12A. On December 31, 2018, when the market interest rate is 10%, Derrick Corporation issues $240,000 of 7%, 12-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance. (Click the icon to view Present Value of $1 table.) 6 (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) 6 (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Start by calculating the present value of the principal. (Enter factor amounts to three decimal places, X.XXX.) Value Factor = PV of principal Now calculate the present value of the stated interest. (Enter factor amounts to three decimal places, X.XXX.) Value X Semiannual interest ratex Factor = PV of stated interest % x = Finally, calculate the present value of bonds payable. PV of principal + PV of stated interest = PV of bonds payable + Present Value of $1 | Periods | 1% | 2% | 3% | 4% | 5% | 6% 7% | 8% 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% 10.9900.980][0.9710.962|0.9520.9430.9350.92610.9170.909|0.8930.877{0.8700.862|0.8470.833 10.9800.9610.9430.9250.9070.8900.8730.8570.8420.826|0.7970.769|0.756|0.743|0.7180.694 10.9710.94210.9150.889|0.864|0.84010.8160.7940.77210.751|0.7120.6750.658|0.64110.609|0.579 10.9610.9240.888|0.8550.8230.7920.763|0.735|0.708|0.6830.636|0.59210.572|0.552|0.5160.482 10.9510.906|0.8630.8220.7840.7470.7130.6810.6500.621|0.567|0.519|0.4970.476|0.4370.402 [0.9420.888|0.8370.79010.7460.7050.6660.630|0.5960.564|0.5070.456|0.432|0.4100.370|0.335 10.9330.8710.8130.760|0.7110.665|0.623|0.5830.547|0.513|0.4520.400|0.3760.3540.31410.279 10.9230.8530.7890.7310.6770.627|0.582|0.540|0.50210.4670.404 0.3510.327|0.3050.2660.233 10.9140.8370.7660.7030.645|0.5920.5440.5000.4600.4240.3610.308|0.284 0.2630.225|0.194 10.9050.8200.7440.6760.6140.558|0.5080.4630.4220.386|0.3220.270|0.2470.227|0.1910.162 1 0.8960.804 0.72210.65010.58510.527 0.47510.42910.38810.3500.28710.23710.215|o.195 0.16210.135 |0.8870.788|0.7010.625|0.5570.4970.4440.3970.356|0.319|0.2570.208|0.1870.168|0.137|0.112 0.87910.77310.6810.601]0.530|0.4690.4150.36810.3260.290| 0.229|0.1820.1630.145|0.116|0.093 |0.8700.7580.6610.577|0.5050.4420.388|0.34010.2990.26310.205|0.1600.1410.125|0.099 0.078 10.8610.74310.642|0.555|0.4810.4170.36210.31510.27510.239|0.1830.1400.123|0.108|0.0840.065 |0.8530.7280.6230.5340.4580.3940.3390.29210.2520.218|0.163|0.123|0.107|0.0930.0710.054 10.8440.7140.605|0.51310.4360.37110.3170.2700.2310.198|0.146|0.1080.0930.0800.0600.045 23456789BHB846BM899a%88%88www 10.83610.700|0.58710.49410.41610.3500.296lo.250lo.21210.180/0.13010.09510.08110.06910.0510.0381 |0.828/0.686lo.570lo.475|o.396lo.33110.27710.23210.19410.164|0.116/0.08310.070/0.06010.043|0.031 0.820/0.67310.5410.45610.377/0.31210.25810.21510.17810.14910.10410.0730.061/0.0510.03710.026 10.8110.66010.53810.43910.35910.29410.24210.1990.1640.1350.0930.064 0.053 0.044 0.031 0.022 10.80310.647|0.5220.42210.34210.278|0.226|0.1840.150|0.123|0.0830.056 0.046|0.038|0.026 0.018 10.795|0.634|0.507 0.40610.32610.26210.2110.170|0.138|0.12]0.074|0.049|0.0400.03310.02210.015 10.788|0.6220.4920.3900.3100.2470.1970.158|0.126|0.1020.066|0.043 0.035|0.028|0.019|0.013 25 0.78010.61010.47810.37510.29510.23310.18410.14610.11610.09210.059 0.038 0.03010.024 0.016 0.010 lo.77210.598|o.46410.3610.2810.220lo.17210.135|0.106|0.084|0.0530.0330.026|0.021 0.0140.009 27 0.7640.58610.45010.34710.26810.207|o.1610.125 0.09810.07610.047 0.029 0.023 0.018|0.011 0.007 10.757|0.5740.4370.333|0.255|0.1960.1500.1160.0900.069|0.0420.0260.0200.016|0.010 0.006 10.749|0.5630.4240.3210.2430.1850.1410.1070.0820.0630.0370.02210.017 0.0140.008|0.005 10.74210.55210.41210.30810.2310.1740.13110.09910.0750.05710.03310.020|0.015|0.012]0.007|0.004 40 10.67210.45310.30710.20810.14210.09710.06710.04610.03210.022 0.011 0.005 0.004 0.003 0.01 10.001 50 bodo.372022840.1410.08710.0540.0340.0210.013/0oogl0.03 0.00 loon 0.001 371.771.7721:132/1.925 2.011 949227629523.2 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1 