Post on 09-Sep-2018
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Appendix B
Time Value of Money
True / False Questions
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1. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Interest is the borrower's payment to the owner of an asset for its use. True False
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2. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
From the perspective of an account holder, a savings account is a liability with interest. True False
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3. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
An interest rate is also called a discount rate. True False
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4. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Present and future value computations enable companies to measure or estimate the interest component of holding assets or liabilities over time. True False
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5. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The number of periods in a present value calculation may only be expressed in years.
True False
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6. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The present value factor for determining the present value of $6,300 to be received three years from today at 10% interest compounded semiannually is 0.7462. True False
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7. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know the worth of the asset at the future date. True False
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8. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time. True False
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9. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The present value of $2,000 to be received nine years from today at 8% interest compounded annually is $1,000. True False
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10. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Sandra has a savings account that has accumulated to $50,000. She started with $28,225, and earned interest at 10% compounded annually. It took her five years to accumulate the $50,000. True False
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11. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Future value can be found if the interest rate (i), the number of periods (n), and the present value (p) are known. True False
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12. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-24Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The number of periods in a future value calculation may only be expressed in years. True False
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13. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-26Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The future value of $100 compounded semiannually for 3 years at 12% equals $140.49. True False
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14. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-28Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total of $7,210.65 in 5 years. True False
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15. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
An annuity is a series of equal payments occurring at equal intervals. True False
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16. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The present value of an annuity table can be used to determine the value today of a series of payments to be received in the future. True False
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17. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-34Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A series of equal payments made or received at the end of each period is an ordinary annuity. True False
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18. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The present value of $5,000 per year for three years at 12% compounded annually is $12,009. True False
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19. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-38Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
With deposits of $5,000 at the end of each year, you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%. True False
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20. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The future value of an ordinary annuity is the accumulated value of each annuity payment excluding interest as of the date of the final payment. True False
Multiple Choice Questions
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21. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Interest may be defined as:
A. Time.
B. A borrower's payment to the owner of an asset for its use.
C. The future value of a present amount.
D. Always a liability.
E. Always an asset.
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22. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
If we want to know the value of present-day assets at a future date, we can use:
A. Present value computations.
B. Annuity computations.
C. Interest computations.
D. Future value computations.
E. Earnings computations.
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23. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-46Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Which interest rate column would you use from a present value or future value table for 8% interest compounded quarterly?
A. 12%
B. 6%
C. 3%
D. 2%
E. 1%
AppB-47Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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24. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-48Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is considering investing in a project that is expected to return $350,000 four years from now. How much is the company willing to pay for this investment if the company requires a 12% return?
A. $55,606
B. $137,681
C. $222,425
D. $265,764
E. $350,000
AppB-49Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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25. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-50Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Jason has a loan that requires a single payment of $4,000 at the end of 3 years. The loan's interest rate is 6%, compounded semiannually. How much did Jason borrow?
A. $3,358.40
B. $4,000.00
C. $3,660.40
D. $4,776.40
E. $3,350.00
AppB-51Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
26. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-52Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Patricia wants to invest a sum of money today that will yield $10,000 at the end of 6 years. Assuming she can earn an interest rate of 6% compounded annually, how much must she invest today?
A. $7,050
B. $9,400
C. $6,000
D. $8,836
E. $8,306
AppB-53Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
27. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-54Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today?
A. $50,000.00
B. $47,500.00
C. $45,125.00
D. $38,608.50
E. $100,000.00
AppB-55Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
28. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Cody invests $1,800 per year from his summer wages at a 4% annual interest rate. He plans to take a European vacation at the end of 4 years when he graduates from college. How much will he have available to spend on his vacation?
A. $7,787.52
B. $7,488.00
C. $6,912.00
D. $7,200.00
E. $7,643.70
AppB-57Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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29. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-58Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Jessica received a gift of $7,500 at the time of her high school graduation. She invests it in an account that yields 10% compounded semi-annually. What will the value of Jessica's investment be at the end of 5 years?
A. $8,250.00
B. $11,250.00
C. $12,216.75
D. $9,375.00
E. $10,500.00
AppB-59Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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30. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company expects to invest $5,000 today at 12% annual interest and plans to receive $15,529 at the end of the investment period. How many years will elapse before the company accumulates the $15,529?
A. 0.322 years
B. 3.1058 years
C. 5 years
D. 8 years
E. 10 years
AppB-61Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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31. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Keisha has $3,500 now and plans on investing it in a fund that will pay her 12% interest compounded quarterly. How much will Keisha have accumulated after 2 years?
A. $4,433.80
B. $4,340.00
C. $4,390.40
D. $3,920.00
E. $3,500.00
AppB-63Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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32. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-64Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
How long will it take an investment of $25,000 at 6% compounded annually to accumulate to a total of $35,462.50?
A. 4 years
B. 5 years
C. 6 years
D. 2 years
E. 10 years
AppB-65Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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33. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
What interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000?
