Tag: accounting

PV Annuity DUE USE BEG MODE!!!!! (2 Methods) Ch. 5.4,”Method 1:All we need to do is find the present value of the other payments using the ordinary annuity method and then simply add in the first payment. Using your financial calculator (after setting it up), the keystrokes will be:-1000 PMT8 I / Yr2 NSolve: PVpmts 2 and 3 = $1,783.26Annuity due = $1,783.26 + $1,000 = $2,783.26Method 2:Enter Begin Mode (Figure 5-2).-1000 PMT8 I / Yr3 NSolve: PVannuity due = $2

Accrual Accounting

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Discount Rate I,”In finance jargon, we usually refer to the rate at which we move money through time as the discount rate, regardless of whether we are compounding (i.e., calculating the future value of a sum) or discounting (i.e., calculating the present value of a sum). This rate actually has several names (i.e., the discount rate, the cost of capital, the required rate of return, the interest rate) and several possible abbreviations (i.e., r, i, k, y)

Accrual Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Discount Rate I,”In finance jargon,[…]

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