1- Can you explain me about how using of these 4 tables?

ILLUSTRATION A.4 Time diagram Another method used to compute the future value of a single amount involves a compound interest table. This table shows the future value of 1 for n periods. Table 1 is such a table. TABLE 1 Future Value of 1 (n) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 1.00000 15% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.04000 1.00000 .00000 1.05000 1.06000 1.07000 1.08000 .09000 1.10000 1.11000 1.12000 1. 15000 1.08160 1.10250 1.12360 1.14490 1.16640 1.18810 1.21000 1.23210 1.25440 1.12486 1.32250 UI A W N 1.15763 1.19102 1.22504 1.25971 1.29503 1.33100 1.36763 1.40493 1.52088 1.16986 1.21551 1.26248 1.31080 1.36049 1.41158 1.46410 1.51807 1.57352 1.74901 1.21665 1.27628 1.33823 1.40255 1.46933 1.53862 1.61051 1.68506 1.76234 2.01136 1.26532 1.34010 1.41852 1.50073 1.58687 1.67710 1.77156 1.87041 1.97382 2.31306 1.31593 1.40710 1.50363 1.60578 1.71382 1.82804 1.94872 2.07616 2.21068 2.66002 0 0 00 VO 1.36857 1.47746 1.59385 1.71819 1.85093 1.99256 2. 14359 2.30454 2.47596 3.05902 1.42331 1.55133 1.68948 1.83846 1.99900 2. 17189 2.35795 2.55803 2.77308 3.51788 1.48024 1.62889 1.79085 1.96715 2. 15892 2.36736 2.59374 2.83942 3. 10585 4.04556 11 1.53945 1.71034 1.89830 2. 10485 2.33164 2.58043 2.85312 3. 15176 3.47855 4.65239 12 1.60103 1.79586 2.01220 2.25219 2.51817 2.81267 3.13843 3.49845 3.89598 5.35025 13 1.66507 1.88565 2.13293 2.40985 2.71962 3.06581 3.45227 3.88328 4.36349 6.15279 14 1.73168 1.97993 2.26090 2.57853 2.93719 3.34173 3.79750 4.31044 4.88711 7.07571 15 1.80094 2.07893 2.39656 2.75903 3.17217 3.64248 4.17725 4.78459 5.47357 8.13706 16 1.87298 2.18287 2.54035 2.95216 3.42594 3.97031 4.59497 5.31089 6.13039 9.35762 17 1.94790 2.29202 2.69277 3. 15882 3.70002 4.32763 5.05447 5.89509 6.86604 10.76126 18 2.02582 2.40662 2.85434 3.37993 3.99602 4.71712 5.55992 6.54355 7.68997 12.37545 19 2.10685 2,52695 3.02560 3.61653 4.31570 5. 14166 6. 11591 7.26334 8.61276 14.23177 20 2.19112 2.65330 3.20714 3.86968 4.66096 5.60441 6.72750 8.06231 9.64629 16.36654 In Table 1, n is the number of compounding periods, the percentages are the periodic interest rates, and the 5-digit decimal numbers in the respective columns are the future value of 1 factors. To use Table 1, you multiply the principal amount by the future value factor for the specified number of periods and interest rate. For example, the future value factor for two periods at 9% is 1. 18810. Multiplying this factor by $1,000 equals $1, 188.10-which is the accumulated balance at the end of year 2 in the Citizens Bank example in Illustration A.2. The $1,295.03 accumulated balance at the end of the third year is calculated from Table 1 by multiplying the future value factor for three periods (1.29503) by the $1,000. The demonstration problem in Illustration A.5 shows how to use Table 1.= 0 and the future value factor is 1.00000. Consequently, the future value of the last $2,000 invested is only $2,000 since it does not accumulate any interest. Calculating the future value of each individual cash flow is required when the periodic payments or receipts are not equal in each period. However, when the periodic payments (receipts) are the same each period, the future value can be computed by using a future value of an annuity of 1 table. Table 2 is such a table. TABLE 2 Future Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 8% 9% 10% 1% 12% 15% 1.00000 1.00000 1.00000 1.0000 1.00000 1.00000 1:00000 1.00000 1.00000 1.00000 2.04000 2.05000 2.06000 2.0700 2.08000 2.09000 2.10000 2.11000 2. 12000 2. 15000 3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.31000 3.34210 3.37440 3.47250 UI AWN 4.24646 4.31013 4.37462 4:4399 4.50611 4.57313 4.64100 4.70973 4.77933 4.99338 5.41632 5.52563 5.63709 5.7507 5.86660 5.98471 6.10510 6.22780 6.35285 6.74238 6.63298 6.80191 6.97532 7.1533 7.33592 7.52334 7.71561 7.91286 8. 11519 8.75374 7.89829 8.14201 8.39384 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 9 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14. 