Calculate the present value of each of the following annulty amounts based on the reasonable Interest rate that is specified and the number of time periods. Use the table below to calculate the cash payments that create an annuity dus, if you assume that the first payment la made immediately, based on Payment per Period of $30,000 Annual Interest Rate of 5% for 8 years
Calculate the present value of each of the following annulty amounts based on the reasonable Interest rate that is specified and the number of time periods. Use the table below to calculate the cash payments that create an annuity dus, if you assume that the first payment la made immediately, based on Payment per Period of $30,000 Annual Interest Rate of 5% for 8 years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Calculate the present value of each of the following annulty amounts based on the reasonable Interest rate that is specified and the number of time periods. Use the table below to calculate the cash payments that create an annulty due, if you assume that the first payment la made Immediately, based on
Payment per Period of $30,000; Annual Interest Rate of 5% for 8 years
(annulty in advance
Perloda 4%
1
2
3
5
Present Value of Annulty Due
6
7
8
7%
8%
5%
www.
.......
1.00000 1,00000 1.00000 1.00000 1.00000
beginning of payment period)
….......
1.96154 1.95238 1.94340 1.93458 1.92593
2.88609 2.85941 2.83339 2.80802 2.78826
3.77509 3.72325 3.67301 3.62432 3.57710
4.62990 4.54805 4.46511 4.38721 4.31213
5.45182 5.32948 5.21236 5.10020 4.99271
6.24214 6.07869 5.91732 5.76654 5.62288
7.00205 6.78637 6.58238 6.38929 6.20637
7.73274 7.46321 7.20079 6.97130 6.74664
9
10 8.43533 8.10782 7.80169 7.81523 7.24689
Ⓒ $203,891
Ⓒ$212.000
Ⓒ$236,000
Ⓒ$220,300
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