Ch. 10 - Time Value of MoneyWorksheetSee all chapters
 Ch. 1 - Introduction to Accounting 1hr & 21mins 0% complete Worksheet Ch. 2 - Transaction Analysis 1hr & 14mins 0% complete Worksheet Ch. 3 - Accrual Accounting Concepts 2hrs & 38mins 0% complete Worksheet Ch. 4 - Merchandising Operations 2hrs & 31mins 0% complete Worksheet Ch. 5 - Inventory 1hr & 55mins 0% complete Worksheet Ch. 6 - Internal Controls and Reporting Cash 1hr & 16mins 0% complete Worksheet Ch. 7 - Receivables and Investments 3hrs & 17mins 0% complete Worksheet Ch. 8 - Long Lived Assets 5hrs & 6mins 0% complete Worksheet Ch. 9 - Current Liabilities 2hrs & 19mins 0% complete Worksheet Ch. 10 - Time Value of Money 1hr & 27mins 0% complete Worksheet Ch. 11 - Long Term Liabilities 2hrs & 45mins 0% complete Worksheet Ch. 12 - Stockholders' Equity 2hrs & 15mins 0% complete Worksheet Ch. 13 - Statement of Cash Flows 2hrs & 24mins 0% complete Worksheet Ch. 14 - Financial Statement Analysis 5hrs & 27mins 0% complete Worksheet Ch. 15 - GAAP vs IFRS 56mins 0% complete Worksheet

# Using Time Value of Money Tables

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Concept #1: Time Value of Money Tables: Equations

Concept #2: Time Value of Money Table: Present Value of Lump-Sum

Concept #3: Time Value of Money Table: Present Value of Annuity

Example #1: Using Time Value of Money Tables

Practice: You have won the lottery! You are given two options for your payout:

1. You can receive $540,000 today 2. You can receive$50,000 annually each year for the next twenty years

Assuming the interest rate is 6%, which is the better option?

Concept #4: Time Value of Money Tables: Bonds Payable

Example #2: TVM Tables and Bonds Payable

Practice: ABC Company issues 1,000 bonds with a face value of \$1,000 maturing in eight years. The bonds pay 8% interest semi-annually and the current market rate of interest is 12%. What is the total amount of cash received from the bond issuance?