A. 5%
B. 8%
C. 10%
D. 12%
E. 15%
AppB-67Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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34. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Russell Company has acquired a building with a loan that requires payments of $20,000 every six months for 5 years. The annual interest rate on the loan is 12%. What is the present value of the building?
A. $72,096
B. $113,004
C. $147,202
D. $86,590
E. $200,000
AppB-69Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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35. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-70Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Marc Lewis expects an investment of $25,000 to return $6,595 annually. His investment is earning 10% per year. How many annual payments will he receive?
A. Five payments
B. Six payments
C. Four payments
D. Three payments
E. More than six payments
AppB-71Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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36. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is considering an investment that will return $22,000 semiannually at the end of each semiannual period for 4 years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment?
A. Not more than $69,738
B. Not more than $139,476
C. Not more than $88,000
D. Not more than $142,190
E. Not more than $176,000
AppB-73Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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37. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?
A. $24,838.00
B. $21,668.80
C. $31,049.00
D. $40,000.00
E. $44,800.00
AppB-75Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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38. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
What amount can you borrow if you make seven semiannual payments of $4,000 at an 8% annual rate of interest?
A. $28,000.00
B. $25,760.00
C. $31,049.00
D. $24,008.40
E. $35,691.20
AppB-77Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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39. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-78Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
An individual is planning to set-up an education fund for her daughter. She plans to invest $7,000 annually at the end of each year. She expects to withdraw money from the fund at the end of 9 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 9 years?
A. $87,416
B. $68,040
C. $50,400
D. $126,000
E. $45,360
AppB-79Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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40. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-80Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
An individual is planning to set-up an education fund for his grandchildren. He plans to invest $10,000 annually at the end of each year. He expects to withdraw money from the fund at the end of 10 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 10 years?
A. $46,320
B. $67,107
C. $100,000
D. $144,870
E. $215,890
AppB-81Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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41. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-82Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Clara is setting up a retirement fund, and she plans on depositing $5,000 per year in an investment that will pay 7% annual interest. How long will it take her to reach her retirement goal of $69,080?
A. 13.816 years
B. 0.072 years
C. 10 years
D. 20 years
E. 5 years
AppB-83Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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42. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The Masterson family is setting up a vacation fund, and they plan on depositing $1,000 per quarter in an investment that will pay 12% annual interest. What amount will they have available for their vacation at the end of 2 years?
A. $8,000.00
B. $8,960.00
C. $8,892.30
D. $8,240.00
E. $8,487.20
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43. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-86Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?
A. $141,000
B. $112,095
C. $100,000
D. $45,000
E. $105,000
AppB-87Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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44. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Jackson has a loan that requires a $17,000 lump sum payment at the end of four years. The interest rate on the loan is 5%, compounded annually. How much did Jackson borrow today?
A. $16,150
B. $13,600
C. $11,504
D. $13,986
E. $15,343
AppB-89Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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45. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?
A. $58,204
B. $47,840
C. $58,075
D. $57,040
E. $62,582
Short Answer Questions
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46. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Define interest.
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47. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Explain the concept of the present value of a single amount.
AppB-95Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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48. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-96Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Explain the concept of the future value of a single amount.
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McGraw-Hill Education.
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49. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-98Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Explain the concept of the present value of an annuity.
AppB-99Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
50. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Explain the concept of the future value of an annuity.
Essay Questions
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51. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company needs to have $200,000 in 4 years, and will create a fund to insure that the $200,000 will be available. If it can earn a 7% return compounded annually, how much must the company invest in the fund today to equal the $200,000 at the end of 4 years?
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52. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?
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53. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Kelsey has a loan that requires a $25,000 lump sum payment at the end of three years. The interest rate on the loan is 5%, compounded annually. How much did Kelsey borrow today?
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54. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Jackson has a loan that requires a $17,000 lump sum payment at the end of four years. The interest rate on the loan is 5%, compounded annually. How much did Jackson borrow today?
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55. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Mason Company has acquired a machine from a dealer that requires a payment of $45,000 at the end of five years. This transaction includes interest at 8%, compounded semiannually. What is the value of the machine today?
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56. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Protocol Company has acquired equipment from a dealer that requires equal payments of $12,000 at the end of the next five years. This transaction includes interest at 9%, compounded annually. What is the value of the machine today?
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57. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is creating a fund today by depositing $65,763. The fund will grow to $90,000 after 8 years. What annual interest rate is the company earning on the fund?
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58. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is setting aside $21,354 today, and wishes to have $30,000 at the end of three years for a down payment on a piece of property. What interest rate must the company earn?
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59. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company has $50,000 today to invest in a fund that will earn 7%. How much will the fund contain at the end of 8 years?
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60. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?
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61. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Trey has $105,000 now. He has a loan of $175,000 that he must pay at the end of 5 years. He can invest his $105,000 at 10% interest compounded semiannually. Will Trey have enough to pay his loan at the end of the 5 years?
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62. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Garcia Brass Fixtures is planning on replacing one of its machines in five years by making a one-time deposit of $20,000 today and four yearly contributions of $5,000 beginning at the end of year 1. The deposits will earn 10% interest. How much money will Garcia have accumulated at the end of five years to replace the machine?