16397 14.77566 16.78584 10 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15,93743 16.72201 17.54874 20.30372 11 13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 12 15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 13 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34.35192 14 18.29191 19.59863 21.01507 22.5505 24.21492 26.01919 27.97498 30.09492 32.39260 40.50471 21.57856 23.27597 25.1290 27.15211 29.36092 31.77248 34.40536 37.27972 47.58041 15 20.02359 23.65749 25.67253 27.8881 30.32428 33.00340 35.94973 39. 18995 42.75328 55.71747 16 21.82453 17 23.69751 25.84037 28.21288 30.8402 33.75023 36.97351 40.54470 44.50084 48.88367 65.07509 41.30134 45.59917 50.39593 55.74972 18 30.90565 33.9990 37.45024 75.83636 25.64541 28.13238 63.43968 88.21181 19 27.67123 30.53900 33.75999 37.3790 41.44626 46.01846 51. 15909 56.93949 36.78559 40.9955 45.76196 51. 16012 57.27500 64.20283 72.05244 102.44358 20 29.77808 33.06595 Table 2 shows the future value of 1 to be received periodically for a given number of payments. It assumes that each payment is made at the end of each period. We can see from Table 2 that the future value of an annuity of 1 factor for three payments at 5% is 3. 15250. The future value factor is the total of the three individual future value factors was shown in Illustration A.7. Multiplying this amount by the annual investment of $2,000 produces a future value of $6,305. The demonstration problem in Illustration A.8 shows how to use Table 2. John and Char Lewis' daughter, Debra, has just started high school. They decide to start a college fund for her and will invest E2,500 in a savings account at the end of each year she is in high school (4 payments total). The account will earn 6% interest compounded annually. How much will be in the college fund at the time Debra graduates from high school?\fILLUSTRATION A.15 Present value of a series of future amounts computation This method of calculation is required when the periodic cash flows are not uniform in each period. However, when the future receipts are the same in each period, an annuity table can be used. As illustr in Table 4, an annuity table shows the present value of 1 to be received periodically for a given number of payments. It assumes that each payment is made at the end of each period. TABLE 4 Present Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 96154 95238 94340 93458 92593 91743 90909 90090 89286 86957 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 A W N 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16986 3. 10245 3.03735 2.85498 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4. 11141 3.78448 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4. 16042 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 10 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 12 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6. 19437 5.42062 13 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 9.89864 5.72448 14 10.56312 9.29498 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 15 11.11839 10.37966 9.71225 9. 10791 8.55948 8.06069 7.60608 7. 19087 6.81086 5.84737 11.65230 10.83777 10. 10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 16 11.27407 10.47726 9.76322 9. 12164 8.54363 8.02155 7.54879 7.11963 6.04716 17 12.16567 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6. 12797 18 12.65930 7.36578 6. 19823 19 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 7.83929 6.25933 20 13.59033 12.46221 11.46992 10.59401 9.81815 9. 12855 8.51356 7.96333 7.46944 Table 4 shows that the present value of an annuity of 1 factor for three payments at 10% is 2.48685. This present value factor is the total of the three individual present value factors, as shown in Illustration A.15. Applying this amount to the annual cash flow of $1,000 produces a present value of $2,486.85. The following demonstration problem (Illustration A.16) illustrates how to use Table 4 Kildare Construction has just signed a finance lease contract for equip- ment that requires rental payments of E6,000 each, to be paid at the end of each of the next 5 years. The appropriate discount rate is 12%. What is the present value of the rental payments-that is, the amount used to finance the leased equipment