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Appendix B

Time Value of Money

True / False Questions

AppB-1Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of

McGraw-Hill Education.


1. Present Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%

3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220

Future Value of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%

3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058

Present Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%

3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502

Future Value of an Annuity of 1 Periods 3% 4% 5% 6% 7% 8% 9% 10% 12%

3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Interest is the borrower's payment to the owner of an asset for its use. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

From the perspective of an account holder, a savings account is a liability with interest. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

An interest rate is also called a discount rate. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Present and future value computations enable companies to measure or estimate the interest component of holding assets or liabilities over time. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The number of periods in a present value calculation may only be expressed in years.

True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The present value factor for determining the present value of $6,300 to be received three years from today at 10% interest compounded semiannually is 0.7462. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know the worth of the asset at the future date. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The present value of $2,000 to be received nine years from today at 8% interest compounded annually is $1,000. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Sandra has a savings account that has accumulated to $50,000. She started with $28,225, and earned interest at 10% compounded annually. It took her five years to accumulate the $50,000. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Future value can be found if the interest rate (i), the number of periods (n), and the present value (p) are known. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The number of periods in a future value calculation may only be expressed in years. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The future value of $100 compounded semiannually for 3 years at 12% equals $140.49. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total of $7,210.65 in 5 years. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

An annuity is a series of equal payments occurring at equal intervals. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The present value of an annuity table can be used to determine the value today of a series of payments to be received in the future. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A series of equal payments made or received at the end of each period is an ordinary annuity. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The present value of $5,000 per year for three years at 12% compounded annually is $12,009. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

With deposits of $5,000 at the end of each year, you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%. True False





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The future value of an ordinary annuity is the accumulated value of each annuity payment excluding interest as of the date of the final payment. True False

Multiple Choice Questions





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Interest may be defined as:

A. Time.

B. A borrower's payment to the owner of an asset for its use.

C. The future value of a present amount.

D. Always a liability.

E. Always an asset.





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

If we want to know the value of present-day assets at a future date, we can use:

A. Present value computations.

B. Annuity computations.

C. Interest computations.

D. Future value computations.

E. Earnings computations.





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Which interest rate column would you use from a present value or future value table for 8% interest compounded quarterly?

A. 12%

B. 6%

C. 3%

D. 2%

E. 1%





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is considering investing in a project that is expected to return $350,000 four years from now. How much is the company willing to pay for this investment if the company requires a 12% return?

A. $55,606

B. $137,681

C. $222,425

D. $265,764

E. $350,000





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Jason has a loan that requires a single payment of $4,000 at the end of 3 years. The loan's interest rate is 6%, compounded semiannually. How much did Jason borrow?

A. $3,358.40

B. $4,000.00

C. $3,660.40

D. $4,776.40

E. $3,350.00





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Patricia wants to invest a sum of money today that will yield $10,000 at the end of 6 years. Assuming she can earn an interest rate of 6% compounded annually, how much must she invest today?

A. $7,050

B. $9,400

C. $6,000

D. $8,836

E. $8,306





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today?

A. $50,000.00

B. $47,500.00

C. $45,125.00

D. $38,608.50

E. $100,000.00





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Cody invests $1,800 per year from his summer wages at a 4% annual interest rate. He plans to take a European vacation at the end of 4 years when he graduates from college. How much will he have available to spend on his vacation?

A. $7,787.52

B. $7,488.00

C. $6,912.00

D. $7,200.00

E. $7,643.70





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Jessica received a gift of $7,500 at the time of her high school graduation. She invests it in an account that yields 10% compounded semi-annually. What will the value of Jessica's investment be at the end of 5 years?

A. $8,250.00

B. $11,250.00

C. $12,216.75

D. $9,375.00

E. $10,500.00





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company expects to invest $5,000 today at 12% annual interest and plans to receive $15,529 at the end of the investment period. How many years will elapse before the company accumulates the $15,529?

A. 0.322 years

B. 3.1058 years

C. 5 years

D. 8 years

E. 10 years





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Keisha has $3,500 now and plans on investing it in a fund that will pay her 12% interest compounded quarterly. How much will Keisha have accumulated after 2 years?

A. $4,433.80

B. $4,340.00

C. $4,390.40

D. $3,920.00

E. $3,500.00





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

How long will it take an investment of $25,000 at 6% compounded annually to accumulate to a total of $35,462.50?