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63. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company borrows money from the bank by promising to make 6 annual year-end payments of $27,000 each. How much is the company able to borrow if the interest rate is 9%?
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64. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company borrows money from the bank by promising to make 8 semiannual payments of $9,000 each. How much is the company able to borrow if the interest rate is 10% compounded semiannually?
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65. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
When you reach retirement age, you will have one fund of $100,000 from which you are going to make annual withdrawals of $14,702. The fund will earn 6% per year. For how many years will you be able to draw an even amount of $14,702?
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66. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
City Peewee League borrowed $883,212, and must make annual year-end payments of $120,000 each. If City's interest rate is 6%, how many years will it take to pay off the loan?
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67. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Giuliani Co. lends $524,210 to Craig Corporation. The terms of the loan require that Craig make six semiannual period-end payments of $100,000 each. What semiannual interest rate is Craig paying on the loan?
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68. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is beginning a savings plan. It will be saving $15,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 10% interest?
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69. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is beginning a savings plan to purchase a new building. It will be saving $43,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 9% interest?
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70. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
You are little late planning your retirement, but are looking forward to retiring in 10 years. You expect to save $6,000 a year at an annual rate of 8%. How much will you have accumulated when you retire?
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71. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is setting up a sinking fund to pay off $8,654,000 in bonds that are due in 7 years. The fund will earn 7% interest, and the company intends to put away a series of equal year-end amounts for 7 years. What is the amount of the annual deposits that the company must make?
Fill in the Blank Questions
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72. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
_____________ is a borrower's payment to the owner of an asset for its use. ________________________________________
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73. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The interest rate is also called the __________________ rate. ________________________________________
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74. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
To calculate present value of an amount, two factors are required: The __________________ and the ___________________. ________________________________________
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75. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
An _____________ is a series of equal payments occurring at equal intervals. ________________________________________
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76. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The future value of an ________________ annuity is the accumulated value of each annuity payment with interest as of the date of the final payment. ________________________________________
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Appendix B Time Value of Money Answer Key
True / False Questions
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1. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Interest is the borrower's payment to the owner of an asset for its use. TRUE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Measurement
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values.Topic: Present and Future Value Concepts
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2. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-157Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
From the perspective of an account holder, a savings account is a liability with interest. FALSE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Measurement
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values.Topic: Present and Future Value Concepts
AppB-158Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
3. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-159Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
An interest rate is also called a discount rate. TRUE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Measurement
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-160Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
4. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-161Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Present and future value computations enable companies to measure or estimate the interest component of holding assets or liabilities over time. TRUE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Measurement
Blooms: UnderstandDifficulty: 2 Medium
Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values.Topic: Present and Future Value Concepts
AppB-162Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
5. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-163Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The number of periods in a present value calculation may only be expressed in years. FALSE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Measurement
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-164Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
6. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-165Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The present value factor for determining the present value of $6,300 to be received three years from today at 10% interest compounded semiannually is 0.7462. TRUE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Measurement
Blooms: UnderstandDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-166Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
7. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-167Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know the worth of the asset at the future date. FALSE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Measurement
Blooms: UnderstandDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-168Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-169Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time. TRUE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Measurement
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.
Topic: Future Value of a Single AmountTopic: Present Value of a Single Amount
AppB-170Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-171Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The present value of $2,000 to be received nine years from today at 8% interest compounded annually is $1,000. TRUE
Present Value = Future Value * Interest Factor for 9 years @8%Present Value = $2,000 * 0.5002 = $1,000
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Measurement
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-172Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
10. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-173Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Sandra has a savings account that has accumulated to $50,000. She started with $28,225, and earned interest at 10% compounded annually. It took her five years to accumulate the $50,000. FALSE
PV Factor = Present Value/Future ValuePV Factor = $28,225/$50,000 = 0.56450.5645 is the present value of 1 factor, 10%, 6 periods
AACSB: Analytical ThinkingAICPA: BB Critical Thinking
AICPA: BB IndustryAICPA: FN Measurement
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-174Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
11. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-175Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Future value can be found if the interest rate (i), the number of periods (n), and the present value (p) are known. TRUE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Measurement
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
AppB-176Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
12. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-177Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The number of periods in a future value calculation may only be expressed in years. FALSE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Measurement
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
AppB-178Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
13. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-179Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The future value of $100 compounded semiannually for 3 years at 12% equals $140.49. FALSE
Future Value = Present Value * Interest FactorFuture Value = $100 * 1.4185 = $141.85
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Measurement
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
AppB-180Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
14. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-181Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total of $7,210.65 in 5 years. FALSE
FV Factor = Future Value/Present ValueFV Factor = $7,210.65/$5,300 = 1.36051.3605 is the future value of $1 factor, 8%, 4 periods
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Measurement
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
AppB-182Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
15. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-183Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
An annuity is a series of equal payments occurring at equal intervals. TRUE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-184Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
16. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-185Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The present value of an annuity table can be used to determine the value today of a series of payments to be received in the future. TRUE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-186Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
17. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-187Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A series of equal payments made or received at the end of each period is an ordinary annuity. TRUE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-188Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
18. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-189Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The present value of $5,000 per year for three years at 12% compounded annually is $12,009. TRUE
2.4018 is the PV factor on the Present Value of an Annuity table; n = 3; i = 12%Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $5,000 * 2.4018 = $12,009
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-190Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
19. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-191Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
With deposits of $5,000 at the end of each year, you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%. TRUE
7.7156 is the FV factor on the Future Value of an Annuity table; n = 6; i = 10%Future Value of an Annuity = Annuity * FV FactorFuture Value of an Annuity = $5,000 * 7.7156 = $38,5787.7156 is the interest factor on the Future Value of an Annuity table; n = 6; i = 10%
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
AppB-192Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
20. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-193Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The future value of an ordinary annuity is the accumulated value of each annuity payment excluding interest as of the date of the final payment. FALSE
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: UnderstandDifficulty: 2 Medium
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
Multiple Choice Questions
AppB-194Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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21. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Interest may be defined as:
