Round your new table factor to five decimal places and your present value to the nearest cent.
Round your new table factor to five decimal places and your present value to the nearest cent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
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 | 38 | 7 | annually | $ |
![Periods
2%
3%
4%
5%
6%
7%
8%
Periods
0.99502
0.99010
0.98522
0.98039
0.97087
0.96154
0.95238
0.94340
0.93458
0.92593
0.99007
0.98030
0.97066
0.96117
0.94260
0.92456
0.90703
0.89000
0.87344
0.85734
2
3
0.98515
0.97059
0.95632
0.94232
0.91514
0.88900
0.86384
0.83962
0.81630
0.79383
3
4
0.98025
0.96098
0.94218
0.92385
0.88849
0.85480
0.82270
0.79209
0.76290
0.73503
4
0.97537
0.95147
0.92826
0.90573
0.86261
0.82193
0.78353
0.74726
0.71299
0.68058
0.97052
0.94205
0.91454
0.88797
0.83748
0.79031
0.74622
0.70496
0.66634
0.63017
6.
7
0.96569
0.93272
0.90103
0.87056
0.81309
0.75992
0.71068
0.66506
0.62275
0.58349
7
8
0.96089
0.92348
0.88771
0.85349
0.78941
0.73069
0.67684
0.62741
0.58201
0.54027
9
095610
0.91434
0.87459
0.83676
0.76642
0.70259
0.64461
0.59190
0.54393
0.50025
10
0.95135
0.90529
0.86167
0.82035
0.74409
0.67556
0.61391
0.55839
0.50835
0.46319
10
11
0.94661
0.89632
0.84893
0.80426
0.72242
0.64958
0.58468
0.52679
0.47509
0.42888
11
12
0.94191
0.88745
0.83639
0.78849
0.70138
0.62460
0.55684
0.49697
0.44401
0.39711
12
13
0.93722
0.87866
0.82403
0.77303
0.68095
0.60057
0.53032
0.46884
0.41496
0.36770
13
14
0.93256
0.86996
0.81185
0.75788
0.66112
0.57748
0.50507
0.44230
0.38782
0.34046
14
15
0.92792
0.86135
0.79985
0.74301
0.64186
0.55526
0.48102
0.41727
0.36245
0.31524
13
0.92330
0.85282
0.78803
0.72845
0.62317
0.53391
0.45811
0.43630
0.39365
0.33873
0.31657
16
0.29189
16
17
0.91871
0.84438
0.77639
0.71416
0.60502
0.51337
0.37136
0.27027
17
18
0.91414
0.83602
0.76491
0.70016
0.58739
0.41552
0.25025
0.49363
0.47464
0.35034
0.29586
18
19
0.90959
0.82774
0.75361
0.68643
0.57029
0.39573
0.33051
0.27651
0.23171
19
20
0.90506
0.81954
0.74247
0.67297
0.55368
0.45639
0.37689
0.31180
0.25842
0.21455
20
21
0.90056
0.81143
0.73150
0.65978
0.53755
0.43883
0.35894
0.29416
0.24151
0.19866
21
22
0.89608
0.80340
0.72069
0.64684
0.52189
0.42196
0.34185
0.27751
0.22571
0.18394
22
23
0.89162
0.79544
0.71004
0.63416
0.50669
0.40573
0.32557
0.26180
0.21095
0.17032
23
24
0,88719
0.78757
0.69954
0.62172
0.49193
0.39012
0.31007
0.24698
0.19715
0.15770
24
25
0.88277
0.77977
0.68921
0.60953
0.47761
0.37512
0.29530
0.23300
0.18425
0.14602
25
Periods
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
Periods
0.91743
0.90909
0.90090
0.89286
0.88496
0.87719
0.86957
0.86207
0.85470
0.84746
0.84168
0.82645
0.81162
0.79719
0.78315
0.76947
0.75614
0.74316
