On 12-31-19, Austin entered into an agreement that required Austin to pay a vendor $50 every year
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Question:
On 12-31-19, Austin entered into an agreement that required Austin to pay a vendor $50 every year on 12-31 until 2064. The agreement required Austin to make the first annual payment on 12-31-20. Assume the market rate of interest for Austin is 3%. As of 12-31-19 what was the present value of Austin’s obligation?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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