Use the following tables to calculate the present value of a $515,000, 5%, 5-year bond that pays $25,750 ($515,000 × 5%) interest annually, if the market rate of interest is 10%. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458 0.90909 2 0.90703 0.89000 0.87344 0.82645 3 0.86384 0.83962 0.81630 0.75131 4 0.82270 0.79209 0.76290 0.68301 5 0.78353 0.74726 0.71299 0.62092 6 0.74622 0.70496 0.66634 0.56447 7 0.71068 0.66506 0.62275 0.51316 8 0.67684 0.62741 0.58201 0.46651 9 0.64461 0.59190 0.54393 0.42410 10 0.61391 0.55839 0.50835 0.38554 Present Value of Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458 0.90909 2 1.85941 1.83339 1.80802 1.73554 3 2.72325 2.67301 2.62432 3.16987 4 3.54595 3.46511 3.38721 3.16987 5 4.32948 4.21236 4.10020 3.79079 6 5.07569 4.91732 4.76654 4.35526 7 5.78637 5.58238 5.38929 4.86845 8 6.46321 6.20979 5.97130 5.33493 9 7.10782 6.80169 6.51523 5.75902 10 7.72173 7.36009 7.02358 6.14457 Round your intermediate calculations and final answer to the nearest whole dollar.
Use the following tables to calculate the present value of a $515,000, 5%, 5-year bond that pays $25,750 ($515,000 × 5%) interest annually, if the market rate of interest is 10%. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458 0.90909 2 0.90703 0.89000 0.87344 0.82645 3 0.86384 0.83962 0.81630 0.75131 4 0.82270 0.79209 0.76290 0.68301 5 0.78353 0.74726 0.71299 0.62092 6 0.74622 0.70496 0.66634 0.56447 7 0.71068 0.66506 0.62275 0.51316 8 0.67684 0.62741 0.58201 0.46651 9 0.64461 0.59190 0.54393 0.42410 10 0.61391 0.55839 0.50835 0.38554 Present Value of Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458 0.90909 2 1.85941 1.83339 1.80802 1.73554 3 2.72325 2.67301 2.62432 3.16987 4 3.54595 3.46511 3.38721 3.16987 5 4.32948 4.21236 4.10020 3.79079 6 5.07569 4.91732 4.76654 4.35526 7 5.78637 5.58238 5.38929 4.86845 8 6.46321 6.20979 5.97130 5.33493 9 7.10782 6.80169 6.51523 5.75902 10 7.72173 7.36009 7.02358 6.14457 Round your intermediate calculations and final answer to the nearest whole dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Use the following tables to calculate the present value of a $515,000, 5%, 5-year bond that pays $25,750 ($515,000 × 5%) interest annually, if the market rate of interest is 10%.
Present Value of $1 at Compound Interest
| Periods | 5% | 6% | 7% | 10% |
| 1 | 0.95238 |
0.94340 |
0.93458 | 0.90909 |
| 2 | 0.90703 | 0.89000 | 0.87344 | 0.82645 |
| 3 | 0.86384 | 0.83962 | 0.81630 | 0.75131 |
| 4 | 0.82270 | 0.79209 | 0.76290 | 0.68301 |
| 5 | 0.78353 | 0.74726 | 0.71299 | 0.62092 |
| 6 | 0.74622 | 0.70496 | 0.66634 | 0.56447 |
| 7 | 0.71068 | 0.66506 | 0.62275 | 0.51316 |
| 8 | 0.67684 | 0.62741 | 0.58201 | 0.46651 |
| 9 | 0.64461 | 0.59190 | 0.54393 | 0.42410 |
| 10 | 0.61391 | 0.55839 | 0.50835 | 0.38554 |
Present Value of Annuity of $1 at Compound Interest
| Periods | 5% | 6% | 7% | 10% |
| 1 | 0.95238 | 0.94340 | 0.93458 | 0.90909 |
| 2 | 1.85941 | 1.83339 | 1.80802 |
1.73554 |
| 3 | 2.72325 | 2.67301 | 2.62432 | 3.16987 |
| 4 | 3.54595 | 3.46511 | 3.38721 | 3.16987 |
| 5 | 4.32948 | 4.21236 | 4.10020 | 3.79079 |
| 6 | 5.07569 | 4.91732 | 4.76654 | 4.35526 |
| 7 | 5.78637 | 5.58238 | 5.38929 | 4.86845 |
| 8 | 6.46321 | 6.20979 | 5.97130 | 5.33493 |
| 9 | 7.10782 | 6.80169 | 6.51523 | 5.75902 |
| 10 | 7.72173 | 7.36009 | 7.02358 | 6.14457 |
Round your intermediate calculations and final answer to the nearest whole dollar.
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