0.73051
0.71818
2
0.77218
0.75131
0.73119
0.71178
0.69305
0.67497
0.65752
0.64066
0.62437
0.60863
3
4
0.70843
0.68301
0.65873
0.63552
0.61332
0.59208
0.57175
0.55229
0.53365
0.51579
5
0.64993
0.62092
0.59345
0.56743
0.54276
0.51937
0.49718
0.47611
0.45611
0.43711
0.59627
0.54703
0.45559
0.39964
6
0.56447
0.53464
0.50663
0.48032
0.43233
0.41044
0.38984
0.37043
0.51316
0.48166
0.45235
0.42506
0.37594
0.35383
0.33320
0.31393
8
0.50187
0.46651
0.43393
0.40388
0.37616
0.35056
0.32690
0.30503
0.28478
0.26604
8
9
0.46043
0.42410
0.39092
0.36061
0.33288
0.30751
0.28426
0.26295
0.24340
0.22546
10
0.42241
0.38554
0.35218
0.32197
0.29459
0.26974
0.24718
0.22668
0.20804
0.19106
10
0.38753
0.35049
0.31728
0.28748
0.26070
0.23662
0.21494
0.19542
0.17781
0.16192
0.13722
11
12
0.35553
0.31863
0.28584
0.25668
0.23071
0.20756
0.18691
0.16846
0.15197
12
13
0.32618
0.28966
0.25751
0.22917
0.20416
0.18207
0.16253
0.14523
0.12989
0.11629
13
14
0.29925
0.26333
0.23199
0.20462
0.18068
0.15971
0.14133
0.12520
0.11102
0.09855
14
15
0.27454
0.23939
0.20900
0.18270
0.15989
0.14010
0.12289
0.10793
0.09489
0.08352
15
0.14150
0.12522
0.1 1081
16
0.25187
0.21763
0.18829
0.16312
0.12289
0.10686
0.09304
0.08110
0.07078
16
17
0.23107
0.19784
0.16963
0.14564
0.10780
0.09293
0.08021
0.06932
0.05998
17
18
0.21199
0.17986
0.15282
0.13004
0.09456
0.08081
0.06914
0.05925
0.05083
18
19
0.19449
0.16351
0.13768
0.11611
0.09806
0.08295
0.07027
0.05961
0.05064
0.04308
19
20
0.17843
0.14864
0.12403
0.10367
0.08678
0.07276
0.06110
0.05139
0.04328
0.03651
20
0.13513
0.12285
21
0.16370
0.11174
0.09256
0.07680
0.06383
0.05313
0.04430
0.03699
0.03094
21
22
0.15018
0.10067
0.08264
0.06796
0.05599
0.04620
0.03819
0.03162
0.02622
22
23
0.13778
0.11168
0.09069
0.07379
0.06014
0.04911
0.04017
0.03292
0.02702
0.02222
23
24
0.12640
0.10153
0.08170
0.06588
0.05323
0.04308
0.03493
0.02838
0.02310
0.01883
24
25
0,11597
0.09230
0.07361
0.05882
0.04710
0.03779
0.03038
0.02447
001974
001596
25](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd201cd7c-f0d9-4cde-8ad3-a66bd40ce2a0%2F6345ced9-beb1-4116-b691-1993d4770d13%2F5ho97h6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Periods
2%
3%
4%
5%
6%
7%
8%
Periods
0.99502
0.99010
0.98522
0.98039
0.97087
0.96154
0.95238
0.94340
0.93458
0.92593
0.99007
0.98030
0.97066
0.96117
0.94260
0.92456
0.90703
0.89000
0.87344
0.85734
2
3
0.98515
0.97059
0.95632
0.94232
0.91514
0.88900
0.86384
0.83962
0.81630
0.79383
3
4
0.98025
0.96098
0.94218
0.92385
0.88849
0.85480
0.82270
0.79209
0.76290
0.73503
4
0.97537
0.95147
0.92826
0.90573
0.86261
0.82193
0.78353
0.74726
0.71299
0.68058
0.97052
0.94205
0.91454
0.88797
0.83748
0.79031
0.74622
0.70496
0.66634
0.63017
6.
