31.Present Value of 1 Periods3%4%5%6%7%8%9%10%12% 30.91510.88900.86380.83960.81630.79380.77220.75130.7118 40.88850.85480.82270.79210.76290.73500.70840.68300.6355 ...





31.Present Value of 1



Periods3%4%5%6%7%8%9%10%12%



30.91510.88900.86380.83960.81630.79380.77220.75130.7118



40.88850.85480.82270.79210.76290.73500.70840.68300.6355



50.86260.82190.78350.74730.71300.68060.64990.62090.5674



60.83750.79030.74620.70500.66630.63020.59630.56450.5066



70.81310.75990.71070.66510.62270.58350.54700.51320.4523



80.78940.73070.67680.62740.58200.54030.50190.46650.4039



90.76640.70260.64460.59190.54390.50020.46040.42410.3606



100.74410.67560.61390.55840.50830.46320.42240.38550.3220




Future Value of 1





Periods3%4%5%6%7%8%9%10%12%



31.09271.12491.15761.19101.22501.25971.29501.33101.4049



41.12551.16991.21551.26251.31081.36051.41161.46411.5735



51.15931.21671.27631.33821.40261.46931.53861.61051.7623



61.19411.26531.34011.41851.50071.58691.67711.77161.9738



71.22991.31591.40711.50361.60581.71381.82801.94872.2107



81.26681.36861.47751.59381.71821.85091.99262.14362.4760



91.30481.42331.55131.68951.83851.99902.17192.35792.7731



101.34391.48021.62891.79081.96722.15892.36742.59373.1058




Present Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



32.82862.77512.72322.67302.62432.57712.53132.48692.4018



43.71713.62993.54603.46513.38723.31213.23973.16993.0373



54.57974.45184.32954.21244.10023.99273.88973.79083.6048



65.41725.24215.07574.91734.76654.62294.48594.35534.1114



76.23036.00215.78645.58245.38935.20645.03304.86844.5638



87.01976.73276.46326.20985.97135.74665.53485.33494.9676



97.78617.43537.10786.80176.51526.24695.99525.79505.3282



108.53028.11097.72177.36017.02366.71016.41776.14465.6502




Future Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



33.09093.12163.15253.18363.21493.24643.27813.31003.3744



44.18364.24654.31014.37464.43994.50614.57314.64104.7793



55.30915.41635.52565.63715.75075.86665.98476.10516.3528



66.46846.63306.80196.97537.15337.33597.52337.71568.1152



77.66257.89838.14208.39388.65408.92289.20049.487210.089



88.89239.21429.54919.897510.26010.63711.02911.43612.300



910.15910.58311.02711.49111.97812.48813.02113.58014.776



1011.46412.00612.57813.18113.81614.48715.19315.93717.549




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% quarterly
The FV factor on the Future Value of 1 table where i = 3% and n = 8 is 1.2668
Future Value = Present Value * FV Factor
Future Value = $3,500 * 1.2668 = $4,433.80