A. 4 years

B. 5 years

C. 6 years

D. 2 years

E. 10 years





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

What interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000?

A. 5%

B. 8%

C. 10%

D. 12%

E. 15%





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Russell Company has acquired a building with a loan that requires payments of $20,000 every six months for 5 years. The annual interest rate on the loan is 12%. What is the present value of the building?

A. $72,096

B. $113,004

C. $147,202

D. $86,590

E. $200,000





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Marc Lewis expects an investment of $25,000 to return $6,595 annually. His investment is earning 10% per year. How many annual payments will he receive?

A. Five payments

B. Six payments

C. Four payments

D. Three payments

E. More than six payments





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is considering an investment that will return $22,000 semiannually at the end of each semiannual period for 4 years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment?

A. Not more than $69,738

B. Not more than $139,476

C. Not more than $88,000

D. Not more than $142,190

E. Not more than $176,000





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?

A. $24,838.00

B. $21,668.80

C. $31,049.00

D. $40,000.00

E. $44,800.00





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

What amount can you borrow if you make seven semiannual payments of $4,000 at an 8% annual rate of interest?

A. $28,000.00

B. $25,760.00

C. $31,049.00

D. $24,008.40

E. $35,691.20





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

An individual is planning to set-up an education fund for her daughter. She plans to invest $7,000 annually at the end of each year. She expects to withdraw money from the fund at the end of 9 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 9 years?

A. $87,416

B. $68,040

C. $50,400

D. $126,000

E. $45,360





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

An individual is planning to set-up an education fund for his grandchildren. He plans to invest $10,000 annually at the end of each year. He expects to withdraw money from the fund at the end of 10 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 10 years?

A. $46,320

B. $67,107

C. $100,000

D. $144,870

E. $215,890





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Clara is setting up a retirement fund, and she plans on depositing $5,000 per year in an investment that will pay 7% annual interest. How long will it take her to reach her retirement goal of $69,080?

A. 13.816 years

B. 0.072 years

C. 10 years

D. 20 years

E. 5 years





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The Masterson family is setting up a vacation fund, and they plan on depositing $1,000 per quarter in an investment that will pay 12% annual interest. What amount will they have available for their vacation at the end of 2 years?

A. $8,000.00

B. $8,960.00

C. $8,892.30

D. $8,240.00

E. $8,487.20





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?

A. $141,000

B. $112,095

C. $100,000

D. $45,000

E. $105,000





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Jackson has a loan that requires a $17,000 lump sum payment at the end of four years. The interest rate on the loan is 5%, compounded annually. How much did Jackson borrow today?

A. $16,150

B. $13,600

C. $11,504

D. $13,986

E. $15,343





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?

A. $58,204

B. $47,840

C. $58,075

D. $57,040

E. $62,582

Short Answer Questions





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Define interest.





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Explain the concept of the present value of a single amount.





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Explain the concept of the future value of a single amount.





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Explain the concept of the present value of an annuity.





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Explain the concept of the future value of an annuity.

Essay Questions





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549






3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549






3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Kelsey has a loan that requires a $25,000 lump sum payment at the end of three years. The interest rate on the loan is 5%, compounded annually. How much did Kelsey borrow today?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549






3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Mason Company has acquired a machine from a dealer that requires a payment of $45,000 at the end of five years. This transaction includes interest at 8%, compounded semiannually. What is the value of the machine today?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Protocol Company has acquired equipment from a dealer that requires equal payments of $12,000 at the end of the next five years. This transaction includes interest at 9%, compounded annually. What is the value of the machine today?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is creating a fund today by depositing $65,763. The fund will grow to $90,000 after 8 years. What annual interest rate is the company earning on the fund?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is setting aside $21,354 today, and wishes to have $30,000 at the end of three years for a down payment on a piece of property. What interest rate must the company earn?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company has $50,000 today to invest in a fund that will earn 7%. How much will the fund contain at the end of 8 years?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549