7
0.96569
0.93272
0.90103
0.87056
0.81309
0.75992
0.71068
0.66506
0.62275
0.58349
7
8
0.96089
0.92348
0.88771
0.85349
0.78941
0.73069
0.67684
0.62741
0.58201
0.54027
9
095610
0.91434
0.87459
0.83676
0.76642
0.70259
0.64461
0.59190
0.54393
0.50025
10
0.95135
0.90529
0.86167
0.82035
0.74409
0.67556
0.61391
0.55839
0.50835
0.46319
10
11
0.94661
0.89632
0.84893
0.80426
0.72242
0.64958
0.58468
0.52679
0.47509
0.42888
11
12
0.94191
0.88745
0.83639
0.78849
0.70138
0.62460
0.55684
0.49697
0.44401
0.39711
12
13
0.93722
0.87866
0.82403
0.77303
0.68095
0.60057
0.53032
0.46884
0.41496
0.36770
13
14
0.93256
0.86996
0.81185
0.75788
0.66112
0.57748
0.50507
0.44230
0.38782
0.34046
14
15
0.92792
0.86135
0.79985
0.74301
0.64186
0.55526
0.48102
0.41727
0.36245
0.31524
13
0.92330
0.85282
0.78803
0.72845
0.62317
0.53391
0.45811
0.43630
0.39365
0.33873
0.31657
16
0.29189
16
17
0.91871
0.84438
0.77639
0.71416
0.60502
0.51337
0.37136
0.27027
17
18
0.91414
0.83602
0.76491
0.70016
0.58739
0.41552
0.25025
0.49363
0.47464
0.35034
0.29586
18
19
0.90959
0.82774
0.75361
0.68643
0.57029
0.39573
0.33051
0.27651
0.23171
19
20
0.90506
0.81954
0.74247
0.67297
0.55368
0.45639
0.37689
0.31180
0.25842
0.21455
20
21
0.90056
0.81143
0.73150
0.65978
0.53755
0.43883
0.35894
0.29416
0.24151
0.19866
21
22
0.89608
0.80340
0.72069
0.64684
0.52189
0.42196
0.34185
0.27751
0.22571
0.18394
22
23
0.89162
0.79544
0.71004
0.63416
0.50669
0.40573
0.32557
0.26180
0.21095
0.17032
23
24
0,88719
0.78757
0.69954
0.62172
0.49193
0.39012
0.31007
0.24698
0.19715
0.15770
24
25
0.88277
0.77977
0.68921
0.60953
0.47761
0.37512
0.29530
0.23300
0.18425
0.14602
25
Periods
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
Periods
0.91743
0.90909
0.90090
0.89286
0.88496
0.87719
0.86957
0.86207
0.85470
0.84746
0.84168
0.82645
0.81162
0.79719
0.78315
0.76947
0.75614
0.74316
0.73051
0.71818
2
0.77218
0.75131
0.73119
0.71178
0.69305
0.67497
0.65752
0.64066
0.62437
0.60863
3
4
0.70843
0.68301
0.65873
0.63552
0.61332
0.59208
0.57175
0.55229
0.53365
0.51579
5
0.64993
0.62092
0.59345
0.56743
0.54276
0.51937
0.49718
0.47611
0.45611
0.43711
0.59627
0.54703
0.45559
0.39964
6
0.56447
0.53464
0.50663
0.48032
0.43233
0.41044
0.38984
0.37043
0.51316
0.48166
0.45235
0.42506
0.37594
0.35383
0.33320
0.31393
8
0.50187
0.46651
0.43393
0.40388
0.37616
0.35056
0.32690
0.30503
0.28478
0.26604
8
9
0.46043
0.42410
0.39092
0.36061
0.33288
0.30751
0.28426
0.26295
0.24340
0.22546
10
0.42241
0.38554
0.35218
0.32197
0.29459
0.26974
0.24718
0.22668
0.20804
0.19106
10
0.38753
0.35049
0.31728
0.28748
0.26070
0.23662
0.21494
0.19542
0.17781
0.16192
0.13722
11
12
0.35553
0.31863
0.28584
0.25668
0.23071
0.20756
0.18691
0.16846
0.15197
12
13
0.32618
0.28966
0.25751
0.22917
0.20416
0.18207
0.16253
0.14523
0.12989
0.11629
13
14
0.29925
0.26333
0.23199
0.20462
0.18068
0.15971
0.14133
0.12520
0.11102
0.09855
14
15
0.27454
0.23939
0.20900
0.18270
0.15989
0.14010
0.12289
0.10793
0.09489
0.08352
15
0.14150
0.12522
0.1 1081
16
0.25187
0.21763
0.18829
0.16312
0.12289
0.10686
0.09304
0.08110
0.07078
16
17
0.23107
0.19784
0.16963
0.14564
0.10780
0.09293
0.08021
0.06932
0.05998
17
18
0.21199
0.17986
0.15282
0.13004
0.09456
0.08081
0.06914
0.05925
0.05083
18
19
0.19449
0.16351
0.13768
0.11611
0.09806
0.08295
0.07027
0.05961
0.05064
0.04308
19
20
0.17843
0.14864
0.12403
0.10367
0.08678
0.07276
0.06110
0.05139
0.04328
0.03651
20
0.13513
0.12285
21
0.16370
0.11174
0.09256
0.07680
0.06383
0.05313
0.04430
0.03699
0.03094
21
22
0.15018
0.10067
0.08264
0.06796
0.05599
0.04620
0.03819
0.03162
0.02622
22
23
0.13778
0.11168
0.09069
0.07379
0.06014
0.04911
0.04017
0.03292
0.02702
0.02222
23
24
0.12640
0.10153
0.08170
0.06588
0.05323
0.04308
0.03493
0.02838
0.02310
0.01883
24
25
0,11597
0.09230
0.07361
0.05882
0.04710
0.03779
0.03038
0.02447
001974
001596
25
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education