A. Time.
B. A borrower's payment to the owner of an asset for its use.
C. The future value of a present amount.
D. Always a liability.
E. Always an asset.
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values.Topic: Present and Future Value Concepts
AppB-196Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
22. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-197Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
If we want to know the value of present-day assets at a future date, we can use:
A. Present value computations.
B. Annuity computations.
C. Interest computations.
D. Future value computations.
E. Earnings computations.
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: UnderstandDifficulty: 2 Medium
Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values.Topic: Present and Future Value Concepts
AppB-198Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
23. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-199Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Which interest rate column would you use from a present value or future value table for 8% interest compounded quarterly?
A. 12%
B. 6%
C. 3%
D. 2%
E. 1%
An 8% annual interest rate is divided by 4 to find the quarterly rate.
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: UnderstandDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.
Topic: Future Value of a Single AmountTopic: Present Value of a Single Amount
AppB-200Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
24. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-201Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is considering investing in a project that is expected to return $350,000 four years from now. How much is the company willing to pay for this investment if the company requires a 12% return?
A. $55,606
B. $137,681
C. $222,425
D. $265,764
E. $350,000
The PV factor on the Present Value table when n = 4 and i = 12% is 0.6355 Present Value = Future Value * PV Factor Present Value = $350,000 * 0.6355 = $222,425
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-202Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
25. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-203Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Jason has a loan that requires a single payment of $4,000 at the end of 3 years. The loan's interest rate is 6%, compounded semiannually. How much did Jason borrow?
A. $3,358.40
B. $4,000.00
C. $3,660.40
D. $4,776.40
E. $3,350.00
3 years = 6 semiannual periods; 6% annual interest = 3% semiannually The PV factor on the Present Value table when n = 6 and i = 3% is 0.8375 Present Value = Future Value * PV Factor Present Value = $4,000 * 0.8375 = $3,350.00
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-204Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
26. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-205Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Patricia wants to invest a sum of money today that will yield $10,000 at the end of 6 years. Assuming she can earn an interest rate of 6% compounded annually, how much must she invest today?
A. $7,050
B. $9,400
C. $6,000
D. $8,836
E. $8,306
The PV factor on the Present Value table when n = 6 and i = 6% is 0.7050 Present Value = Future Value * PV Factor Present Value = $10,000 * 0.7050 = $7,050.00
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-206Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
27. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-207Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today?
A. $50,000.00
B. $47,500.00
C. $45,125.00
D. $38,608.50
E. $100,000.00
The PV factor on the Present Value of an Annuity table when n = 10 and i = 5% is 7.7217 Present Value = Future Annuity Value * PV Factor Present Value = $5,000 * 7.7217 = $38,608.50
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-208Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
28. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-209Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Cody invests $1,800 per year from his summer wages at a 4% annual interest rate. He plans to take a European vacation at the end of 4 years when he graduates from college. How much will he have available to spend on his vacation?
A. $7,787.52
B. $7,488.00
C. $6,912.00
D. $7,200.00
E. $7,643.70
The FV factor on the Future Value of an Annuity table when n = 4 and i = 4% is 4.2465 Future Value = Annuity Value * FV Factor Future Value = $1,800 * 4.2465 = $7,643.70
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
AppB-210Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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29. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-211Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Jessica received a gift of $7,500 at the time of her high school graduation. She invests it in an account that yields 10% compounded semi-annually. What will the value of Jessica's investment be at the end of 5 years? A. $8,250.0
0 B. $11,250.
00 C. $12,216.
75 D. $9,375.0
0 E. $10,500.
00
Five years = 10 semiannual periods and a 10% annual interest rate = 5% semiannually The FV factor on the Future Value of 1 table when n = 10 and i = 5% is 1.6289 Future Value = Present Value * FV Factor Future Value = $7,500 * 1.6289 = $12,216.75
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
AppB-212Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
30. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-213Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company expects to invest $5,000 today at 12% annual interest and plans to receive $15,529 at the end of the investment period. How many years will elapse before the company accumulates the $15,529?
