Determine the present value of $5,000 to be received 4 years from now at the continuously discounted rate of 8 percent. a) $6,886 b) $3,631 c) $4,616 d) None of the above I think the answer is D, none of the above, because 8% deducted annually from a starting point of 5000 would leave you with 3582 after 4 years.
still 3 present
Interest rates are also known as discount rates because in order to calculate the present value of a future amount, the future amount must be discounted back to the present
Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04
Ratios or fractions can be used to present proportions.
If based on the present value of annuities Taking a factor of 9.1 Present value of the 15 years annuities is approx $76,506
Determine the present value of $5,000 to be received 4 years from now at the continuously discounted rate of 8 percent. a) $6,886 b) $3,631 c) $4,616 d) None of the above I think the answer is D, none of the above, because 8% deducted annually from a starting point of 5000 would leave you with 3582 after 4 years.
discounted payback period
Accountants must have a working knowledge of compound interest, annuities, and present value concepts because of their application to numerous types of business events and transactions which require proper valuation and presentation. These concepts are applied in the following areas: (1) sinking funds, (2) installment contracts, (3) pensions, (4) long-term assets, (5) leases, (6) notes receivable and payable, (7) business combinations, and (8) amortization of premiums and discounts.
40 percent
still 3 present
Present value, also known as present discounted value, is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk. Present value calculations are widely used in business and economics to provide a means to compare cash flows at different times on a meaningful "like to like" basis.
Interest rates are also known as discount rates because in order to calculate the present value of a future amount, the future amount must be discounted back to the present
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cash method is when you get cash, method is when u give it
present, current, after, future, following, subsequent
Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04