Following is a table for the present value of $1 at compound interest: Year 6% 10% 1 0.943 0.909 0.890 0.826 0.840 0.751 4 0.792 0.683 5 0.747 0.621 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 3 12% 0.893 0.797 0.712 0.636 0.567 12% 0.893
Following is a table for the present value of $1 at compound interest: Year 6% 10% 1 0.943 0.909 0.890 0.826 0.840 0.751 4 0.792 0.683 5 0.747 0.621 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 3 12% 0.893 0.797 0.712 0.636 0.567 12% 0.893
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hh1.
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Transcribed Image Text:Following is a table for the present value of $1 at compound interest:
Year 6%
12%
1 0.943
0.909
0.893
2
0.890
0.826
0.797
3
0.840
0.751 0.712
4
0.792
0.683
0.636
S 0.747 0.621
0.567
Following is a table for the present value of an annuity of $1 at compound interest:
Year 6%
10%
12%
1
0.943
0.909
0.893
2
1.833
1.736
1.690
2.673
2.487
2.402
4
3.465
3.170
3.037
5 4.212
3.791
3.605
Using the tables provided, the present value of $13,712 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%,
3
10%
a 543,467
b. $13,712
$9,365
de $10,800
Transcribed Image Text:Following is a table for the present value of $1 at compound interest:
Year 6%
10%
12%
1
0.943
0.909
0.893
2
0.890
0.826
0.797
3
0.840
0.751
0.712
4
0.792
0.683
0.636
5
0.747
0.621
0.567
Following is a table for the present value of an annuity of $1 at compound interest:
Year 6%
10%
12%
1
0.943
0.909
0.893
2
1.833
1.736
1.690
3
2.673
2.487
2.402
4
3.465
3.170
3.037
5
4.212
3.791
3.605
Using the tables provided, the present value of $6,000 to be received at the end of each of the next 4 years, assuming an earnings rate of 10%, is
a $14,412
b. $19,020
c. $20,790
d $25,272
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