The image includes an excerpt from an educational finance resource detailing how to calculate a new table factor and the present value for an investment. The components are organized in a table format and the text reads as follows:---The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your present value to the nearest cent.| Compound Amount | Term of Investment (years) | Nominal Rate (%) | Interest Compounded | New Table Factor | Present Value ||-----------------|-----------------------------|------------------|----------------------|-----------------|---------------|| $36,000 | 36 | 7 | annually | | $ |At the bottom, a button labeled "Need Help?" is followed by "Read It."---This table provides essential data for calculating the present value of an investment given specific parameters such as compound amount, term, nominal rate, and the frequency of compounding. It prompts the user to perform calculations using provided tables and encourages support if needed.

We need to compute the present value of given compounded amount. Present value = Compounded amount * Table factorComputation of table factor Table factor = ( 1 + interest rate)-No. of years = ( 1 + 7%)-36 = ( 1 + 0.07)-36 = (1.07)-36 = 0.08753545698 or = 0.08754Computation of present value Present value = Compounded amount * Table factor = $36,000 * 0.08754 = $3,151.44

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investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your Term of Nominal Interest New Table Investment (years) Rate (%) Compounded Present Value Factor 36 7 annually

investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your Term of Nominal Interest New Table Investment (years) Rate (%) Compounded Present Value Factor 36 7 annually

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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