Principles Of Accounting 11th Edition Pdf Download

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11th Edition Magic The Gathering

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  • Step 1 of 2

    1.

    Calculate interestrates:

    In Table 1 (present value of 1), the first column shows thenumber of periods for which discounting is to be done and the toprow (i.e., the head of each of the subsequent columns) shows thecorresponding discounting rates for the period.

    Annual Rate

    Number of years involved

    Compounding per year

    (a) applicable interest rate

    (b) applicable number of periods

    Case A

    12%

    6

    Annually

    12%

    6

    Case B

    10%

    15

    Annually

    10%

    15

    Case C

    8%

    12

    Semi-annually

    =4%

    =24

  • Step 2 of 2

    2.

    Calculate number ofperiods:

    In Table 2 (present value of annuity of 1), the intersectionsshow the present value of 1 (uniform payments) to be received overa period of time. First column represents the number of discountingperiods and the top of the subsequent columns shows the discountingrates for the corresponding periods.

    Annual Rate

    Number of years involved

    Number of payments involved

    Frequency of payments

    (a) applicable interest rate

    (b) applicable number of periods

    Case A

    8%

    20

    20

    Annually

    8%

    20

    Case B

    10%

    5

    5

    Annually

    10%

    5

    Case C

    12%

    4

    8

    Semi-annually

    =6%

    8

Principles Of Accounting 11th Edition Pdf Download

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