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1. 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. 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 7.23028
9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969
10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611
11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020
12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262
13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400
14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496
15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607
16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794

Today, Thomas deposited $160,000 in a 3-year, 12% CD that compounds quarterly. What is the maturity value of the CD?

A. $174,400.

B. $228,122.

C. $342,182.

D. $308,132.

2. 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 7.23028
9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969
10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611
11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020
12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262
13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400
14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496
15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607
16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794

Jose wants to cash in his winning lottery ticket. He can either receive twelve, $8,000 annual payments starting today, or he can receive a lump-sum payment now based on a 3% annual interest rate. What would be the lump-sum payment?

A. $82,021.

B. $77,911.

C. $80,300.

D. $79,632.

3. Present and future value tables of 1 at 9% are presented below.

PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1
1 0.91743 1.09000 0.91743 1.0900 1.0000
2 0.84168 1.18810 1.75911 2.2781 2.0900
3 0.77218 1.29503 2.53129 3.5731 3.2781
4 0.70843 1.41158 3.23972 4.9847 4.5731
5 0.64993 1.53862 3.88965 6.5233 5.9847
6 0.59627 1.67710 4.48592 8.2004 7.5233

Ajax Company purchased a two-year certificate of deposit for its building fund in the amount of $200,000. How much should the certificate of deposit be worth at the end of two years if interest is compounded at an annual rate of 9%?

A. $350,563.

B. $236,361.

C. $237,620.

D. $351,822.

4. Present and future value tables of 1 at 9% are presented below.

PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1
1 0.91743 1.09000 0.91743 1.0900 1.0000
2 0.84168 1.18810 1.75911 2.2781 2.0900
3 0.77218 1.29503 2.53129 3.5731 3.2781
4 0.70843 1.41158 3.23972 4.9847 4.5731
5 0.64993 1.53862 3.88965 6.5233 5.9847
6 0.59627 1.67710 4.48592 8.2004 7.5233

How much must be invested now at 9% interest to accumulate to $21,000 in four years?

A. $12,255.

B. $14,877.

C. $12,522.

D. $14,610.

5. Present and future value tables of 1 at 9% are presented below.

PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1
1 0.91743 1.09000 0.91743 1.0900 1.0000
2 0.84168 1.18810 1.75911 2.2781 2.0900
3 0.77218 1.29503 2.53129 3.5731 3.2781
4 0.70843 1.41158 3.23972 4.9847 4.5731
5 0.64993 1.53862 3.88965 6.5233 5.9847
6 0.59627 1.67710 4.48592 8.2004 7.5233

Claudine Corporation will deposit $6,100 into a money market sinking fund at the end of each year for the next five years. How much will accumulate by the end of the fifth and final payment if the sinking fund earns 9% interest?

A. $39,792.

B. $36,507.

C. $33,245.

D. $32,696.

6. Present and future value tables of 1 at 11% are presented below.

PV of $1 FV of $1 PVA of $1 FVA of $1
1 0.90090 1.11000 0.90090 1.0000
2 0.81162 1.23210 1.71252 2.1100
3 0.73119 1.36763 2.44371 3.3421
4 0.65873 1.51807 3.10245 4.7097
5 0.59345 1.68506 3.69590 6.2278
6 0.53464 1.87041 4.23054 7.9129

Spielberg Inc. signed a $280,000 noninterest-bearing note due in five years from a production company eager to do business. Comparable borrowings have carried an 11% interest rate. What is the value of this debt at its inception?

A. $249,200.

B. $166,166.

C. $310,800.

D. $280,000.

7. Present and future value tables of 1 at 11% are presented below.

PV of $1 FV of $1 PVA of $1 FVA of $1
1 0.90090 1.11000 0.90090 1.0000
2 0.81162 1.23210 1.71252 2.1100
3 0.73119 1.36763 2.44371 3.3421
4 0.65873 1.51807 3.10245 4.7097
5 0.59345 1.68506 3.69590 6.2278
6 0.53464 1.87041 4.23054 7.9129

On October 1, 2016, Justine Company purchased equipment from Napa Inc. in exchange for a noninterest-bearing note payable in four equal annual payments of $580,000, beginning Oct 1, 2017. Similar borrowings have carried an 11% interest rate. The equipment would be recorded at:

A. $2,320,000.

B. $1,799,421.

C. $2,064,800.

D. $2,143,622.

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