I\'m working on my assignment for Intermediate Accounting and having a hard time
ID: 2489904 • Letter: I
Question
I'm working on my assignment for Intermediate Accounting and having a hard time understanding this.
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2016, of a five-period annual annuity of $5,000 under each of the following situations: question #3 The first payment received in December 31,2017, and interest is compounded quartely ( i=) (n=) ( deposit ) PV>12/31/2016
12/31/2017 3% $5000
12/31/2018 3% 5,000
12/31/2019 3% 5,000
12/31/2020 3% 5,000
,12/31/2021 3% 5,000
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2016, of a five-period annual annuity of $5,000 under each of the following situations: question #3 The first payment received in December 31,2017, and interest is compounded quartely ( i=) (n=) ( deposit ) PV>12/31/2016
12/31/2017 3% $5000
12/31/2018 3% 5,000
12/31/2019 3% 5,000
12/31/2020 3% 5,000
,12/31/2021 3% 5,000
Explanation / Answer
year (n) Present value factor@12% [can be obtained from present value table] deposit present value factor *Deposit [PVat 12/31/2016] 1 .89286 5000 4464.3 2 .79719 5000 3985.95 3 .71178 5000 3558.9 4 .63552 5000 3177.6 5 .56743 5000 2837.15 Total present value of deposti 18023.9