32.Present Value of 1



Periods3%4%5%6%7%8%9%10%12%



30.91510.88900.86380.83960.81630.79380.77220.75130.7118



40.88850.85480.82270.79210.76290.73500.70840.68300.6355



50.86260.82190.78350.74730.71300.68060.64990.62090.5674



60.83750.79030.74620.70500.66630.63020.59630.56450.5066



70.81310.75990.71070.66510.62270.58350.54700.51320.4523



80.78940.73070.67680.62740.58200.54030.50190.46650.4039



90.76640.70260.64460.59190.54390.50020.46040.42410.3606



100.74410.67560.61390.55840.50830.46320.42240.38550.3220




Future Value of 1





Periods3%4%5%6%7%8%9%10%12%



31.09271.12491.15761.19101.22501.25971.29501.33101.4049



41.12551.16991.21551.26251.31081.36051.41161.46411.5735



51.15931.21671.27631.33821.40261.46931.53861.61051.7623



61.19411.26531.34011.41851.50071.58691.67711.77161.9738



71.22991.31591.40711.50361.60581.71381.82801.94872.2107



81.26681.36861.47751.59381.71821.85091.99262.14362.4760



91.30481.42331.55131.68951.83851.99902.17192.35792.7731



101.34391.48021.62891.79081.96722.15892.36742.59373.1058




Present Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



32.82862.77512.72322.67302.62432.57712.53132.48692.4018



43.71713.62993.54603.46513.38723.31213.23973.16993.0373



54.57974.45184.32954.21244.10023.99273.88973.79083.6048



65.41725.24215.07574.91734.76654.62294.48594.35534.1114



76.23036.00215.78645.58245.38935.20645.03304.86844.5638



87.01976.73276.46326.20985.97135.74665.53485.33494.9676



97.78617.43537.10786.80176.51526.24695.99525.79505.3282



108.53028.11097.72177.36017.02366.71016.41776.14465.6502




Future Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



33.09093.12163.15253.18363.21493.24643.27813.31003.3744



44.18364.24654.31014.37464.43994.50614.57314.64104.7793



55.30915.41635.52565.63715.75075.86665.98476.10516.3528



66.46846.63306.80196.97537.15337.33597.52337.71568.1152



77.66257.89838.14208.39388.65408.92289.20049.487210.089



88.89239.21429.54919.897510.26010.63711.02911.43612.300



910.15910.58311.02711.49111.97812.48813.02113.58014.776



1011.46412.00612.57813.18113.81614.48715.19315.93717.549




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 = 0.7050
0.7050 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 = 1.4185
1.4185 is the interest factor on the Future Value table; i = 6%; n = 6









33.Present Value of 1



Periods3%4%5%6%7%8%9%10%12%



30.91510.88900.86380.83960.81630.79380.77220.75130.7118



40.88850.85480.82270.79210.76290.73500.70840.68300.6355



50.86260.82190.78350.74730.71300.68060.64990.62090.5674



60.83750.79030.74620.70500.66630.63020.59630.56450.5066



70.81310.75990.71070.66510.62270.58350.54700.51320.4523



80.78940.73070.67680.62740.58200.54030.50190.46650.4039



90.76640.70260.64460.59190.54390.50020.46040.42410.3606



100.74410.67560.61390.55840.50830.46320.42240.38550.3220




Future Value of 1





Periods3%4%5%6%7%8%9%10%12%



31.09271.12491.15761.19101.22501.25971.29501.33101.4049



41.12551.16991.21551.26251.31081.36051.41161.46411.5735



51.15931.21671.27631.33821.40261.46931.53861.61051.7623



61.19411.26531.34011.41851.50071.58691.67711.77161.9738



71.22991.31591.40711.50361.60581.71381.82801.94872.2107



81.26681.36861.47751.59381.71821.85091.99262.14362.4760



91.30481.42331.55131.68951.83851.99902.17192.35792.7731



101.34391.48021.62891.79081.96722.15892.36742.59373.1058




Present Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



32.82862.77512.72322.67302.62432.57712.53132.48692.4018



43.71713.62993.54603.46513.38723.31213.23973.16993.0373



54.57974.45184.32954.21244.10023.99273.88973.79083.6048



65.41725.24215.07574.91734.76654.62294.48594.35534.1114



76.23036.00215.78645.58245.38935.20645.03304.86844.5638



87.01976.73276.46326.20985.97135.74665.53485.33494.9676



97.78617.43537.10786.80176.51526.24695.99525.79505.3282



108.53028.11097.72177.36017.02366.71016.41776.14465.6502




Future Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



33.09093.12163.15253.18363.21493.24643.27813.31003.3744



44.18364.24654.31014.37464.43994.50614.57314.64104.7793



55.30915.41635.52565.63715.75075.86665.98476.10516.3528



66.46846.63306.80196.97537.15337.33597.52337.71568.1152



77.66257.89838.14208.39388.65408.92289.20049.487210.089



88.89239.21429.54919.897510.26010.63711.02911.43612.300



910.15910.58311.02711.49111.97812.48813.02113.58014.776



1011.46412.00612.57813.18113.81614.48715.19315.93717.549




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 = 0.7350
0.7350 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 = 1.3605
1.3605 is the FV factor on the Future Value table; n = 4; i = 8%









