41.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
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
42.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
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
Two years = 8 semiannual periods and a 12% annual interest rate = 3% semiannually
The FV factor on the Future Value of an Annuity table when n = 8; i = 3% is 8.8923
Annuity * FV Factor = Future Value of an Annuity
$1,000 * 8.8923 = $8,892.30Thinking
43.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 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
The PV factor on the Present Value of 1 table when n = 5 and i = 6% is 0.7473
Present Value = Future Value * PV Factor
Present Value = $150,000 * 0.7473 = $112,095
44.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
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
The PV factor on the Present Value of 1 table when n = 4 and i = 5% is 0.8227
Present Value = Future Value * PV Factor
Present Value = $17,000 * 0.8227 = $13,986
45.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 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
The FV factor on the Future Value of 1 table when n = 6 and i = 4% is 1.2653
Future Value = Present Value * FV Factor
Future Value = $46,000 *1.2653 = $58,204
Short Answer Questions
46.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
Define interest.
Interest represents a borrower's payment to an owner of an asset in exchange for its use.
47.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
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.
48.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
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.
49.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
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.
50.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
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.