3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Trey has $105,000 now. He has a loan of $175,000 that he must pay at the end of 5 years. He can invest his $105,000 at 10% interest compounded semiannually. Will Trey have enough to pay his loan at the end of the 5 years?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Garcia Brass Fixtures is planning on replacing one of its machines in five years by making a one-time deposit of $20,000 today and four yearly contributions of $5,000 beginning at the end of year 1. The deposits will earn 10% interest. How much money will Garcia have accumulated at the end of five years to replace the machine?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company borrows money from the bank by promising to make 6 annual year-end payments of $27,000 each. How much is the company able to borrow if the interest rate is 9%?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company borrows money from the bank by promising to make 8 semiannual payments of $9,000 each. How much is the company able to borrow if the interest rate is 10% compounded semiannually?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

When you reach retirement age, you will have one fund of $100,000 from which you are going to make annual withdrawals of $14,702. The fund will earn 6% per year. For how many years will you be able to draw an even amount of $14,702?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

City Peewee League borrowed $883,212, and must make annual year-end payments of $120,000 each. If City's interest rate is 6%, how many years will it take to pay off the loan?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Giuliani Co. lends $524,210 to Craig Corporation. The terms of the loan require that Craig make six semiannual period-end payments of $100,000 each. What semiannual interest rate is Craig paying on the loan?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is beginning a savings plan. It will be saving $15,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 10% interest?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is beginning a savings plan to purchase a new building. It will be saving $43,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 9% interest?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

You are little late planning your retirement, but are looking forward to retiring in 10 years. You expect to save $6,000 a year at an annual rate of 8%. How much will you have accumulated when you retire?





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is setting up a sinking fund to pay off $8,654,000 in bonds that are due in 7 years. The fund will earn 7% interest, and the company intends to put away a series of equal year-end amounts for 7 years. What is the amount of the annual deposits that the company must make?

Fill in the Blank Questions





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

_____________ is a borrower's payment to the owner of an asset for its use. ________________________________________





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The interest rate is also called the __________________ rate. ________________________________________





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

To calculate present value of an amount, two factors are required: The __________________ and the ___________________. ________________________________________





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

An _____________ is a series of equal payments occurring at equal intervals. ________________________________________





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The future value of an ________________ annuity is the accumulated value of each annuity payment with interest as of the date of the final payment. ________________________________________




Appendix B Time Value of Money Answer Key

True / False Questions





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Interest is the borrower's payment to the owner of an asset for its use. TRUE

AACSB: Communication

AICPA: BB IndustryAICPA: FN Measurement

Blooms: RememberDifficulty: 1 Easy

Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values.Topic: Present and Future Value Concepts





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

From the perspective of an account holder, a savings account is a liability with interest. FALSE









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

An interest rate is also called a discount rate. TRUE




Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Topic: Present Value of a Single Amount





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Present and future value computations enable companies to measure or estimate the interest component of holding assets or liabilities over time. TRUE



Blooms: UnderstandDifficulty: 2 Medium






3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The number of periods in a present value calculation may only be expressed in years. FALSE









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The present value factor for determining the present value of $6,300 to be received three years from today at 10% interest compounded semiannually is 0.7462. TRUE









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know the worth of the asset at the future date. FALSE









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time. TRUE




Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables.Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.

Topic: Future Value of a Single AmountTopic: Present Value of a Single Amount





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The present value of $2,000 to be received nine years from today at 8% interest compounded annually is $1,000. TRUE

Present Value = Future Value * Interest Factor for 9 years @8%Present Value = $2,000 * 0.5002 = $1,000

AACSB: Analytical Thinking


Blooms: ApplyDifficulty: 2 Medium






3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Sandra has a savings account that has accumulated to $50,000. She started with $28,225, and earned interest at 10% compounded annually. It took her five years to accumulate the $50,000. FALSE

PV Factor = Present Value/Future ValuePV Factor = $28,225/$50,000 = 0.56450.5645 is the present value of 1 factor, 10%, 6 periods

AACSB: Analytical ThinkingAICPA: BB Critical Thinking


Blooms: ApplyDifficulty: 3 Hard






3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Future value can be found if the interest rate (i), the number of periods (n), and the present value (p) are known. TRUE




Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Topic: Future Value of a Single Amount





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The number of periods in a future value calculation may only be expressed in years. FALSE









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The future value of $100 compounded semiannually for 3 years at 12% equals $140.49. FALSE

Future Value = Present Value * Interest FactorFuture Value = $100 * 1.4185 = $141.85









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total of $7,210.65 in 5 years. FALSE

FV Factor = Future Value/Present ValueFV Factor = $7,210.65/$5,300 = 1.36051.3605 is the future value of $1 factor, 8%, 4 periods