34.Present Value of 1



Periods3%4%5%6%7%8%9%10%12%



30.91510.88900.86380.83960.81630.79380.77220.75130.7118



40.88850.85480.82270.79210.76290.73500.70840.68300.6355



50.86260.82190.78350.74730.71300.68060.64990.62090.5674



60.83750.79030.74620.70500.66630.63020.59630.56450.5066



70.81310.75990.71070.66510.62270.58350.54700.51320.4523



80.78940.73070.67680.62740.58200.54030.50190.46650.4039



90.76640.70260.64460.59190.54390.50020.46040.42410.3606



100.74410.67560.61390.55840.50830.46320.42240.38550.3220




Future Value of 1





Periods3%4%5%6%7%8%9%10%12%



31.09271.12491.15761.19101.22501.25971.29501.33101.4049



41.12551.16991.21551.26251.31081.36051.41161.46411.5735



51.15931.21671.27631.33821.40261.46931.53861.61051.7623



61.19411.26531.34011.41851.50071.58691.67711.77161.9738



71.22991.31591.40711.50361.60581.71381.82801.94872.2107



81.26681.36861.47751.59381.71821.85091.99262.14362.4760



91.30481.42331.55131.68951.83851.99902.17192.35792.7731



101.34391.48021.62891.79081.96722.15892.36742.59373.1058




Present Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



32.82862.77512.72322.67302.62432.57712.53132.48692.4018



43.71713.62993.54603.46513.38723.31213.23973.16993.0373



54.57974.45184.32954.21244.10023.99273.88973.79083.6048



65.41725.24215.07574.91734.76654.62294.48594.35534.1114



76.23036.00215.78645.58245.38935.20645.03304.86844.5638



87.01976.73276.46326.20985.97135.74665.53485.33494.9676



97.78617.43537.10786.80176.51526.24695.99525.79505.3282



108.53028.11097.72177.36017.02366.71016.41776.14465.6502




Future Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



33.09093.12163.15253.18363.21493.24643.27813.31003.3744



44.18364.24654.31014.37464.43994.50614.57314.64104.7793



55.30915.41635.52565.63715.75075.86665.98476.10516.3528



66.46846.63306.80196.97537.15337.33597.52337.71568.1152



77.66257.89838.14208.39388.65408.92289.20049.487210.089



88.89239.21429.54919.897510.26010.63711.02911.43612.300



910.15910.58311.02711.49111.97812.48813.02113.58014.776



1011.46412.00612.57813.18113.81614.48715.19315.93717.549




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 Factor
Present Value of an Annuity = $20,000 * 7.3601 = $147,202









35.Present Value of 1



Periods3%4%5%6%7%8%9%10%12%



30.91510.88900.86380.83960.81630.79380.77220.75130.7118



40.88850.85480.82270.79210.76290.73500.70840.68300.6355



50.86260.82190.78350.74730.71300.68060.64990.62090.5674



60.83750.79030.74620.70500.66630.63020.59630.56450.5066



70.81310.75990.71070.66510.62270.58350.54700.51320.4523



80.78940.73070.67680.62740.58200.54030.50190.46650.4039



90.76640.70260.64460.59190.54390.50020.46040.42410.3606



100.74410.67560.61390.55840.50830.46320.42240.38550.3220




Future Value of 1





Periods3%4%5%6%7%8%9%10%12%



31.09271.12491.15761.19101.22501.25971.29501.33101.4049



41.12551.16991.21551.26251.31081.36051.41161.46411.5735



51.15931.21671.27631.33821.40261.46931.53861.61051.7623



61.19411.26531.34011.41851.50071.58691.67711.77161.9738



71.22991.31591.40711.50361.60581.71381.82801.94872.2107



81.26681.36861.47751.59381.71821.85091.99262.14362.4760



91.30481.42331.55131.68951.83851.99902.17192.35792.7731



101.34391.48021.62891.79081.96722.15892.36742.59373.1058




Present Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



32.82862.77512.72322.67302.62432.57712.53132.48692.4018



43.71713.62993.54603.46513.38723.31213.23973.16993.0373



54.57974.45184.32954.21244.10023.99273.88973.79083.6048



65.41725.24215.07574.91734.76654.62294.48594.35534.1114



76.23036.00215.78645.58245.38935.20645.03304.86844.5638



87.01976.73276.46326.20985.97135.74665.53485.33494.9676



97.78617.43537.10786.80176.51526.24695.99525.79505.3282



108.53028.11097.72177.36017.02366.71016.41776.14465.6502




Future Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



33.09093.12163.15253.18363.21493.24643.27813.31003.3744



44.18364.24654.31014.37464.43994.50614.57314.64104.7793



55.30915.41635.52565.63715.75075.86665.98476.10516.3528



66.46846.63306.80196.97537.15337.33597.52337.71568.1152



77.66257.89838.14208.39388.65408.92289.20049.487210.089



88.89239.21429.54919.897510.26010.63711.02911.43612.300



910.15910.58311.02711.49111.97812.48813.02113.58014.776



1011.46412.00612.57813.18113.81614.48715.19315.93717.549




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 = 0.3.7908
3.7908 is the PV factor on the Present Value of an Annuity table; i = 10%; n = 5









