Question
Present and future value tables of 1 at 11% are presented below. PV of $1 FV of $1 PVA of $1 FVA of $1 1
Present and future value tables of 1 at 11% are presented below.
| PV of $1 | FV of $1 | PVA of $1 | FVA of $1 | |
| 1 | 0.90090 | 1.11000 | 0.90090 | 1.0000 |
| 2 | 0.81162 | 1.23210 | 1.71252 | 2.1100 |
| 3 | 0.73119 | 1.36763 | 2.44371 | 3.3421 |
| 4 | 0.65873 | 1.51807 | 3.10245 | 4.7097 |
| 5 | 0.59345 | 1.68506 | 3.69590 | 6.2278 |
| 6 | 0.53464 | 1.87041 | 4.23054 | 7.9129 |
| Polo Publishers purchased a multi-color offset press with terms of $30,000 down and a noninterest-bearing note requiring payment of $10,000 at the end of each year for three years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at: |
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The Speed Of Risk Lessons Learned On The Audit Trail
Authors: Richard F. Chambers, CIA, QIAL, CGAP, CCSA, CRMA
2nd Edition
163454059X, 978-1634540599