A. 0.322 years
B. 3.1058 years
C. 5 years
D. 8 years
E. 10 years
Present Value = Future Value * PV Factor$5,000 = $15,529 * PV FactorPV Factor = 0.32200.3220 is the PV factor on the Present Value table; i = 12%; n = 10
Or, Alternative Solution:Future Value = Present Value * FV Factor$15,529 = $5,000 * FV FactorInterest Factor = 3.1058;
3.1058 is the FV factor on the Future Value table; i = 12%; n = 10
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.
Topic: Future Value of a Single AmountTopic: Present Value of a Single Amount
AppB-214Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
31. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-215Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Keisha has $3,500 now and plans on investing it in a fund that will pay her 12% interest compounded quarterly. How much will Keisha have accumulated after 2 years?
A. $4,433.80
B. $4,340.00
C. $4,390.40
D. $3,920.00
E. $3,500.00
Two years = 8 quarterly periods and a 12% annual interest rate = 3% quarterlyThe FV factor on the Future Value of 1 table where i = 3% and n = 8 is 1.2668Future Value = Present Value * FV FactorFuture Value = $3,500 * 1.2668 = $4,433.80
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
AppB-216Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
32. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-217Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
How long will it take an investment of $25,000 at 6% compounded annually to accumulate to a total of $35,462.50?
A. 4 years
B. 5 years
C. 6 years
D. 2 years
E. 10 years
Present Value = Future Value * PV Factor$25,000 = $35,462.50 * PV Factor; PV Factor = 0.70500.7050 is the interest factor on the Present Value table; i = 6%; n = 6
Alternative Solution: Future Value = Present Value * FV Factor$35,462.50 = $25,000 * FV Factor; FV Factor = 1.41851.4185 is the interest factor on the Future Value table; i = 6%; n = 6
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.
Topic: Future Value of a Single AmountTopic: Present Value of a Single Amount
AppB-218Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
33. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-219Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
What interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000?
A. 5%
B. 8%
C. 10%
D. 12%
E. 15%
Present Value = Future Value * PV Factor$5,000 = $6,802.50 * PV Factor; PV Factor = 0.73500.7350 is the PV factor on the Present Value table; n = 4; i = 8%
Or, Alternative Solution: Future Value = Present Value * FV Factor$6,802.50 = $5,000 * FV Factor; Interest Factor = 1.36051.3605 is the FV factor on the Future Value table; n = 4; i = 8%
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.
Topic: Future Value of a Single AmountTopic: Present Value of a Single Amount
AppB-220Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
34. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-221Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Russell Company has acquired a building with a loan that requires payments of $20,000 every six months for 5 years. The annual interest rate on the loan is 12%. What is the present value of the building?
A. $72,096
B. $113,004
C. $147,202
D. $86,590
E. $200,000
The PV factor on the Present Value of an Annuity table when n = 5 and i = 12% is 7.3601.Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $20,000 * 7.3601 = $147,202
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-222Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
35. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-223Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Marc Lewis expects an investment of $25,000 to return $6,595 annually. His investment is earning 10% per year. How many annual payments will he receive?
A. Five payments
B. Six payments
C. Four payments
D. Three payments
E. More than six payments
Present Value of an Annuity = Annuity * PV Factor$25,000 = $6,595 * PV Factor; PV Factor = 0.3.79083.7908 is the PV factor on the Present Value of an Annuity table; i = 10%; n = 5
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-224Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
36. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-225Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is considering an investment that will return $22,000 semiannually at the end of each semiannual period for 4 years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment?
A. Not more than $69,738
B. Not more than $139,476
C. Not more than $88,000
D. Not more than $142,190
E. Not more than $176,000
The PV factor on the Present Value of an Annuity table when n = 8 and i = 5% is 6.4632. Present Value of an Annuity = Annuity * PV Factor Present Value of an Annuity = $22,000 * 6.4632 = $142,190
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-226Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
37. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-227Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?
A. $24,838.00
B. $21,668.80
C. $31,049.00
D. $40,000.00
E. $44,800.00
The PV factor on the Present Value of an Annuity table when n = 6 and i = 3% is 5.4172.Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $4,000 * 5.4172 = $21,668.80
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-228Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
38. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-229Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
What amount can you borrow if you make seven semiannual payments of $4,000 at an 8% annual rate of interest?