36.Present Value of 1



Periods3%4%5%6%7%8%9%10%12%



30.91510.88900.86380.83960.81630.79380.77220.75130.7118



40.88850.85480.82270.79210.76290.73500.70840.68300.6355



50.86260.82190.78350.74730.71300.68060.64990.62090.5674



60.83750.79030.74620.70500.66630.63020.59630.56450.5066



70.81310.75990.71070.66510.62270.58350.54700.51320.4523



80.78940.73070.67680.62740.58200.54030.50190.46650.4039



90.76640.70260.64460.59190.54390.50020.46040.42410.3606



100.74410.67560.61390.55840.50830.46320.42240.38550.3220




Future Value of 1





Periods3%4%5%6%7%8%9%10%12%



31.09271.12491.15761.19101.22501.25971.29501.33101.4049



41.12551.16991.21551.26251.31081.36051.41161.46411.5735



51.15931.21671.27631.33821.40261.46931.53861.61051.7623



61.19411.26531.34011.41851.50071.58691.67711.77161.9738



71.22991.31591.40711.50361.60581.71381.82801.94872.2107



81.26681.36861.47751.59381.71821.85091.99262.14362.4760



91.30481.42331.55131.68951.83851.99902.17192.35792.7731



101.34391.48021.62891.79081.96722.15892.36742.59373.1058




Present Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



32.82862.77512.72322.67302.62432.57712.53132.48692.4018



43.71713.62993.54603.46513.38723.31213.23973.16993.0373



54.57974.45184.32954.21244.10023.99273.88973.79083.6048



65.41725.24215.07574.91734.76654.62294.48594.35534.1114



76.23036.00215.78645.58245.38935.20645.03304.86844.5638



87.01976.73276.46326.20985.97135.74665.53485.33494.9676



97.78617.43537.10786.80176.51526.24695.99525.79505.3282



108.53028.11097.72177.36017.02366.71016.41776.14465.6502




Future Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



33.09093.12163.15253.18363.21493.24643.27813.31003.3744



44.18364.24654.31014.37464.43994.50614.57314.64104.7793



55.30915.41635.52565.63715.75075.86665.98476.10516.3528



66.46846.63306.80196.97537.15337.33597.52337.71568.1152



77.66257.89838.14208.39388.65408.92289.20049.487210.089



88.89239.21429.54919.897510.26010.63711.02911.43612.300



910.15910.58311.02711.49111.97812.48813.02113.58014.776



1011.46412.00612.57813.18113.81614.48715.19315.93717.549




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









37.Present Value of 1



Periods3%4%5%6%7%8%9%10%12%



30.91510.88900.86380.83960.81630.79380.77220.75130.7118



40.88850.85480.82270.79210.76290.73500.70840.68300.6355



50.86260.82190.78350.74730.71300.68060.64990.62090.5674



60.83750.79030.74620.70500.66630.63020.59630.56450.5066



70.81310.75990.71070.66510.62270.58350.54700.51320.4523



80.78940.73070.67680.62740.58200.54030.50190.46650.4039



90.76640.70260.64460.59190.54390.50020.46040.42410.3606



100.74410.67560.61390.55840.50830.46320.42240.38550.3220




Future Value of 1





Periods3%4%5%6%7%8%9%10%12%



31.09271.12491.15761.19101.22501.25971.29501.33101.4049



41.12551.16991.21551.26251.31081.36051.41161.46411.5735



51.15931.21671.27631.33821.40261.46931.53861.61051.7623



61.19411.26531.34011.41851.50071.58691.67711.77161.9738



71.22991.31591.40711.50361.60581.71381.82801.94872.2107



81.26681.36861.47751.59381.71821.85091.99262.14362.4760



91.30481.42331.55131.68951.83851.99902.17192.35792.7731



101.34391.48021.62891.79081.96722.15892.36742.59373.1058




Present Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



32.82862.77512.72322.67302.62432.57712.53132.48692.4018



