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Present Value of an Ordinary Annuity of 1 PVF-OAn,i=l-1a-9ni |(n) Periods 2% 2¼% 3% 4% 5% 6% 1 .98039 97561 97087 96154 .95238 94340 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 3 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 4 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 5 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 7 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 8 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 10 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 Present Value of an Annuity Due of PVF-ADn,=1+1-µ+9»-i (n) Periods 2% 2¼% _3% 4% 5% 6% 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 1.98039 1.97561 1.97087 1.96154 1.95238 1.94340 3 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 4 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 5 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 7 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 9. 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 10 9.16224 8.97087 8.78611 8.43533 8.10782 7.80169

Present Value of an Ordinary Annuity of 1 PVF-OAn,i=l-1a-9ni |(n) Periods 2% 2¼% 3% 4% 5% 6% 1 .98039 97561 97087 96154 .95238 94340 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 3 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 4 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 5 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 7 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 8 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 10 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 Present Value of an Annuity Due of PVF-ADn,=1+1-µ+9»-i (n) Periods 2% 2¼% _3% 4% 5% 6% 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 1.98039 1.97561 1.97087 1.96154 1.95238 1.94340 3 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 4 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 5 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 7 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 9. 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 10 9.16224 8.97087 8.78611 8.43533 8.10782 7.80169

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8:19 ull LTE e bbhosted.cuny.edu – Private 3 of 4 Present Value of an Ordinary Annuity of 1 PVF-OAn,i=1-14-)ni (n) Periods 2% 2¼% 3% 4% 5% 6% 1 .98039 .97561 .97087 .96154 95238 94340 2 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 3 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 4 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 5 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 6 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 8 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 9 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 10 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 Present Value of an Annuity Due of 1 PVF-ADn,i=1+1-4-»-ti (n) Periods 2% 2¼% 3% 4% 5% 6% 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.98039 1.97561 1.97087 1.96154 1.95238 1.94340 3 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 4 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 6 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 8 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 9 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 10 9.16224 8.97087 8.78611 8.43533 8.10782 7.80169 Present Value of 1 (Present Value of a Single Sum) PVFN,i=1(1+i)«=(1+i)-n (n) Periods 2% 2¼% 3% 4% 5% 6% 1 .98039 .97561 .97087 .96154 .95238 .94340 2 .96117.95181 .94260 .92456 .90703 .89000 3 .94232 .92860 .91514 .88900 .86384 .83962 .92385 .90595 .88849 .85480 .82270 .79209 .90573 .88385 ,86261 ,82193 ,78353 74726 88797 ,86230 83748.79031.746Z2 .70496
Transcribed Image Text:8:19 ull LTE e bbhosted.cuny.edu – Private 3 of 4 Present Value of an Ordinary Annuity of 1 PVF-OAn,i=1-14-)ni (n) Periods 2% 2¼% 3% 4% 5% 6% 1 .98039 .97561 .97087 .96154 95238 94340 2 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 3 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 4 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 5 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 6 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 8 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 9 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 10 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 Present Value of an Annuity Due of 1 PVF-ADn,i=1+1-4-»-ti (n) Periods 2% 2¼% 3% 4% 5% 6% 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.98039 1.97561 1.97087 1.96154 1.95238 1.94340 3 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 4 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 6 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 8 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 9 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 10 9.16224 8.97087 8.78611 8.43533 8.10782 7.80169 Present Value of 1 (Present Value of a Single Sum) PVFN,i=1(1+i)«=(1+i)-n (n) Periods 2% 2¼% 3% 4% 5% 6% 1 .98039 .97561 .97087 .96154 .95238 .94340 2 .96117.95181 .94260 .92456 .90703 .89000 3 .94232 .92860 .91514 .88900 .86384 .83962 .92385 .90595 .88849 .85480 .82270 .79209 .90573 .88385 ,86261 ,82193 ,78353 74726 88797 ,86230 83748.79031.746Z2 .70496
Problem #2 Calculation of lease payments Zest Company, as lessee, enters into a lease agreement on January 1, 2018, to lease equipment. The following data are relevant to the lease agreement. The term of the noncancellable lease is four years, with no renewal option. The fair value of the equipment on January 1, 2018 is $60,000. The estimated residual value is $0. The equipment reverts back to the lessor at the termination of the lease. The lessor used an implicit rate of 5%. Instructions: -Calculate the required amount of the lease payments (Present Value & Future Value Tables are provided on pages 3 and 4)
Transcribed Image Text:Problem #2 Calculation of lease payments Zest Company, as lessee, enters into a lease agreement on January 1, 2018, to lease equipment. The following data are relevant to the lease agreement. The term of the noncancellable lease is four years, with no renewal option. The fair value of the equipment on January 1, 2018 is $60,000. The estimated residual value is $0. The equipment reverts back to the lessor at the termination of the lease. The lessor used an implicit rate of 5%. Instructions: -Calculate the required amount of the lease payments (Present Value & Future Value Tables are provided on pages 3 and 4)
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