Accounting Study Guide by AccountingInfo.com

Present Value, Future Value

U.S. GAAP Codification, Accounting by Topic, Accounting Terms

Financial Accounting, Intermediate Accounting, Advanced Accounting

Simple and Compound Interest Methods

Present Value, Future Value

Future Value = Present Value + Interest Amount
      Interest amount = Principal amount x Interest rate

Future Value of a Single Present Amount
      Future value = Present amount x (1 + r)ⁿ
          r = interest rate
          n = number of periods

Future Value of an Ordinary Annuity
      Future value = Annuity Amount x [(1 + r)ⁿ - 1] / r
          r = interest rate
          n = number of periods

Present Value of a Single Future Amount
      Present value = Future Amount x 1 / (1 + r)ⁿ
          r = interest rate
          n = number of periods

Present Value of an Ordinary Annuity
      Present value = Annuity Amount x [1 - 1/(1 + r)ⁿ] / r
          r = interest rate
          n = number of periods

Ordinary Annuity: Same amount is paid at the end of each period.
   Annuity due: Same amount is paid at the beginning of each period.

Tables for PV and FV Factors

Table of Future Value Factors for a Single Present Amount (pdf)
Table of Present Value Factors for a Single Future Amount (pdf)
Table of Future Value Factors for an Ordinary Annuity (pdf)
Table of Present Value Factors for an Ordinary Annuity (pdf)

How to derive PV and FV factors (pdf)

U.S. GAAP Codification

Accounting Topics

Inventory Valuation Methods

Depreciation Methods

Revenue Recognition Principle

Accrual Basis vs. Cash Basis Accounting

Basics of Journal Entries

Ratios for Financial Statement Analysis

Overview of Financial Statements