Question:
Using table A.4, calculate the present values of the following situations:
1. $10 000 to be paid at the end of each year for 5 years, assuming 10% interest and yearly compounding
2. $5000 to be paid at the end of each 6 months for 5 years, assuming 10% yearly interest and half-yearly compounding
3. $2500 to be paid at the end of each 3 months for 5 years, assuming 8% yearly interest and quarterly compounding.
Data from in Table A.4
Transcribed Image Text:
Periods
12345
67899
10
11
12
13
14
15
16
17
18
19
20
25
30
2%
0.9804
1.9416
2.8839
3.8077
4.7135
5.6014
6.4720
7.3255
8.1622
8.9826
9.7868
10.5753
11.3484
12.1062
12.8493
13.5777
14.2919
14.9920
15.6785
16.3514
19.5235
22.3965
3%
0.9709
1.9135
2.8286
3.7171
4.5797
5.4172
6.2303
7.0197
7.7861
8.5302
9.2526
9.9540
10.6350
11.2961
11.9379
12.5611
13.1661
13.7535
14.3238
14.8775
17.4131
19.6004
4%
0.9615
1.8861
2.7751
3.6299
4.4518
5.2421
6.0021
6.7327
7.4353
8.1109
8.7605
9.3851
9.9856
10.5631
11.1184
11.6523
12.1657
12.6593
13.1339
13.5903
15.6221
17.2920
5%
0.9524
1.8594
2.7232
3.5460
4.3295
5.0757
5.7864
6.4632
7.1078
7.7217
8.3064
8.8633
9.3936
9.8986
10.3797
10.8378
11.2741
11.6896
12.0853
12.4622
14.0939
15.3725
6%
0.9434
1.8334
2.6730
3.4651
4.2124
4.9173
5.5824
6.2098
6.8017
7.3601
7.8869
8.3838
8.8527
9.2950
9.7122
10.1059
10.4773
10.8276
11.1581
11.4699
12.7834
13.7648
8%
0.9259
1.7833
2.5771
3.3121
3.9927
4.6229
5.2064
5.7466
6.2469
6.7101
7.1390
7.5361
7.9038
8.2442
8.5595
10%
0.9091
1.7355
2.4869
3.1699
3.7908
4.3553
4.8684
5.3349
5.7590
6.1446
6.4951
6.8137
7.1034
7.3667
7.6061
8.8514 7.8237
9.1216
8.0216
9.3719
8.2014
9.6036
8.3649
9.8181
8.5136
10.6748 9.0770
11.2578
9.4269
12%
0.8929
1.6901
2.4018
3.0373
2.7982
3.6048 3.2743
4.1114
4.5638
4.9676
5.3282
5.6502
16%
0.8621
1.6052
2.2459
5.9377
6.1944
6.4235
6.6282
6.8109
3.6847
4.0386
4.3436
4.6065
4.8332
5.0286
5.1971
5.3423
5.4675
5.5755
6.9740
5.6685
7.1196
5.7487
7.2497
5.8178
7.3658 5.8775
7.4694
5.9288
7.8431
6.0971
8.0552
6.1772
20%
0.8333
1.5278
2.1065
2.5887
2.9906
3.3255
3.6016
3.8273
4.0310
4.1925
4.3271
4.4392
4.5327
4.6106
4.6755
4.7296
4.7746
4.8122
4.8435
4.8696
4.9476
4.9789