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

An annuity is a series of equal payments occurring at equal intervals. TRUE


AICPA: BB IndustryAICPA: FN Decision Making


Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables.Topic: Present Value of an Annuity





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The present value of an annuity table can be used to determine the value today of a series of payments to be received in the future. TRUE









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A series of equal payments made or received at the end of each period is an ordinary annuity. TRUE









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The present value of $5,000 per year for three years at 12% compounded annually is $12,009. TRUE

2.4018 is the PV factor on the Present Value of an Annuity table; n = 3; i = 12%Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $5,000 * 2.4018 = $12,009









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

With deposits of $5,000 at the end of each year, you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%. TRUE

7.7156 is the FV factor on the Future Value of an Annuity table; n = 6; i = 10%Future Value of an Annuity = Annuity * FV FactorFuture Value of an Annuity = $5,000 * 7.7156 = $38,5787.7156 is the interest factor on the Future Value of an Annuity table; n = 6; i = 10%




Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.Topic: Future Value of an Annuity





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The future value of an ordinary annuity is the accumulated value of each annuity payment excluding interest as of the date of the final payment. FALSE





Multiple Choice Questions





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Interest may be defined as:

A. Time.

B. A borrower's payment to the owner of an asset for its use.

C. The future value of a present amount.

D. Always a liability.

E. Always an asset.









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

If we want to know the value of present-day assets at a future date, we can use:

A. Present value computations.

B. Annuity computations.

C. Interest computations.

D. Future value computations.

E. Earnings computations.









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Which interest rate column would you use from a present value or future value table for 8% interest compounded quarterly?

A. 12%

B. 6%

C. 3%

D. 2%

E. 1%

An 8% annual interest rate is divided by 4 to find the quarterly rate.










3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is considering investing in a project that is expected to return $350,000 four years from now. How much is the company willing to pay for this investment if the company requires a 12% return?

A. $55,606

B. $137,681

C. $222,425

D. $265,764

E. $350,000

The PV factor on the Present Value table when n = 4 and i = 12% is 0.6355 Present Value = Future Value * PV Factor Present Value = $350,000 * 0.6355 = $222,425









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Jason has a loan that requires a single payment of $4,000 at the end of 3 years. The loan's interest rate is 6%, compounded semiannually. How much did Jason borrow?

A. $3,358.40

B. $4,000.00

C. $3,660.40

D. $4,776.40

E. $3,350.00

3 years = 6 semiannual periods; 6% annual interest = 3% semiannually The PV factor on the Present Value table when n = 6 and i = 3% is 0.8375 Present Value = Future Value * PV Factor Present Value = $4,000 * 0.8375 = $3,350.00









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Patricia wants to invest a sum of money today that will yield $10,000 at the end of 6 years. Assuming she can earn an interest rate of 6% compounded annually, how much must she invest today?

A. $7,050

B. $9,400

C. $6,000

D. $8,836

E. $8,306

The PV factor on the Present Value table when n = 6 and i = 6% is 0.7050 Present Value = Future Value * PV Factor Present Value = $10,000 * 0.7050 = $7,050.00









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today?

A. $50,000.00

B. $47,500.00

C. $45,125.00

D. $38,608.50

E. $100,000.00

The PV factor on the Present Value of an Annuity table when n = 10 and i = 5% is 7.7217 Present Value = Future Annuity Value * PV Factor Present Value = $5,000 * 7.7217 = $38,608.50









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Cody invests $1,800 per year from his summer wages at a 4% annual interest rate. He plans to take a European vacation at the end of 4 years when he graduates from college. How much will he have available to spend on his vacation?

A. $7,787.52

B. $7,488.00

C. $6,912.00

D. $7,200.00

E. $7,643.70

The FV factor on the Future Value of an Annuity table when n = 4 and i = 4% is 4.2465 Future Value = Annuity Value * FV Factor Future Value = $1,800 * 4.2465 = $7,643.70









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Jessica received a gift of $7,500 at the time of her high school graduation. She invests it in an account that yields 10% compounded semi-annually. What will the value of Jessica's investment be at the end of 5 years? A. $8,250.0

0 B. $11,250.

00 C. $12,216.

75 D. $9,375.0

0 E. $10,500.

00

Five years = 10 semiannual periods and a 10% annual interest rate = 5% semiannually The FV factor on the Future Value of 1 table when n = 10 and i = 5% is 1.6289 Future Value = Present Value * FV Factor Future Value = $7,500 * 1.6289 = $12,216.75









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company expects to invest $5,000 today at 12% annual interest and plans to receive $15,529 at the end of the investment period. How many years will elapse before the company accumulates the $15,529?

