Managerial Accounting: Tools for Business Decision Making
Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Chapter A, Problem A.19BE
To determine

Present value: This is the amount of future value reduced or discounted at a rate of interest till particular current date.

Formula to compute present value:

Presentvalue} = {Future value ×(Present value factor of $1 at interest rate for time periods)}

To calculate: The number of periods T must wait to receive an amount of $75,000.

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