Essay Questions
51.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 $200,000 in 4 years, and will create a fund to insure that the $200,000 will be available. If it can earn a 7% return compounded annually, how much must the company invest in the fund today to equal the $200,000 at the end of 4 years?
$152,580
Feedback: The PV factor on the Present Value of 1 table when n = 4 and i = 7% is 0.7629
Present Value = Future Value * PV Factor
Present Value = $200,000 * 0.7629 = $152,580
52.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?
$112,095
Feedback: 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
53.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
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
Feedback: The PV factor on the Present Value of 1 table when n = 3 and i = 5% is 0.8638
Present Value = Future Value * PV Factor
Present Value = $25,000 * 0.8638 = $21,595
54.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?
$13,896
Feedback: 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
55.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
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% semiannually
The PV factor on the Present Value of 1 table when n = 10 and i = 4% is 0.6756
Present Value = Future Value * PV Factor
Present Value = $45,000 * 0.6756 = $30,402
56.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
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 3.8897
Present Value = Future Value * PV of an Annuity Factor
Present Value = $12,000 * 3.8897 = $46,676
57.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 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 = 0.7307
0.7307 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 = 1.3686
1.3686 is the FV factor on the Future Value table; n = 8; i = 4%
58.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 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 = 0.7118
0.7118 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 = 1.4049
1.3605 is the FV factor on the Future Value table; n = 3; i = 12%
59.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 $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 Factor
Future Value = $50,000 *1.7182 = $85,910
1.7182 is the FV factor on the Future Value table; n = 8; i = 7%
60.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?
$58,204
Feedback: 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