43.71713.62993.54603.46513.38723.31213.23973.16993.0373



54.57974.45184.32954.21244.10023.99273.88973.79083.6048



65.41725.24215.07574.91734.76654.62294.48594.35534.1114



76.23036.00215.78645.58245.38935.20645.03304.86844.5638



87.01976.73276.46326.20985.97135.74665.53485.33494.9676



97.78617.43537.10786.80176.51526.24695.99525.79505.3282



108.53028.11097.72177.36017.02366.71016.41776.14465.6502




Future Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



33.09093.12163.15253.18363.21493.24643.27813.31003.3744



44.18364.24654.31014.37464.43994.50614.57314.64104.7793



55.30915.41635.52565.63715.75075.86665.98476.10516.3528



66.46846.63306.80196.97537.15337.33597.52337.71568.1152



77.66257.89838.14208.39388.65408.92289.20049.487210.089



88.89239.21429.54919.897510.26010.63711.02911.43612.300



910.15910.58311.02711.49111.97812.48813.02113.58014.776



1011.46412.00612.57813.18113.81614.48715.19315.93717.549




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 Factor
Present Value of an Annuity = $4,000 * 5.4172 = $21,668.80









38.Present Value of 1



Periods3%4%5%6%7%8%9%10%12%



30.91510.88900.86380.83960.81630.79380.77220.75130.7118



40.88850.85480.82270.79210.76290.73500.70840.68300.6355



50.86260.82190.78350.74730.71300.68060.64990.62090.5674



60.83750.79030.74620.70500.66630.63020.59630.56450.5066



70.81310.75990.71070.66510.62270.58350.54700.51320.4523



80.78940.73070.67680.62740.58200.54030.50190.46650.4039



90.76640.70260.64460.59190.54390.50020.46040.42410.3606



100.74410.67560.61390.55840.50830.46320.42240.38550.3220




Future Value of 1





Periods3%4%5%6%7%8%9%10%12%



31.09271.12491.15761.19101.22501.25971.29501.33101.4049



41.12551.16991.21551.26251.31081.36051.41161.46411.5735



51.15931.21671.27631.33821.40261.46931.53861.61051.7623



61.19411.26531.34011.41851.50071.58691.67711.77161.9738



71.22991.31591.40711.50361.60581.71381.82801.94872.2107



81.26681.36861.47751.59381.71821.85091.99262.14362.4760



91.30481.42331.55131.68951.83851.99902.17192.35792.7731



101.34391.48021.62891.79081.96722.15892.36742.59373.1058




Present Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



32.82862.77512.72322.67302.62432.57712.53132.48692.4018



43.71713.62993.54603.46513.38723.31213.23973.16993.0373



54.57974.45184.32954.21244.10023.99273.88973.79083.6048



65.41725.24215.07574.91734.76654.62294.48594.35534.1114



76.23036.00215.78645.58245.38935.20645.03304.86844.5638



87.01976.73276.46326.20985.97135.74665.53485.33494.9676



97.78617.43537.10786.80176.51526.24695.99525.79505.3282



108.53028.11097.72177.36017.02366.71016.41776.14465.6502




Future Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



33.09093.12163.15253.18363.21493.24643.27813.31003.3744



44.18364.24654.31014.37464.43994.50614.57314.64104.7793



55.30915.41635.52565.63715.75075.86665.98476.10516.3528



66.46846.63306.80196.97537.15337.33597.52337.71568.1152



77.66257.89838.14208.39388.65408.92289.20049.487210.089



88.89239.21429.54919.897510.26010.63711.02911.43612.300



910.15910.58311.02711.49111.97812.48813.02113.58014.776



1011.46412.00612.57813.18113.81614.48715.19315.93717.549




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% semiannually
The 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 Factor
Present Value of an Annuity = $4,000 * 6.0021 = $24,008.40









