What is the present value of an ordinary annuity with annual payments of $640 at 8% annual interest for 25 years?(The present value of an ordinary annuity)please review the attached. Note the 8% column is highlighted straight down in both attachments. Present Value of a $1.00 Ordinary AnnuityRate per periodPeriods 2%3%4%5%6%7%8%9%10%10.980 0.971 0.9620.952 0.943 0.935 0.926 0.917 0.9091.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.7362.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.4873.808 3.717 3.630 3.546 3.465 3.240 3.1703.890 3.79134.3.387 33124.713 4.580 4.452 4.329 4.212 4.100 39935.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.3555.6.472 6.230 6.002 5.786 5.582 5.389 5 206 5.033 4.8687.325 7.020 6.733 6.463 6.210 59715747 5.535 5 3357.8.6.8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759108.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.1459.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.49510.575 9.954 9.385 8.863 8.384 7.943 7,536 7.161 6.814111211.348 10.635 9986 9.394 8.853 8.358 7904 7.487 7.1037 367131412 106 1109A 10 AAR G 2009205 87A5 8244 7786PrintDone 4.713 4.580 4.452 4.329 4.212 4.100 3 993 3.890 3.7915.6015.417 5.242 5.076 4.917 4.767 4.623 4.486 4.3556.6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.8687.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.3358.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.7598.6.108.983 8.5309.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.4958.111 7.722 7.360 7.024 6.710 6.418 6.14511121310.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.81411.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.1031412.106 11.296 10,563 9.899 9.295 8.745 8.244 7.786 7.3671512.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.6061613.578 12.561 11.652 10.838 10.106 9.447 8851 8.313 7.8241714.292 13.166 12.166 11.274 10.477 9.763 9 122 8 544 8.0221814.992 13.754 12.659 11.690 10 828 10.059 9.372 8 756 8.2011915.678 14.324 13.134 12.085 11.158 10336 9.604 8.950 8.3652016.351 14.877 13.590 12.462 11.470 10 594 9.818 9.129 8.5142519.523 17.413 15.622 14.094 12.783 11.654 10 675 9.823 9.0773022.306 1GA00 17 202 15 372 13 76610 A00 1 268.10.274 0 127

Generally interest and cash flows are discounted to present value and they decide whether it is feasible or not feasible. Some times they decide whether to accept the project or not depends on the discounted cash flows.Since interest per annum is same for 25 years we can use present value annuity factor. If interest per annum is different for 25 years we use present value factors =$640*( PVAF 8%, 25 years) =$640*10.675 =6832 Hint: you can do calculations without the help of table , by using calculator. if Interest rate is 8% than simply do 1/1.08 and press=25times u will get 10.675

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Accounting

What is the present value of an ordinary annuity with annual payments of $640 at 8% annual interest for 25 years?(The present value of an ordinary annuity) please review the attached. Note the 8% column is highlighted straight down in both attachments.

What is the present value of an ordinary annuity with annual payments of $640 at 8% annual interest for 25 years?(The present value of an ordinary annuity) please review the attached. Note the 8% column is highlighted straight down in both attachments.

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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Question

100%

What is the present value of an ordinary annuity with annual payments of $640 at 8% annual interest for 25 years?(The present value of an ordinary annuity)
please review the attached. Note the 8% column is highlighted straight down in both attachments.

Present Value of a $1.00 Ordinary Annuity
Rate per period
Periods 2%
3%
4%
5%
6%
7%
8%
9%
10%
1
0.980 0.971 0.962
0.952 0.943 0.935 0.926 0.917 0.909
1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736
2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487
3.808 3.717 3.630 3.546 3.465 3.240 3.170
3.890 3.791
3
4.
3.387 3312
4.713 4.580 4.452 4.329 4.212 4.100 3993
5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355
5.
6.472 6.230 6.002 5.786 5.582 5.389 5 206 5.033 4.868
7.325 7.020 6.733 6.463 6.210 59715747 5.535 5 335
7.
8.
6.
8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759
10
8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145
9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495
10.575 9.954 9.385 8.863 8.384 7.943 7,536 7.161 6.814
11
12
11.348 10.635 9986 9.394 8.853 8.358 7904 7.487 7.103
7 367
13
14
12 106 1109A 10 AAR G 200
9205 87A5 8244 7786
Print
Done

4.713 4.580 4.452 4.329 4.212 4.100 3 993 3.890 3.791
5.601
5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355
6.
6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868
7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335
8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759
8.
6.
10
8.983 8.530
9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495
8.111 7.722 7.360 7.024 6.710 6.418 6.145
11
12
13
10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814
11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103
14
12.106 11.296 10,563 9.899 9.295 8.745 8.244 7.786 7.367
15
12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606
16
13.578 12.561 11.652 10.838 10.106 9.447 8851 8.313 7.824
17
14.292 13.166 12.166 11.274 10.477 9.763 9 122 8 544 8.022
18
14.992 13.754 12.659 11.690 10 828 10.059 9.372 8 756 8.201
19
15.678 14.324 13.134 12.085 11.158 10336 9.604 8.950 8.365
20
16.351 14.877 13.590 12.462 11.470 10 594 9.818 9.129 8.514
25
19.523 17.413 15.622 14.094 12.783 11.654 10 675 9.823 9.077
30
22.306 1GA00 17 202 15 372 13 76610 A00 1 268.10.274 0 127

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