A. 0.322 years

B. 3.1058 years

C. 5 years

D. 8 years

E. 10 years

Present Value = Future Value * PV Factor$5,000 = $15,529 * PV FactorPV Factor = 0.32200.3220 is the PV factor on the Present Value table; i = 12%; n = 10

Or, Alternative Solution:Future Value = Present Value * FV Factor$15,529 = $5,000 * FV FactorInterest Factor = 3.1058;

3.1058 is the FV factor on the Future Value table; i = 12%; n = 10










3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Keisha has $3,500 now and plans on investing it in a fund that will pay her 12% interest compounded quarterly. How much will Keisha have accumulated after 2 years?

A. $4,433.80

B. $4,340.00

C. $4,390.40

D. $3,920.00

E. $3,500.00

Two years = 8 quarterly periods and a 12% annual interest rate = 3% quarterlyThe FV factor on the Future Value of 1 table where i = 3% and n = 8 is 1.2668Future Value = Present Value * FV FactorFuture Value = $3,500 * 1.2668 = $4,433.80









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

How long will it take an investment of $25,000 at 6% compounded annually to accumulate to a total of $35,462.50?

A. 4 years

B. 5 years

C. 6 years

D. 2 years

E. 10 years

Present Value = Future Value * PV Factor$25,000 = $35,462.50 * PV Factor; PV Factor = 0.70500.7050 is the interest factor on the Present Value table; i = 6%; n = 6

Alternative Solution: Future Value = Present Value * FV Factor$35,462.50 = $25,000 * FV Factor; FV Factor = 1.41851.4185 is the interest factor on the Future Value table; i = 6%; n = 6










3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

What interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000?

A. 5%

B. 8%

C. 10%

D. 12%

E. 15%

Present Value = Future Value * PV Factor$5,000 = $6,802.50 * PV Factor; PV Factor = 0.73500.7350 is the PV factor on the Present Value table; n = 4; i = 8%

Or, Alternative Solution: Future Value = Present Value * FV Factor$6,802.50 = $5,000 * FV Factor; Interest Factor = 1.36051.3605 is the FV factor on the Future Value table; n = 4; i = 8%










3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Russell Company has acquired a building with a loan that requires payments of $20,000 every six months for 5 years. The annual interest rate on the loan is 12%. What is the present value of the building?

A. $72,096

B. $113,004

C. $147,202

D. $86,590

E. $200,000

The PV factor on the Present Value of an Annuity table when n = 5 and i = 12% is 7.3601.Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $20,000 * 7.3601 = $147,202









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Marc Lewis expects an investment of $25,000 to return $6,595 annually. His investment is earning 10% per year. How many annual payments will he receive?

A. Five payments

B. Six payments

C. Four payments

D. Three payments

E. More than six payments

Present Value of an Annuity = Annuity * PV Factor$25,000 = $6,595 * PV Factor; PV Factor = 0.3.79083.7908 is the PV factor on the Present Value of an Annuity table; i = 10%; n = 5









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is considering an investment that will return $22,000 semiannually at the end of each semiannual period for 4 years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment?

A. Not more than $69,738

B. Not more than $139,476

C. Not more than $88,000

D. Not more than $142,190

E. Not more than $176,000

The PV factor on the Present Value of an Annuity table when n = 8 and i = 5% is 6.4632. Present Value of an Annuity = Annuity * PV Factor Present Value of an Annuity = $22,000 * 6.4632 = $142,190









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?

A. $24,838.00

B. $21,668.80

C. $31,049.00

D. $40,000.00

E. $44,800.00

The PV factor on the Present Value of an Annuity table when n = 6 and i = 3% is 5.4172.Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $4,000 * 5.4172 = $21,668.80









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

What amount can you borrow if you make seven semiannual payments of $4,000 at an 8% annual rate of interest?

