69 196 65 x 08 35 929 03

*69, 196. 65 x. 08 **35, 929. 03 x. 08 = 2, 874. 32

How much will today’s dollar be worth in the future?

If You Deposit $100 In An Account Earning 6%, How Much Would You Have In The Account After 1 Year?

If You Deposit $100 In An Account Earning 6%, How Much Would You Have In The Account After 5 Years?

If You Deposit $100 In An Account Earning 6%, How Much Would You Have In The Account After 5 Years?

If You Deposit $100 In An Account Earning 6%, How Much Would You Have In The Account After 5 Years? 100

If you will receive $100 one year from now, what is the PV of that $100 if the relevant interest rate is 6%?

If you will receive $100 one year from now, what is the PV of that $100 if the relevant interest rate is 6%?

The Value of a Series of Payments

What is the PV of $1, 000 at the end of each of the next 3 years, if the interest rate is 8%?

Interest = Principal × Stated Rate × Time

Finding The Proceeds Of A Bond Issue

Determine the proceeds from this bond issue.

Assets = Liabilities + Owners’ Equity

Determine the issue price of these bonds.

The bonds payable will be recorded at face value of $1 million. the The excess of the proceeds over the par value will be recorded in another liability account called premium on bonds payable. Together, these two amounts equal the book value or carrying value of the bonds.