For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the present value factor. (1) In Table 3 (present value of 1): Number of Discounts Annual Rate Years Involved per Year Case A 9% 7 Case B 10% 8 Annually Semiannually Case C 8% 8 Semiannually Case A Case B Case C (a) (b) % periods % periods % periods (2) In Table 4 (present value of an annuity of 1): Annual Rate Number of Years Involved Number of Payments Involved Frequency of Payments Case A 8% 15 15 Annually Case B 8% 4 4 Annually Case C 12% 8 16 Semiannually (a) Case A % Case B % (b) periods periods Case C % periods
For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the present value factor. (1) In Table 3 (present value of 1): Number of Discounts Annual Rate Years Involved per Year Case A 9% 7 Case B 10% 8 Annually Semiannually Case C 8% 8 Semiannually Case A Case B Case C (a) (b) % periods % periods % periods (2) In Table 4 (present value of an annuity of 1): Annual Rate Number of Years Involved Number of Payments Involved Frequency of Payments Case A 8% 15 15 Annually Case B 8% 4 4 Annually Case C 12% 8 16 Semiannually (a) Case A % Case B % (b) periods periods Case C % periods
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up
the present value factor.
(1) In Table 3 (present value of 1):
Number of
Discounts
Annual Rate
Years Involved
per Year
Case A
9%
7
Case B
10%
8
Annually
Semiannually
Case C
8%
8
Semiannually
Case A
Case B
Case C
(a)
(b)
%
periods
%
periods
%
periods
(2) In Table 4 (present value of an annuity of 1):
Annual Rate
Number of
Years Involved
Number of
Payments Involved
Frequency of
Payments
Case A
8%
15
15
Annually
Case B
8%
4
4
Annually
Case C
12%
8
16
Semiannually
(a)
Case A
%
Case B
%
(b)
periods
periods
Case C
%
periods
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