Question

Determine the present value of the following single amounts (FV of $1, PV of $1, FVA of $1, PVA of $1,FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Invested Amount i = n = Future Value 1. $15,500 5% 12 2. $23,000 5% 6 3. $35,000 11% 18 4. $56,000 6% 14

Answer #1

Calculation of Present value:

1)

Future Value = 15500

Interest rate (r) = 5%

Years (n)= 12

Present value = Future value*Present value interest factor(5%,12)

= 15500*0.5568 = 8630.4 i.e. 8631

2)

Future Value = 23000

Interest rate (r) = 5%

Years (n)= 6

Present value = Future value*Present value interest factor(5%,6)

= 23000*0.7462 = 17162.6 i.e. 17163

3)

Future Value = 35000

Interest rate (r) = 11%

Years (n)= 18

Present value = Future value*Present value interest factor(11%,18)

= 35000*0.1528 = 5348

4)

Future Value = 56000

Interest rate (r) = 6%

Years (n)= 14

Present value = Future value*Present value interest factor(6%,14)

= 56000*0.4423 = 24768.8 i.e. 24769

Determine the present value of the following single amounts (FV
of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables provided. Round your
final answers to nearest whole dollar amount.): Future Amount i = n
= Present Value
1. $20,000 7% 10
2. $14,000 8% 12
3. $25,000 12% 20
4. $40,000 10% 8

Determine the present value of the following single amounts (FV
of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided. Round your final answers to nearest
whole dollar amount.):
FV : 20000
i=7%
n=10
present value= ??
FV : 14000
i=8%
n=12
present value= ??
FV : 25000
i=12%
n=20
present value= ??
FV : 40000
i=10%
n=8
present value= ??

Using the appropriate present value table and assuming a 12%
annual interest rate, determine the present value on December 31,
2018, of a five-period annual annuity of $4,400 under each of the
following situations: (FV of $1, PV of $1, FVA of $1, PVA of $1,
FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from
the tables provided.)
1.The first payment is received on December 31,
2019, and interest is compounded annually.
2.The first payment is received on...

On January 1, 2018, Darnell Window and Pane issued $18.7 million
of 10-year, zero-coupon bonds for $7,209,660. (FV of $1, PV of $1,
FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)

Present and future value tables of $1 at 3% are presented
below:
N
FV $1
PV $1
FVA $1
PVA $1
FVAD $1
PVAD $1
1
1.03000
0.97087
1.0000
0.97087
1.0300
1.00000
2
1.06090
0.94260
2.0300
1.91347
2.0909
1.97087
3
1.09273
0.91514
3.0909
2.82861
3.1836
2.91347
4
1.12551
0.88849
4.1836
3.71710
4.3091
3.82861
5
1.15927
0.86261
5.3091
4.57971
5.4684
4.71710
6
1.19405
0.83748
6.4684
5.41719
6.6625
5.57971
7
1.22987
0.81309
7.6625
6.23028
7.8923
6.41719
8
1.26677
0.78941
8.8923
7.01969
9.1591...

QS B-6 Present value of an annuity LO P3
Beene Distributing is considering a project that will return
$230,000 annually at the end of each year for the next ten years.
If Beene demands an annual return of 9% and pays for the project
immediately, how much is it willing to pay for the project? (PV of
$1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate
factor(s) from the tables provided. Round PVA factor to 4...

Brief Exercise 14-4 Determining the price of bonds [LO14-2]
A company issued 8%, 10-year bonds with a face amount of $100
million. The market yield for bonds of similar risk and maturity is
6%. Interest is paid semiannually. At what price did the bonds
sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1) (Use appropriate factor(s) from the tables
provided. Enter your answers in whole
dollars.)

On January 1, 2021, Anne Teak Furniture issued $100,000 of 12%
bonds, dated January 1. Interest is payable semiannually on June 30
and December 31. The bonds mature in 4 years. The annual market
rate for bonds of similar risk and maturity is 14%. What was the
issue price of the bonds? (FV of $1, PV of $1, FVA of $1, PVA of
$1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)
a. $89,460...

Park Co. is considering an investment that requires immediate
payment of $26,945 and provides expected cash inflows of $8,500
annually for four years. Park Co. requires a 7% return on its
investments.
1-a. What is the net present value of this
investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1)
(Use appropriate factor(s) from the tables provided. Round
your present value factor to 4 decimals.)
Cash Flow
Select Chart
Amount
x
PV Factor
=
Present...

A company issued 6%, 15-year bonds with a face amount of $67
million. The market yield for bonds of similar risk and maturity is
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sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1) (Use appropriate factor(s) from the tables
provided. Enter your answers in whole dollars. Round final answers
to the nearest whole dollar.)

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