x
Info
x
Warning
x
Danger
 / 
 / 
 / 
31.Present and future value tables of $1 at 3% presented

Question : 31.Present and future value tables of $1 at 3% presented : 1412651

 

 

31.Present and future value tables of $1 at 3% are presented below:
 

NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $1

11.030000.970871.00000.970871.03001.00000

21.060900.942602.03001.913472.09091.97087

31.092730.915143.09092.828613.18362.9134

41.125510.888494.18363.717104.30913.82861

51.159270.862615.30914.579715.46844.71710

61.194050.837486.46845.417196.66255.57971

71.229870.813097.66256.230287.89236.41719

81.266770.789418.89237.019699.15917.23028

91.304770.7664210.15917.7861110.46398.01969

101.343920.7440911.46398.5302011.80788.78611

111.384230.7224212.80789.2526213.19209.53020

121.425760.7013814.19209.9540014.617810.25262

131.468530.6809515.617810.6349616.086310.95400

141.512590.6611217.086311.2960717.598911.63496

151.557970.6418618.598911.9379419.156912.29607

161.604710.6231720.156912.5611020.761612.93794


Micro Brewery borrows $300,000 to be paid off in three years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment?  
 
 

A.$55,379.

 

B.$106,059.

 

C.$30,138.

 

D.$60,276.

$300,000 ÷ 5.41719* = $55,379
*PVA of $1: n = 6; i = 3%

 

 

 

32.Present and future value tables of $1 at 3% are presented below:
 

NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $1

11.030000.970871.00000.970871.03001.00000

21.060900.942602.03001.913472.09091.97087

31.092730.915143.09092.828613.18362.9134

41.125510.888494.18363.717104.30913.82861

51.159270.862615.30914.579715.46844.71710

61.194050.837486.46845.417196.66255.57971

71.229870.813097.66256.230287.89236.41719

81.266770.789418.89237.019699.15917.23028

91.304770.7664210.15917.7861110.46398.01969

101.343920.7440911.46398.5302011.80788.78611

111.384230.7224212.80789.2526213.19209.53020

121.425760.7013814.19209.9540014.617810.25262

131.468530.6809515.617810.6349616.086310.95400

141.512590.6611217.086311.2960717.598911.63496

151.557970.6418618.598911.9379419.156912.29607

161.604710.6231720.156912.5611020.761612.93794



A firm leases equipment under a capital lease (analogous to an installment purchase) that calls for 12 semiannual payments of $39,014.40. The first payment is due at the inception of the lease. The annual rate on the lease is 6%. What is the value of the leased asset at inception of the lease?  
 
 

A.$388,349.

 

B.$400,000.

 

C.$454,128.

 

D.$440,082.

PVAD = $39,014.40 × 10.25262 * = $400,000
*PVAD of $1: n = 12; i = 3%

 

 

 

33.Below are excerpts from time value of money tables for the 8% rate.

123456

11.0001.0000.9261.0801.0800.926

21.9262.0800.8572.2461.1661.783

32.7833.2460.7933.5061.2602.577

43.5774.5060.7354.8671.3603.312



Column 1 is an interest table for the:


 
 

A.Present value of an ordinary annuity of 1.

 

B.Future value of an ordinary annuity of 1.

 

C.Present value of an annuity due of 1.

 

D.Future value of an annuity due of 1.

 

 

 

 

34.Below are excerpts from time value of money tables for the 8% rate.

 

123456

11.0001.0000.9261.0801.0800.926

21.9262.0800.8572.2461.1661.783

32.7833.2460.7933.5061.2602.577

43.5774.5060.7354.8671.3603.312



Column 2 is an interest table for the:


 
 

A.Present value of an ordinary annuity of 1.

 

B.Future value of an ordinary annuity of 1.

 

C.Present value of an annuity due of 1.

 

D.Future value of an annuity due of 1.

 

 

 

 

35.Below are excerpts from time value of money tables for the 8% rate.

 

123456

11.0001.0000.9261.0801.0800.926

21.9262.0800.8572.2461.1661.783

32.7833.2460.7933.5061.2602.577

43.5774.5060.7354.8671.3603.312



Column 3 is an interest table for the:


 
 

A.Present value of 1.

 

B.Future value of 1.

 

C.Present value of an ordinary annuity of 1.

 

D.Present value of an annuity due of 1.

 

 

 

 

36.Below are excerpts from time value of money tables for the 8% rate.

 

123456

11.0001.0000.9261.0801.0800.926

21.9262.0800.8572.2461.1661.783

32.7833.2460.7933.5061.2602.577

43.5774.5060.7354.8671.3603.312



Column 4 is an interest table for the:


 
 

A.Present value of an ordinary annuity of 1.

 

B.Future value of an ordinary annuity of 1.

 

C.Present value of an annuity due of 1.

 

D.Future value of an annuity due of 1.

 

 

 

 

37.Below are excerpts from time value of money tables for the 8% rate.

 

123456

11.0001.0000.9261.0801.0800.926

21.9262.0800.8572.2461.1661.783

32.7833.2460.7933.5061.2602.577

43.5774.5060.7354.8671.3603.312



Column 5 is an interest table for the:


 
 

A.Present value of 1.

 

B.Future value of 1.

 

C.Present value of an ordinary annuity of 1.

 

D.Present value of an annuity due of 1.

 

 

 

 

38.Below are excerpts from time value of money tables for the 8% rate.

 

123456

11.0001.0000.9261.0801.0800.926

21.9262.0800.8572.2461.1661.783

32.7833.2460.7933.5061.2602.577

43.5774.5060.7354.8671.3603.312



Column 6 is an interest table for the:


 
 

A.Present value of an ordinary annuity of 1.

 

B.Future value of an ordinary annuity of 1.

 

C.Present value of an annuity due of 1.

 

D.Future value of an annuity due of 1.

 

 

 

 

39.Reba wishes to know how much would be in her savings account if she deposits a given sum in an account and leaves it there at 6% interest for five years. She should use a table for the: 
 
 

A.Future value of an ordinary annuity of 1.

 

B.Future value of 1.

 

C.Future value of an annuity of 1.

 

D.Present value of an annuity due of 1.

 

 

 

 

40.Present and future value tables of 1 at 9% are presented below.
 

PV of $1FV of  $1PVA of $1FVAD of  $1              FVA of  $1

10.917431.090000.917431.09001.0000

20.841681.188101.759112.27812.0900

30.772181.295032.531293.57313.2781

40.708431.411583.239724.98474.5731

50.649931.538623.889656.52335.9847

60.596271.677104.458928.20047.5233


Ajax Company purchased a five-year certificate of deposit for its building fund in the amount of $220,000. How much should the certificate of deposit be worth at the end of five years if interest is compounded at an annual rate of 9%?  
 
 

A.$855,723.

 

B.$142,985.

 

C.$319,000.

 

D.$338,496.

FV = $220,000 × 1.53862* = $338,496
*FV of $1: n = 5; i = 9%

 

 

 

 

Solution
5 (1 Ratings )

Solved
Accounting 1 Year Ago 24 Views
This Question has Been Answered!
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
150233 Accounting Questions Answered!
Post a Question