What is the present value of receiving $2,500 at the end of each year for 5 years, assuming 7% interest compounded annually?  Please ideentify which table you used.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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What is the present value of receiving $2,500 at the end of each year for 5 years, assuming 7% interest compounded annually? 

Please ideentify which table you used.

 

Present Value of Annuity of $1
Periods
1.0%
2.0%
3.0%
3.75%
4.0%
4.25%
5.0%
1
0.99010
0.98039
0.97087
0.96386
0.96154
0.95923
0.95238
2
1.97040
1.94156
1.91347
1.89287
1.88609
1.87936
1.85941
3
2.94099
2.88388
2.82861
2.78831
2.77509
2.76198
2.72325
4
3.90197
3.80773
3.71710
3.65138
3.62990
3.60861
3.54595
4.85343
4.71346
4.57971
4.48326
4.45182
4.42073
4.32948
5.79548
5.60143
5.41719
5.28507
5.24214
5.19974
5.07569
7
6.72819
6.47199
6.23028
6.05790
6.00205
5.94699
5.78637
8
7.65168
7.32548
7.01969
6.80280
6.73274
6.66378
6.46321
9.
8.56602
8.16224
7.78611
7.52077
7.43533
7.35135
7.10782
10
9.47130
8.98259
8.53020
8.21279
8.11090
8.01089
7.72173
Transcribed Image Text:Present Value of Annuity of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 1 0.99010 0.98039 0.97087 0.96386 0.96154 0.95923 0.95238 2 1.97040 1.94156 1.91347 1.89287 1.88609 1.87936 1.85941 3 2.94099 2.88388 2.82861 2.78831 2.77509 2.76198 2.72325 4 3.90197 3.80773 3.71710 3.65138 3.62990 3.60861 3.54595 4.85343 4.71346 4.57971 4.48326 4.45182 4.42073 4.32948 5.79548 5.60143 5.41719 5.28507 5.24214 5.19974 5.07569 7 6.72819 6.47199 6.23028 6.05790 6.00205 5.94699 5.78637 8 7.65168 7.32548 7.01969 6.80280 6.73274 6.66378 6.46321 9. 8.56602 8.16224 7.78611 7.52077 7.43533 7.35135 7.10782 10 9.47130 8.98259 8.53020 8.21279 8.11090 8.01089 7.72173
Present Value of $1
Periods
1.0%
2.0%
3.0%
3.75%
4.0%
4.25%
5.0%
1
0.99010
0.98039
0.97087
0.96386
0.96154
0.95923
0.95238
2
0.98030
0.96117
0.94260
0.92902
0.92456
0.92013
0.90703
0.97059
0.94232
0.91514
0.89544
0.88900
0.88262
0.86384
4
0.96098
0.92385
0.88849
0.86307
0.85480
0.84663
0.82270
0.95147
0.90573
0.86261
0.83188
0.82193
0.81212
0.78353
6.
0.94205
0.88797
0.83748
0.80181
0.79031
0.77901
0.74622
7
0.93272
0.87056
0.81309
0.77283
0.75992
0.74725
0.71068
8
0.92348
0.85349
0.78941
0.74490
0.73069
0.71679
0.67684
9.
0.91434
0.83676
0.76642
0.71797
0.70259
0.68757
0.64461
10
0.90529
0.82035
0.74409
0.69202
0.67556
0.65954
0.61391
Transcribed Image Text:Present Value of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 1 0.99010 0.98039 0.97087 0.96386 0.96154 0.95923 0.95238 2 0.98030 0.96117 0.94260 0.92902 0.92456 0.92013 0.90703 0.97059 0.94232 0.91514 0.89544 0.88900 0.88262 0.86384 4 0.96098 0.92385 0.88849 0.86307 0.85480 0.84663 0.82270 0.95147 0.90573 0.86261 0.83188 0.82193 0.81212 0.78353 6. 0.94205 0.88797 0.83748 0.80181 0.79031 0.77901 0.74622 7 0.93272 0.87056 0.81309 0.77283 0.75992 0.74725 0.71068 8 0.92348 0.85349 0.78941 0.74490 0.73069 0.71679 0.67684 9. 0.91434 0.83676 0.76642 0.71797 0.70259 0.68757 0.64461 10 0.90529 0.82035 0.74409 0.69202 0.67556 0.65954 0.61391
Expert Solution
Step 1

As it is the case of annuity due, thus, the first table will be used @7%, 5 years.

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