A. $28,000.00
B. $25,760.00
C. $31,049.00
D. $24,008.40
E. $35,691.20
An 8% annual interest rate = 4% semiannuallyThe PV factor on the Present Value of an Annuity table when n = 7 and i = 4% is 6.0021.Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $4,000 * 6.0021 = $24,008.40
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-230Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
39. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-231Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
An individual is planning to set-up an education fund for her daughter. She plans to invest $7,000 annually at the end of each year. She expects to withdraw money from the fund at the end of 9 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 9 years? A. $87,41
6 B. $68,04
0 C. $50,40
0 D. $126,00
0 E. $45,36
0
The FV factor on the Future Value of an Annuity table when n = 9 and i = 8% is 12.488. Future Value of an Annuity = Annuity * FV Factor Future Value of an Annuity = $7,000 * 12.488 = $87,416
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
AppB-232Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
40. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-233Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
An individual is planning to set-up an education fund for his grandchildren. He plans to invest $10,000 annually at the end of each year. He expects to withdraw money from the fund at the end of 10 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 10 years? A. $46,32
0 B. $67,10
7 C. $100,00
0 D. $144,87
0 E. $215,89
0
The FV factor on the Future Value of an Annuity table when n = 10 and i = 8% is 14.487. Future Value of an Annuity = Annuity * FV Factor Future Value of an Annuity = $10,000 * 14.487 = $144,870
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
AppB-234Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
41. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-235Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Clara is setting up a retirement fund, and she plans on depositing $5,000 per year in an investment that will pay 7% annual interest. How long will it take her to reach her retirement goal of $69,080?
A. 13.816 years
B. 0.072 years
C. 10 years
D. 20 years
E. 5 years
Future Value of an Annuity = Annuity * Interest Factor $69,080 = $5,000 * Interest Factor; Interest Factor = 13.816 13.816 is the interest factor on the Future Value of an Annuity table; i = 7%; n = 10
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
AppB-236Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
42. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-237Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The Masterson family is setting up a vacation fund, and they plan on depositing $1,000 per quarter in an investment that will pay 12% annual interest. What amount will they have available for their vacation at the end of 2 years? A. $8,000.0
0 B. $8,960.0
0 C. $8,892.3
0 D. $8,240.0
0 E. $8,487.2
0
Two years = 8 semiannual periods and a 12% annual interest rate = 3% semiannuallyThe FV factor on the Future Value of an Annuity table when n = 8; i = 3% is 8.8923Annuity * FV Factor = Future Value of an Annuity$1,000 * 8.8923 = $8,892.30
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
AppB-238Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
43. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-239Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?
A. $141,000
B. $112,095
C. $100,000
D. $45,000
E. $105,000
The PV factor on the Present Value of 1 table when n = 5 and i = 6% is 0.7473Present Value = Future Value * PV FactorPresent Value = $150,000 * 0.7473 = $112,095
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-240Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
44. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-241Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Jackson has a loan that requires a $17,000 lump sum payment at the end of four years. The interest rate on the loan is 5%, compounded annually. How much did Jackson borrow today?
A. $16,150
B. $13,600
C. $11,504
D. $13,986
E. $15,343
The PV factor on the Present Value of 1 table when n = 4 and i = 5% is 0.8227Present Value = Future Value * PV FactorPresent Value = $17,000 * 0.8227 = $13,986
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-242Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
45. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-243Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?
A. $58,204
B. $47,840
C. $58,075
D. $57,040
E. $62,582
The FV factor on the Future Value of 1 table when n = 6 and i = 4% is 1.2653Future Value = Present Value * FV FactorFuture Value = $46,000 *1.2653 = $58,204
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
Short Answer Questions
AppB-244Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
46. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-245Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Define interest.
Interest represents a borrower's payment to an owner of an asset in exchange for its use.
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values.Topic: Present and Future Value Concepts
AppB-246Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
47. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-247Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Explain the concept of the present value of a single amount.
The present value of a single amount is used to find today's value for an amount to be received at a future date. It is equal to the amount that can be invested now at the specified interest rate to yield the future value.
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-248Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
48. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-249Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Explain the concept of the future value of a single amount.
The future value of a single amount is equal to the present amount that would accumulate at a future date at a specified rate of interest.
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
AppB-250Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
49. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-251Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Explain the concept of the present value of an annuity.
The present value of an annuity is the amount that can be invested now at the specified interest rate to yield a future series of equal periodic payments.
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-252Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
50. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-253Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Explain the concept of the future value of an annuity.
The future value of an annuity is the amount invested today at a specified rate of interest that would accumulate at the date of the final periodic payment.
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
Essay Questions
AppB-254Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
51. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
AppB-255Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company needs to have $200,000 in 4 years, and will create a fund to insure that the $200,000 will be available. If it can earn a 7% return compounded annually, how much must the company invest in the fund today to equal the $200,000 at the end of 4 years?
$152,580
Feedback: The PV factor on the Present Value of 1 table when n = 4 and i = 7% is 0.7629Present Value = Future Value * PV FactorPresent Value = $200,000 * 0.7629 = $152,580
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-256Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
52. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-257Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?
$112,095
Feedback: The PV factor on the Present Value of 1 table when n = 5 and i = 6% is 0.7473Present Value = Future Value * PV FactorPresent Value = $150,000 * 0.7473 = $112,095
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-258Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
53. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-259Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Kelsey has a loan that requires a $25,000 lump sum payment at the end of three years. The interest rate on the loan is 5%, compounded annually. How much did Kelsey borrow today?
