Round your new table factor to five decimal places and your present value to the nearest cent.
Round your new table factor to five decimal places and your present value to the nearest cent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your present value to the nearest cent.
| Compound Amount |
Term of Investment (years) |
Nominal Rate (%) |
Interest Compounded |
New Table Factor |
Present Value |
|---|---|---|---|---|---|
| $36,000 | 38 | 7 | annually | $ |
Transcribed Image Text:Periods
2%
3%
4%
5%
6%
7%
8%
Periods
0.99502
0.99010
0.98522
0.98039
0.97087
0.96154
0.95238
0.94340
0.93458
0.92593
0.99007
0.98030
0.97066
0.96117
0.94260
0.92456
0.90703
0.89000
0.87344
0.85734
2
3
0.98515
0.97059
0.95632
0.94232
0.91514
0.88900
0.86384
0.83962
0.81630
0.79383
3
4
0.98025
0.96098
0.94218
0.92385
0.88849
0.85480
0.82270
0.79209
0.76290
0.73503
4
0.97537
0.95147
0.92826
0.90573
0.86261
0.82193
0.78353
0.74726
0.71299
0.68058
0.97052
0.94205
0.91454
0.88797
0.83748
0.79031
0.74622
0.70496
0.66634
0.63017
6.
7
0.96569
0.93272
0.90103
0.87056
0.81309
0.75992
0.71068
0.66506
0.62275
0.58349
7
8
0.96089
0.92348
0.88771
0.85349
0.78941
0.73069
0.67684
0.62741
0.58201
0.54027
9
095610
0.91434
0.87459
0.83676
0.76642
0.70259
0.64461
0.59190
0.54393
0.50025
10
0.95135
0.90529
0.86167
0.82035
0.74409
0.67556
0.61391
0.55839
0.50835
0.46319
10
11
0.94661
0.89632
0.84893
0.80426
0.72242
0.64958
0.58468
0.52679
0.47509
0.42888
11
12
0.94191
0.88745
0.83639
0.78849
0.70138
0.62460
0.55684
0.49697
0.44401
0.39711
12
13
0.93722
0.87866
0.82403
0.77303
0.68095
0.60057
0.53032
0.46884
0.41496
0.36770
13
14
0.93256
0.86996
0.81185
0.75788
0.66112
0.57748
0.50507
0.44230
0.38782
0.34046
14
15
0.92792
0.86135
0.79985
0.74301
0.64186
0.55526
0.48102
0.41727
0.36245
0.31524
13
0.92330
0.85282
0.78803
0.72845
0.62317
0.53391
0.45811
0.43630
0.39365
0.33873
0.31657
16
0.29189
16
17
0.91871
0.84438
0.77639
0.71416
0.60502
0.51337
0.37136
0.27027
17
18
0.91414
0.83602
0.76491
0.70016
0.58739
0.41552
0.25025
0.49363
0.47464
0.35034
0.29586
18
19
0.90959
0.82774
0.75361
0.68643
0.57029
0.39573
0.33051
0.27651
0.23171
19
20
0.90506
0.81954
0.74247
0.67297
0.55368
0.45639
0.37689
0.31180
0.25842
0.21455
20
21
0.90056
0.81143
0.73150
0.65978
0.53755
0.43883
0.35894
0.29416
0.24151
0.19866
21
22
0.89608
0.80340
0.72069
0.64684
0.52189
0.42196
0.34185
0.27751
0.22571
0.18394
22
23
0.89162
0.79544
0.71004
0.63416
0.50669
0.40573
0.32557
0.26180
0.21095
0.17032
23
24
0,88719
0.78757
0.69954
0.62172
0.49193
0.39012
0.31007
0.24698
0.19715
0.15770
24
25
0.88277
0.77977
0.68921
0.60953
0.47761
0.37512
0.29530
0.23300
0.18425
0.14602
25
Periods
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
Periods
0.91743
0.90909
0.90090
0.89286
0.88496
0.87719
0.86957
0.86207
0.85470
0.84746
0.84168
0.82645
0.81162
0.79719
0.78315
0.76947
0.75614
0.74316
0.73051
0.71818
2
0.77218
0.75131
0.73119
0.71178
0.69305
0.67497
0.65752
0.64066
0.62437
0.60863
3
4
0.70843
0.68301
0.65873
0.63552
0.61332
0.59208
0.57175
0.55229
0.53365
0.51579
5
0.64993
0.62092
0.59345
0.56743
0.54276
0.51937
0.49718
0.47611
0.45611
0.43711
0.59627
0.54703
0.45559
0.39964
6
0.56447
0.53464
0.50663
0.48032
0.43233
0.41044
0.38984
0.37043
0.51316
0.48166
0.45235
0.42506
0.37594
0.35383
0.33320
0.31393
8
0.50187
0.46651
0.43393
0.40388
0.37616
0.35056
0.32690
0.30503
0.28478
0.26604
8
9
0.46043
0.42410
0.39092
0.36061
0.33288
0.30751
0.28426
0.26295
0.24340
0.22546
10
0.42241
0.38554
0.35218
0.32197
0.29459
0.26974
0.24718
0.22668
0.20804
0.19106
10
0.38753
0.35049
0.31728
0.28748
0.26070
0.23662
0.21494
0.19542
0.17781
0.16192
0.13722
11
12
0.35553
0.31863
0.28584
0.25668
0.23071
0.20756
0.18691
0.16846
0.15197
12
13
0.32618
0.28966
0.25751
0.22917
0.20416
0.18207
0.16253
0.14523
0.12989
0.11629
13
14
0.29925
0.26333
0.23199
0.20462
0.18068
0.15971
0.14133
0.12520
0.11102
0.09855
14
15
0.27454
0.23939
0.20900
0.18270
0.15989
0.14010
0.12289
0.10793
0.09489
0.08352
15
0.14150
0.12522
0.1 1081
16
0.25187
0.21763
0.18829
0.16312
0.12289
0.10686
0.09304
0.08110
0.07078
16
17
0.23107
0.19784
0.16963
0.14564
0.10780
0.09293
0.08021
0.06932
0.05998
17
18
0.21199
0.17986
0.15282
0.13004
0.09456
0.08081
0.06914
0.05925
0.05083
18
19
0.19449
0.16351
0.13768
0.11611
0.09806
0.08295
0.07027
0.05961
0.05064
0.04308
19
20
0.17843
0.14864
0.12403
0.10367
0.08678
0.07276
0.06110
0.05139
0.04328
0.03651
20
0.13513
0.12285
21
0.16370
0.11174
0.09256
0.07680
0.06383
0.05313
0.04430
0.03699
0.03094
21
22
0.15018
0.10067
0.08264
0.06796
0.05599
0.04620
0.03819
0.03162
0.02622
22
23
0.13778
0.11168
0.09069
0.07379
0.06014
0.04911
0.04017
0.03292
0.02702
0.02222
23
24
0.12640
0.10153
0.08170
0.06588
0.05323
0.04308
0.03493
0.02838
0.02310
0.01883
24
25
0,11597
0.09230
0.07361
0.05882
0.04710
0.03779
0.03038
0.02447
001974
001596
25
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