A. $28,000.00

B. $25,760.00

C. $31,049.00

D. $24,008.40

E. $35,691.20

An 8% annual interest rate = 4% semiannuallyThe PV factor on the Present Value of an Annuity table when n = 7 and i = 4% is 6.0021.Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $4,000 * 6.0021 = $24,008.40









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

An individual is planning to set-up an education fund for her daughter. She plans to invest $7,000 annually at the end of each year. She expects to withdraw money from the fund at the end of 9 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 9 years? A. $87,41

6 B. $68,04

0 C. $50,40

0 D. $126,00

0 E. $45,36

0

The FV factor on the Future Value of an Annuity table when n = 9 and i = 8% is 12.488. Future Value of an Annuity = Annuity * FV Factor Future Value of an Annuity = $7,000 * 12.488 = $87,416









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

An individual is planning to set-up an education fund for his grandchildren. He plans to invest $10,000 annually at the end of each year. He expects to withdraw money from the fund at the end of 10 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 10 years? A. $46,32

0 B. $67,10

7 C. $100,00

0 D. $144,87

0 E. $215,89

0

The FV factor on the Future Value of an Annuity table when n = 10 and i = 8% is 14.487. Future Value of an Annuity = Annuity * FV Factor Future Value of an Annuity = $10,000 * 14.487 = $144,870









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Clara is setting up a retirement fund, and she plans on depositing $5,000 per year in an investment that will pay 7% annual interest. How long will it take her to reach her retirement goal of $69,080?

A. 13.816 years

B. 0.072 years

C. 10 years

D. 20 years

E. 5 years

Future Value of an Annuity = Annuity * Interest Factor $69,080 = $5,000 * Interest Factor; Interest Factor = 13.816 13.816 is the interest factor on the Future Value of an Annuity table; i = 7%; n = 10









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The Masterson family is setting up a vacation fund, and they plan on depositing $1,000 per quarter in an investment that will pay 12% annual interest. What amount will they have available for their vacation at the end of 2 years? A. $8,000.0

0 B. $8,960.0

0 C. $8,892.3

0 D. $8,240.0

0 E. $8,487.2

0

Two years = 8 semiannual periods and a 12% annual interest rate = 3% semiannuallyThe FV factor on the Future Value of an Annuity table when n = 8; i = 3% is 8.8923Annuity * FV Factor = Future Value of an Annuity$1,000 * 8.8923 = $8,892.30









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549


A. $141,000

B. $112,095

C. $100,000

D. $45,000

E. $105,000

The PV factor on the Present Value of 1 table when n = 5 and i = 6% is 0.7473Present Value = Future Value * PV FactorPresent Value = $150,000 * 0.7473 = $112,095









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549


A. $16,150

B. $13,600

C. $11,504

D. $13,986

E. $15,343

The PV factor on the Present Value of 1 table when n = 4 and i = 5% is 0.8227Present Value = Future Value * PV FactorPresent Value = $17,000 * 0.8227 = $13,986









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549


A. $58,204

B. $47,840

C. $58,075

D. $57,040

E. $62,582

The FV factor on the Future Value of 1 table when n = 6 and i = 4% is 1.2653Future Value = Present Value * FV FactorFuture Value = $46,000 *1.2653 = $58,204





Short Answer Questions





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Define interest.

Interest represents a borrower's payment to an owner of an asset in exchange for its use.









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Explain the concept of the present value of a single amount.

The present value of a single amount is used to find today's value for an amount to be received at a future date. It is equal to the amount that can be invested now at the specified interest rate to yield the future value.









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Explain the concept of the future value of a single amount.

The future value of a single amount is equal to the present amount that would accumulate at a future date at a specified rate of interest.









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Explain the concept of the present value of an annuity.

The present value of an annuity is the amount that can be invested now at the specified interest rate to yield a future series of equal periodic payments.









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Explain the concept of the future value of an annuity.

The future value of an annuity is the amount invested today at a specified rate of interest that would accumulate at the date of the final periodic payment.





Essay Questions





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549


$152,580

Feedback: The PV factor on the Present Value of 1 table when n = 4 and i = 7% is 0.7629Present Value = Future Value * PV FactorPresent Value = $200,000 * 0.7629 = $152,580









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549


$112,095










3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Kelsey has a loan that requires a $25,000 lump sum payment at the end of three years. The interest rate on the loan is 5%, compounded annually. How much did Kelsey borrow today?