39.Present Value of 1



Periods3%4%5%6%7%8%9%10%12%



30.91510.88900.86380.83960.81630.79380.77220.75130.7118



40.88850.85480.82270.79210.76290.73500.70840.68300.6355



50.86260.82190.78350.74730.71300.68060.64990.62090.5674



60.83750.79030.74620.70500.66630.63020.59630.56450.5066



70.81310.75990.71070.66510.62270.58350.54700.51320.4523



80.78940.73070.67680.62740.58200.54030.50190.46650.4039



90.76640.70260.64460.59190.54390.50020.46040.42410.3606



100.74410.67560.61390.55840.50830.46320.42240.38550.3220




Future Value of 1





Periods3%4%5%6%7%8%9%10%12%



31.09271.12491.15761.19101.22501.25971.29501.33101.4049



41.12551.16991.21551.26251.31081.36051.41161.46411.5735



51.15931.21671.27631.33821.40261.46931.53861.61051.7623



61.19411.26531.34011.41851.50071.58691.67711.77161.9738



71.22991.31591.40711.50361.60581.71381.82801.94872.2107



81.26681.36861.47751.59381.71821.85091.99262.14362.4760



91.30481.42331.55131.68951.83851.99902.17192.35792.7731



101.34391.48021.62891.79081.96722.15892.36742.59373.1058




Present Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



32.82862.77512.72322.67302.62432.57712.53132.48692.4018



43.71713.62993.54603.46513.38723.31213.23973.16993.0373



54.57974.45184.32954.21244.10023.99273.88973.79083.6048



65.41725.24215.07574.91734.76654.62294.48594.35534.1114



76.23036.00215.78645.58245.38935.20645.03304.86844.5638



87.01976.73276.46326.20985.97135.74665.53485.33494.9676



97.78617.43537.10786.80176.51526.24695.99525.79505.3282



108.53028.11097.72177.36017.02366.71016.41776.14465.6502




Future Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



33.09093.12163.15253.18363.21493.24643.27813.31003.3744



44.18364.24654.31014.37464.43994.50614.57314.64104.7793



55.30915.41635.52565.63715.75075.86665.98476.10516.3528



66.46846.63306.80196.97537.15337.33597.52337.71568.1152



77.66257.89838.14208.39388.65408.92289.20049.487210.089



88.89239.21429.54919.897510.26010.63711.02911.43612.300



910.15910.58311.02711.49111.97812.48813.02113.58014.776



1011.46412.00612.57813.18113.81614.48715.19315.93717.549




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



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









40.Present Value of 1



Periods3%4%5%6%7%8%9%10%12%



30.91510.88900.86380.83960.81630.79380.77220.75130.7118



40.88850.85480.82270.79210.76290.73500.70840.68300.6355



50.86260.82190.78350.74730.71300.68060.64990.62090.5674



60.83750.79030.74620.70500.66630.63020.59630.56450.5066



70.81310.75990.71070.66510.62270.58350.54700.51320.4523



80.78940.73070.67680.62740.58200.54030.50190.46650.4039



90.76640.70260.64460.59190.54390.50020.46040.42410.3606



100.74410.67560.61390.55840.50830.46320.42240.38550.3220




Future Value of 1





Periods3%4%5%6%7%8%9%10%12%



31.09271.12491.15761.19101.22501.25971.29501.33101.4049



41.12551.16991.21551.26251.31081.36051.41161.46411.5735



51.15931.21671.27631.33821.40261.46931.53861.61051.7623



61.19411.26531.34011.41851.50071.58691.67711.77161.9738



71.22991.31591.40711.50361.60581.71381.82801.94872.2107



81.26681.36861.47751.59381.71821.85091.99262.14362.4760



91.30481.42331.55131.68951.83851.99902.17192.35792.7731



101.34391.48021.62891.79081.96722.15892.36742.59373.1058




Present Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



32.82862.77512.72322.67302.62432.57712.53132.48692.4018



43.71713.62993.54603.46513.38723.31213.23973.16993.0373



54.57974.45184.32954.21244.10023.99273.88973.79083.6048



65.41725.24215.07574.91734.76654.62294.48594.35534.1114



76.23036.00215.78645.58245.38935.20645.03304.86844.5638



87.01976.73276.46326.20985.97135.74665.53485.33494.9676



97.78617.43537.10786.80176.51526.24695.99525.79505.3282



108.53028.11097.72177.36017.02366.71016.41776.14465.6502




Future Value of an Annuity of 1



Periods3%4%5%6%7%8%9%10%12%



33.09093.12163.15253.18363.21493.24643.27813.31003.3744



44.18364.24654.31014.37464.43994.50614.57314.64104.7793



55.30915.41635.52565.63715.75075.86665.98476.10516.3528



66.46846.63306.80196.97537.15337.33597.52337.71568.1152



77.66257.89838.14208.39388.65408.92289.20049.487210.089



88.89239.21429.54919.897510.26010.63711.02911.43612.300



910.15910.58311.02711.49111.97812.48813.02113.58014.776



1011.46412.00612.57813.18113.81614.48715.19315.93717.549




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



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











May 15, 2022
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