$21,595
Feedback: The PV factor on the Present Value of 1 table when n = 3 and i = 5% is 0.8638Present Value = Future Value * PV FactorPresent Value = $25,000 * 0.8638 = $21,595
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-260Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
54. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-261Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Jackson has a loan that requires a $17,000 lump sum payment at the end of four years. The interest rate on the loan is 5%, compounded annually. How much did Jackson borrow today?
$13,896
Feedback: The PV factor on the Present Value of 1 table when n = 4 and i = 5% is 0.8227Present Value = Future Value * PV FactorPresent Value = $17,000 * 0.8227 = $13,986
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-262Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
55. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-263Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Mason Company has acquired a machine from a dealer that requires a payment of $45,000 at the end of five years. This transaction includes interest at 8%, compounded semiannually. What is the value of the machine today?
$30,402
Feedback: Five years = 10 semiannual periods at an 8% annual interest rate = 4% semiannuallyThe PV factor on the Present Value of 1 table when n = 10 and i = 4% is 0.6756Present Value = Future Value * PV FactorPresent Value = $45,000 * 0.6756 = $30,402
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-264Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
56. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-265Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Protocol Company has acquired equipment from a dealer that requires equal payments of $12,000 at the end of the next five years. This transaction includes interest at 9%, compounded annually. What is the value of the machine today?
$46,676
Feedback: The PV factor on the Present Value of an Annuity table when n = 5 and i = 9% is 3.8897Present Value = Future Value * PV of an Annuity FactorPresent Value = $12,000 * 3.8897 = $46,676
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-266Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
57. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-267Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is creating a fund today by depositing $65,763. The fund will grow to $90,000 after 8 years. What annual interest rate is the company earning on the fund?
4%
Feedback: Present Value = Future Value * PV Factor$65,763 = $90,000 * PV Factor; PV Factor = 0.73070.7307 is the PV factor on the Present Value table; n = 8; i = 4%
Or, Alternative Solution: Future Value = Present Value * FV Factor$90,000 = $65,763 * FV Factor; FV Factor = 1.36861.3686 is the FV factor on the Future Value table; n = 8; i = 4%
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.
Topic: Future Value of a Single AmountTopic: Present Value of a Single Amount
AppB-268Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
58. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-269Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is setting aside $21,354 today, and wishes to have $30,000 at the end of three years for a down payment on a piece of property. What interest rate must the company earn?
12%
Feedback: Present Value = Future Value * PV Factor$21,354 = $30,000 * PV Factor; PV Factor = 0.71180.7118 is the PV factor on the Present Value table; n = 3; i = 12%
Or, Alternative Solution: Future Value = Present Value * FV Factor$30,000 = $21,354 * FV Factor; FV Factor = 1.40491.3605 is the FV factor on the Future Value table; n = 3; i = 12%
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.
Topic: Future Value of a Single AmountTopic: Present Value of a Single Amount
AppB-270Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
59. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-271Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company has $50,000 today to invest in a fund that will earn 7%. How much will the fund contain at the end of 8 years?
$85,910
Feedback: Future Value = Present Value * FV FactorFuture Value = $50,000 *1.7182 = $85,9101.7182 is the FV factor on the Future Value table; n = 8; i = 7%
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
AppB-272Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
60. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-273Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?
$58,204
Feedback: The FV factor on the Future Value of 1 table when n = 6 and i = 4% is 1.2653Future Value = Present Value * FV FactorFuture Value = $46,000 *1.2653 = $58,204
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
AppB-274Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
61. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-275Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Trey has $105,000 now. He has a loan of $175,000 that he must pay at the end of 5 years. He can invest his $105,000 at 10% interest compounded semiannually. Will Trey have enough to pay his loan at the end of the 5 years?
No, Trey will be $3,965.50 short of his goal of $175,000.
Feedback: Future Value = Present Value * Interest FactorFuture Value = $105,000 * 1.6289 = $171,034.501.6289 is the interest factor on the Future Value table; n = 5 * 2 = 10; i = 10/2 = 5%Goal of $175,000 - Future Value of $171,034.50 = Shortage of $3,965.50
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount
AppB-276Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
62. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-277Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Garcia Brass Fixtures is planning on replacing one of its machines in five years by making a one-time deposit of $20,000 today and four yearly contributions of $5,000 beginning at the end of year 1. The deposits will earn 10% interest. How much money will Garcia have accumulated at the end of five years to replace the machine?
$55,415
Feedback: Future Value = Present Value * FV FactorFuture Value = $20,000 * 1.6105 = $32,2101.6105 is the FV factor on the Future Value table; n = 5; i = 10%
Future Value of an Annuity = Annuity * FV FactorFuture Value of an Annuity = $5,000 * 4.6410 = $23,2054.6410 is the FV factor on the Future Value of an Annuity table; n = 4; i = 10%
Accumulated Funds = $32,210 + $23,205 = $55,415
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.
Topic: Future Value of a Single AmountTopic: Future Value of an Annuity
AppB-278Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
63. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-279Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company borrows money from the bank by promising to make 6 annual year-end payments of $27,000 each. How much is the company able to borrow if the interest rate is 9%?