$21,595










3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549


$13,896










3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Mason Company has acquired a machine from a dealer that requires a payment of $45,000 at the end of five years. This transaction includes interest at 8%, compounded semiannually. What is the value of the machine today?

$30,402

Feedback: Five years = 10 semiannual periods at an 8% annual interest rate = 4% semiannuallyThe PV factor on the Present Value of 1 table when n = 10 and i = 4% is 0.6756Present Value = Future Value * PV FactorPresent Value = $45,000 * 0.6756 = $30,402









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Protocol Company has acquired equipment from a dealer that requires equal payments of $12,000 at the end of the next five years. This transaction includes interest at 9%, compounded annually. What is the value of the machine today?

$46,676

Feedback: The PV factor on the Present Value of an Annuity table when n = 5 and i = 9% is 3.8897Present Value = Future Value * PV of an Annuity FactorPresent Value = $12,000 * 3.8897 = $46,676









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is creating a fund today by depositing $65,763. The fund will grow to $90,000 after 8 years. What annual interest rate is the company earning on the fund?

4%

Feedback: Present Value = Future Value * PV Factor$65,763 = $90,000 * PV Factor; PV Factor = 0.73070.7307 is the PV factor on the Present Value table; n = 8; i = 4%

Or, Alternative Solution: Future Value = Present Value * FV Factor$90,000 = $65,763 * FV Factor; FV Factor = 1.36861.3686 is the FV factor on the Future Value table; n = 8; i = 4%










3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is setting aside $21,354 today, and wishes to have $30,000 at the end of three years for a down payment on a piece of property. What interest rate must the company earn?

12%

Feedback: Present Value = Future Value * PV Factor$21,354 = $30,000 * PV Factor; PV Factor = 0.71180.7118 is the PV factor on the Present Value table; n = 3; i = 12%

Or, Alternative Solution: Future Value = Present Value * FV Factor$30,000 = $21,354 * FV Factor; FV Factor = 1.40491.3605 is the FV factor on the Future Value table; n = 3; i = 12%










3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company has $50,000 today to invest in a fund that will earn 7%. How much will the fund contain at the end of 8 years?

$85,910

Feedback: Future Value = Present Value * FV FactorFuture Value = $50,000 *1.7182 = $85,9101.7182 is the FV factor on the Future Value table; n = 8; i = 7%









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549


$58,204

Feedback: The FV factor on the Future Value of 1 table when n = 6 and i = 4% is 1.2653Future Value = Present Value * FV FactorFuture Value = $46,000 *1.2653 = $58,204









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Trey has $105,000 now. He has a loan of $175,000 that he must pay at the end of 5 years. He can invest his $105,000 at 10% interest compounded semiannually. Will Trey have enough to pay his loan at the end of the 5 years?

No, Trey will be $3,965.50 short of his goal of $175,000.

Feedback: Future Value = Present Value * Interest FactorFuture Value = $105,000 * 1.6289 = $171,034.501.6289 is the interest factor on the Future Value table; n = 5 * 2 = 10; i = 10/2 = 5%Goal of $175,000 - Future Value of $171,034.50 = Shortage of $3,965.50









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Garcia Brass Fixtures is planning on replacing one of its machines in five years by making a one-time deposit of $20,000 today and four yearly contributions of $5,000 beginning at the end of year 1. The deposits will earn 10% interest. How much money will Garcia have accumulated at the end of five years to replace the machine?

$55,415

Feedback: Future Value = Present Value * FV FactorFuture Value = $20,000 * 1.6105 = $32,2101.6105 is the FV factor on the Future Value table; n = 5; i = 10%

Future Value of an Annuity = Annuity * FV FactorFuture Value of an Annuity = $5,000 * 4.6410 = $23,2054.6410 is the FV factor on the Future Value of an Annuity table; n = 4; i = 10%

Accumulated Funds = $32,210 + $23,205 = $55,415




Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables.Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables.

Topic: Future Value of a Single AmountTopic: Future Value of an Annuity





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company borrows money from the bank by promising to make 6 annual year-end payments of $27,000 each. How much is the company able to borrow if the interest rate is 9%?

$121,119

Feedback: Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $27,000 * 4.4859 = $121,1194.4859 is the PV factor on the Present Value of an Annuity table; n = 6; i = 9%









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company borrows money from the bank by promising to make 8 semiannual payments of $9,000 each. How much is the company able to borrow if the interest rate is 10% compounded semiannually?

