discounted at 5%? (Round answer to 2 decimal places, e.g. 25.25) Present value (b) what is the present value of $25,600 to be received at the end of each of 10 periods, discounted at 11%? (Round answer to 2 decimal places, e.g. 25.25.) Present value LINK TO TEXT SAVE FOR LATER SUBMIT ANSWER Question Attempts: 0 of 2 usedExplanation / Answer
Answer a.
Future Value = $25,600
Number of period = 12
Discount rate = 5%
Present Value = Future Value * PV of $1 (5%, 12)
Present Value = $25,600 * 0.55684
Present Value = $14,255.10
Answer b.
Annual Payment = $25,600
Number of period = 10
Discount rate = 11%
Present Value = Annual Payment * PV of an annuity of $1 (11%, 10)
Present Value = $25,600 * 5.88923
Present Value = $150,764.29
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.