$121,119
Feedback: Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $27,000 * 4.4859 = $121,1194.4859 is the PV factor on the Present Value of an Annuity table; n = 6; i = 9%
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-280Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
64. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-281Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company borrows money from the bank by promising to make 8 semiannual payments of $9,000 each. How much is the company able to borrow if the interest rate is 10% compounded semiannually?
$58,168.80
Feedback: Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $9,000 * 6.4632 = $58,168.806.4632 is the PV factor on the Present Value of an Annuity table; n = 8; i = 10%/2 = 5%
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-282Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
65. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-283Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
When you reach retirement age, you will have one fund of $100,000 from which you are going to make annual withdrawals of $14,702. The fund will earn 6% per year. For how many years will you be able to draw an even amount of $14,702?
Nine Years
Feedback: Present Value of an Annuity = Annuity * PV Factor$100,000 = $14,702 * PV Factor; PV Factor = 6.80176.8017 is the PV factor on the Present Value of an Annuity table; i = 6%; n = 9
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-284Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
66. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-285Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
City Peewee League borrowed $883,212, and must make annual year-end payments of $120,000 each. If City's interest rate is 6%, how many years will it take to pay off the loan?
Ten Years Feedback: Present Value of an Annuity = Annuity * Interest Factor $883,212 = $120,000 * Interest Factor; Interest Factor = 7.3601 7.3601 is the interest factor on the Present Value of an Annuity table; i = 6%; n = 10
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-286Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
67. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-287Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
Giuliani Co. lends $524,210 to Craig Corporation. The terms of the loan require that Craig make six semiannual period-end payments of $100,000 each. What semiannual interest rate is Craig paying on the loan?
4% semi-annual rate
Feedback: Present Value of an Annuity = Annuity * Interest Factor$524,210 = $100,000 * Interest Factor; Interest Factor = 5.24215.2421 is the interest factor on the Present Value of an Annuity table; n = 6; i = 4%Craig is paying a 4% semi-annual rate or an 8% annual rate of interest
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-288Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
68. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is beginning a savings plan. It will be saving $15,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 10% interest?
$239,055
Feedback: The FV factor on the Future Value of an Annuity table when n = 10 and i = 10% is 15.937.Future Value of an Annuity = Annuity * Interest FactorFuture Value of an Annuity = $15,000 * 15.937 = $239,055
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
AppB-290Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
69. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-291Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is beginning a savings plan to purchase a new building. It will be saving $43,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 9% interest?
$653,299
Feedback: The FV factor on the Future Value of an Annuity table when n = 10 and i = 9% is 15.193.Future Value of an Annuity = Annuity * FV FactorFuture Value of an Annuity = $43,000 * 15.193 = $653,299
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
AppB-292Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
70. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
You are little late planning your retirement, but are looking forward to retiring in 10 years. You expect to save $6,000 a year at an annual rate of 8%. How much will you have accumulated when you retire?
$86,922
Feedback: The FV factor on the Future Value of an Annuity table when n = 10 and i = 8% is 14.487.Future Value of an Annuity = Annuity * FV FactorFuture Value of an Annuity = $6,000 * 14.487 = $86,922
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 2 Medium
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
AppB-294Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
71. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
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McGraw-Hill Education.
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
A company is setting up a sinking fund to pay off $8,654,000 in bonds that are due in 7 years. The fund will earn 7% interest, and the company intends to put away a series of equal year-end amounts for 7 years. What is the amount of the annual deposits that the company must make?
$1,000,000
Feedback: Future Value of an Annuity = Annuity * Interest Factor$8,654,000 = Annuity * 8.654; Annuity = $1,000,0008.654 is the interest factor on the Future Value of an Annuity table; n = 7; i = 7%
AACSB: Analytical Thinking
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: ApplyDifficulty: 3 Hard
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
Fill in the Blank Questions
AppB-296Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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72. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300
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McGraw-Hill Education.
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9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
_____________ is a borrower's payment to the owner of an asset for its use. Interest
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values.Topic: Present and Future Value Concepts
AppB-298Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
73. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-299Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The interest rate is also called the __________________ rate. Discount
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: UnderstandDifficulty: 2 Medium
Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values.Topic: Present and Future Value Concepts
AppB-300Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
74. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-301Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
To calculate present value of an amount, two factors are required: The __________________ and the ___________________. Interest rate (i); Number of time periods (n)
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount
AppB-302Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
75. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-303Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
An _____________ is a series of equal payments occurring at equal intervals. Annuity
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity
AppB-304Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
76. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220
Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731
10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058
Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282
10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502
Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%
3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089
AppB-305Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil
8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776
10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549
The future value of an ________________ annuity is the accumulated value of each annuity payment with interest as of the date of the final payment. Ordinary
AACSB: Communication
AICPA: BB IndustryAICPA: FN Decision Making
Blooms: RememberDifficulty: 1 Easy
Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity
AppB-306Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.