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Ch. 10 - Time Value of MoneyWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Accounting
Ch. 2 - Transaction Analysis
Ch. 3 - Accrual Accounting Concepts
Ch. 4 - Merchandising Operations
Ch. 5 - Inventory
Ch. 6 - Internal Controls and Reporting Cash
Ch. 7 - Receivables and Investments
Ch. 8 - Long Lived Assets
Ch. 9 - Current Liabilities
Ch. 10 - Time Value of Money
Ch. 11 - Long Term Liabilities
Ch. 12 - Stockholders' Equity
Ch. 13 - Statement of Cash Flows
Ch. 14 - Financial Statement Analysis
Ch. 15 - GAAP vs IFRS
Sections
Time Value of Money Equations
Using Time Value of Money Tables
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Concept #1: Time Value of Money Tables: Equations

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

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

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Example #1: Using Time Value of Money Tables

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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

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Example #2: TVM Tables and Bonds Payable

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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?

Previous SectionTime Value of Money Equations
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