FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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Transcribed Image Text:Assume that you must estimate what the future value will be two years from today using the future value of 1 table. (PV of $1, FV of
$1, PVA of $1, and FVA of $1)
Which interest rate column and number-of-periods row do you use when working with the following rates? (Round percentage
answers to 2 decimal places.)
1. 12% annual rate, compounded annually
2. 6% annual rate, compounded semiannually
3. 10% annual rate, compounded quarterly
4. 12% annual rate, compounded monthly
Interest Rate
%
%
%
%
No. of
Periods
Transcribed Image Text:TABLE B.2+
Future Value of 1
Periods 1%
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
25
30
35
40
2%
3%
4%
5%
6%
Rate
7%
8%
9%
1.0000
1.0000
1.0000
1.0700
1.0800
1.0900
1.1449 1.1664 1.1881
1.2597 1.2950
1.4116
1.5386
1.6771
1.3108 1.3605
1.4026 1.4693
1.5007
1.5869
10%
1.0000
1.0000 1.0000 1.0000 1.0000 1.0000
1.0100 1.0200 1.0300 1.0400 1.0500 1.0600
1.0201 1.0404 1.0609 1.0816 1.1025 1.1236
1.0303 1.0612 1.0927 1.1249 1.1576 1.1910 1.2250
1.0406 1.0824 1.1255 1.1699 1.2155 1.2625
1.0510 1.1041 1.1593 1.2167 1.2763 1.3382
1.4185
1.0615 1.1262 1.1941
1.2653 1.3401
1.5036
1.6058
1.7138 1.8280
1.5938
1.7182
1.8509 1.9926
1.9990 2.1719
2.1589 2.3674
2.3316 2.5804
2.5182 2.8127
2.4098
2.7196 3.0658
2.5785
2.9372
3.3417
2.7590
3.1722
1.0721 1.1487 1.2299 1.3159 1.4071
1.0829 1.1717 1.2668 1.3686 1.4775
1.0937 1.1951 1.3048 1.4233 1.5513 1.6895 1.8385
1.1046 1.2190 1.3439 1.4802 1.6289 1.7908 1.9672
1.1157 1.2434 1.3842 1.5395 1.7103 1.8983 2.1049
1.1268 1.2682 1.4258 1.6010 1.7959 2.0122 2.2522
1.1381 1.2936 1.4685 1.6651 1.8856 2.1329
1.1495 1.3195 1.5126 1.7317 1.9799 2.2609
1.1610 1.3459 1.5580 1.8009 2.0789 2.3966
1.6047 1.8730 2.1829 2.5404 2.9522
1.4002 1.6528 1.9479 2.2920 2.6928 3.1588 3.7000 4.3276
1.1961 1.4282 1.7024 2.0258 2.4066 2.8543 3.3799 3.9960 4.7171
1.2081 1.4568 1.7535 2.1068 2.5270 3.0256 3.6165 4.3157 5.1417
1.2202 1.4859 1.8061 2.1911 2.6533 3.2071 3.8697 4.6610 5.6044
1.2824 1.6406 2.0938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231
2.4273 3.2434 4.3219 5.7435 7.6123 10.0627 13.2677
2.8139 3.9461 5.5160 7.6861 10.6766 14.7853 20.4140 28.1024 52.7996
4.8010 7.0400 10.2857 14.9745 21.7245 31.4094 45.2593 93.0510
3.6425
3.4259 3.9703 4.5950
1.1726 1.3728
1.1843
1.3478
1.8114
17.4494 29.9599
1.4166
1.9999
1.4889
2.2080
3.2620
1.0000
1.1000
12%
f= (1 + i)"
2.8531
3.1384
3.4523
1.0000
1.1200
1.2544
1.4049
1.2100
1.3310
1.4641
1.6105
1.7716
1.9487
2.2107
2.1436
2.4760
2.3579 2.7731
2.5937
3.1058
1.5735
1.7623
1.9738
3.4785
3.8960
4.3635
3.7975
4.8871
4.1772 5.4736
6.1304
6.8660
5.0545
5.5599 7.6900
6.1159 8.6128
6.7275 9.6463
10.8347 17.0001
15%
1.0000
1.1500
1.3225
1.5209
1.7490
2.0114
2.3131
2.6600
3.0590
3.5179
4.0456
4.6524
5.3503
6.1528
7.0757
8.1371
9.3576
10.7613
12.3755
14.2318
16.3665
32.9190
66.2118
133.1755
267.8635
*Used to compute the future value of a known present amount. For example: What is the accumulated value of $3,000 invested today at 8% compounded quarterly for 5 years? Using
the factors of n = 20 and i = 2% (20 quarterly periods and a quarterly interest rate of 2%), the factor is 1.4859. The accumulated value is $4,457.70 ($3,000 x 1.4859).
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