ACCTMIS 2200 Lecture 12: 12. Time Value of Money Lab

• School: Ohio State University
• Department: Accounting and Management Info
• Course: ACCTMIS 2200
• Professor: Marc Smith

Document Summary

Annuity = series of equal payments with same intervals. The following information is provided relating to a stream of cash flows: Assume an interest rate of 12% compounded annually. Required: calculate the present value of the stream of cash flows above (payments at the end of the year) (payments at the beginning of the year) Pv = 20,000 x 4. 111 = 82,220 [1-6] Pv = 30,000 x 3. 037 x 1. 12 = 102,043. 2. 82,220 + 51,735. 90 = 133,955. 9: mack aroni, a bank robber, is worried about his retirement. Thus, mack has decided to start a savings account. Mack deposits annually his net share of the "loot", which consists of. ,000 per year for three years beginning january 1, 2015. 2017 (after making the third deposit), and spends the rest of 2017 and most of 2018 in jail. He resumes his savings plan with semi-annual deposits of ,000 each beginning january i, 2019 (each payment is made on january i and.