$58,168.80

Feedback: Present Value of an Annuity = Annuity * PV FactorPresent Value of an Annuity = $9,000 * 6.4632 = $58,168.806.4632 is the PV factor on the Present Value of an Annuity table; n = 8; i = 10%/2 = 5%









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

When you reach retirement age, you will have one fund of $100,000 from which you are going to make annual withdrawals of $14,702. The fund will earn 6% per year. For how many years will you be able to draw an even amount of $14,702?

Nine Years

Feedback: Present Value of an Annuity = Annuity * PV Factor$100,000 = $14,702 * PV Factor; PV Factor = 6.80176.8017 is the PV factor on the Present Value of an Annuity table; i = 6%; n = 9









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

City Peewee League borrowed $883,212, and must make annual year-end payments of $120,000 each. If City's interest rate is 6%, how many years will it take to pay off the loan?

Ten Years Feedback: Present Value of an Annuity = Annuity * Interest Factor $883,212 = $120,000 * Interest Factor; Interest Factor = 7.3601 7.3601 is the interest factor on the Present Value of an Annuity table; i = 6%; n = 10









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

Giuliani Co. lends $524,210 to Craig Corporation. The terms of the loan require that Craig make six semiannual period-end payments of $100,000 each. What semiannual interest rate is Craig paying on the loan?

4% semi-annual rate

Feedback: Present Value of an Annuity = Annuity * Interest Factor$524,210 = $100,000 * Interest Factor; Interest Factor = 5.24215.2421 is the interest factor on the Present Value of an Annuity table; n = 6; i = 4%Craig is paying a 4% semi-annual rate or an 8% annual rate of interest









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is beginning a savings plan. It will be saving $15,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 10% interest?

$239,055

Feedback: The FV factor on the Future Value of an Annuity table when n = 10 and i = 10% is 15.937.Future Value of an Annuity = Annuity * Interest FactorFuture Value of an Annuity = $15,000 * 15.937 = $239,055









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is beginning a savings plan to purchase a new building. It will be saving $43,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 9% interest?

$653,299

Feedback: The FV factor on the Future Value of an Annuity table when n = 10 and i = 9% is 15.193.Future Value of an Annuity = Annuity * FV FactorFuture Value of an Annuity = $43,000 * 15.193 = $653,299









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

You are little late planning your retirement, but are looking forward to retiring in 10 years. You expect to save $6,000 a year at an annual rate of 8%. How much will you have accumulated when you retire?

$86,922

Feedback: The FV factor on the Future Value of an Annuity table when n = 10 and i = 8% is 14.487.Future Value of an Annuity = Annuity * FV FactorFuture Value of an Annuity = $6,000 * 14.487 = $86,922









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

A company is setting up a sinking fund to pay off $8,654,000 in bonds that are due in 7 years. The fund will earn 7% interest, and the company intends to put away a series of equal year-end amounts for 7 years. What is the amount of the annual deposits that the company must make?

$1,000,000

Feedback: Future Value of an Annuity = Annuity * Interest Factor$8,654,000 = Annuity * 8.654; Annuity = $1,000,0008.654 is the interest factor on the Future Value of an Annuity table; n = 7; i = 7%





Fill in the Blank Questions





3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0898 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.300




9 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.77610 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

_____________ is a borrower's payment to the owner of an asset for its use. Interest









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The interest rate is also called the __________________ rate. Discount









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

To calculate present value of an amount, two factors are required: The __________________ and the ___________________. Interest rate (i); Number of time periods (n)









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

An _____________ is a series of equal payments occurring at equal intervals. Annuity









3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.71184 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.63555 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.56746 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.50667 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.45238 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.40399 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606

10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220


3 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.40494 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.57355 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.76236 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.97387 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.21078 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.47609 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731

10 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058


3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.40184 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.03735 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.60486 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.11147 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.56388 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.96769 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7950 5.3282

10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502


3 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.37444 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.77935 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.35286 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.11527 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.089




8 8.8923 9.2142 9.5491 9.8975 10.260 10.637 11.029 11.436 12.3009 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.580 14.776

10 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549

The future value of an ________________ annuity is the accumulated value of each annuity payment with interest as of the date of the final payment. Ordinary







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