1.010 1.020 1.030 1.040 1.050 1.0601.070 1.080 1.090 1.100 1.120 1.140|1.150 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.166 1.1881.210 1.254 1.300 1.323 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.405 1.482 1.521 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.412 1.464 1.574 1.689 1.749 5 1.051|1.104 1.159 1.2171.2761.338|1.403/1.469|1.539|1.611 1.762| 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 2.195 2.313 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.211 2.502 2.660 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 1.094 1.1951.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.773|3.252 3.518 1.105 1.219 1.344 1.480 1.629 1.791 1.967|2.159 2.367 2.594 3.106 3.707 4.046 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 1.127 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 1.149 1.319 1.513 1.732 1.980/2.2612.5792.937 3.342 3.798 4.887 6.261 7.076 1.161 1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.642 4.177 5.474 7.1388.137 1.173 1.373 1.6051.8732.1832.540 2.952 3.426 3.970 4.595 6.130 8.1379.358 1.184 1.400 1.653 1.948 2.2922.6933.1593.700 4.328 5.054 6.8669.27610.76 1.1961.428 1.7022.0262.4072.854 3.380 3.996 4.7175.560 7.690 10.5812.38 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 1.220 1.486 1.8062.1912.653|3.207|3.870 4.661 5.6046.727 9.646 13.74 16.37 1.232 1.516 1.860 2.279 2.786 3.400 4.1415.034 6.109 7.400 10.80 15.67 18.82 1.245 1.546 1.916 2.370 2.925 3.6044.430 5.4376.659 8.140|12.10 17.86 21.64 1.257 1.577 1.974 2.465 3.072 3.820 4.741 5.871 7.258 8.954 13.55 20.36 24.89 1.270 1.608 2.033 2.563 3.225 4.049 5.072 6.341 7.911 9.850 15.18 23.21 28.63 1.282 1.641 2.094 2.666 3.386 4.292 5.4276.848 8.623 10.83 17.00 26.46 32.92 |1.295 1.673|2.1572.772 3.556 4.549 5.807 7.3969.399 11.92 19.04 30.17 37.86 1.308 1.707 2.221 2.883|3.733 4.8226.214 7.988 10.25 13.11 21.32 34.39 43.54 1.321 1.741 2.288 2.999 3.920 5.1126.649 8.627 11.17 14.42 23.88 39.20 50.07 29 1.335/1.7762.357|3.119|4.1165.418|7.114|9.317|12.17|15.86|26.75 1.348 1.8112.427|3.2434.3225.7437.612 10.06 13.27 17.45 29.96 50.95 66.21 1.4892.208|3.2624.801 7.040 10.29 14.9721.72 31.41 45.2693.05 188.9267.9 1.645/2.692 4.384 7.107 11.47 18.42 29.46|46.90 74.36 117.4 289.0 700.2 1,084 153824273641142901205391963 ovo AWN Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.9090.8930.8770.8700.862 0.8470.833 1.970 1.942 1.9131.886 1.8591.8331.808 1.783 1.759 1.736 1.6901.647 1.6261.6051.5661.528 2.9412.8842.8292.775 2.723 2.673 2.624 2.577 2.531 2.4872.4022.3222.2832.246/2.174/2.106 3.902 3.808 3.7173.630 3.546 3.465 3.3873.3123.240 3.1703.0372.9142.8552.798/2.6902.589 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.7913.6053.433|3.352|3.274 3.127|2.991 5.795 5.601 5.4175.2425.0764.917 4.767 4.623 4.4864.355 4.111 3.8893.7843.685 3.498|3.326 5.2065.033 4.868|4.5644.288|4.160|4.039|3.812[3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.7475.535 5.3354.968|4.639|4.4874.3444.078|3.837 8.566 8.1627.786 | 7.435 7.108 6.802 6.515 6.247 5.9955.7595.3284.9464.772 4.607 4.303 4.031 9.471 8.983 | 8.530 8.1117.722 7.360 7.024 6.710 6.418 6.1455.6505.216|5.0194.8334.494 4.192 10.368 9.787 9.253 8.760 8.3067.887 | 7.499 7.139 6.805 6.495 5.938|5.4535.2345.029|4.656|4.327 11.255 10.575 9.954 9.3858.8638.384 7.943 7.536 7.161 6.8146.1945.6605.4215.197 4.793 4.439 12.13411.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.1036.4245.8425.5835.342 4.9104.533 14 13.004 12.10611.29610.5639.899 9.295 8.745 8.244 7.786 7.3676.628|6.002/5.7245.468|5.0084.611 15 13.865|12.849|11.938|11.118(10.380 9.7129.108| 8.559 | 8.061 7.606|6.81116. 142|5.847|5.575|5.092|4.675 16 14.71813.578 12.561 11.652 10.83810.106 9.447 8.851 8.313 7.8246.9746.2655.9545.6695.1624.730 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.1206.373/6.047 5.7495.222 4.775 18 16.398 14.992 13.754 12.65911.690 10.828 10.059 9.372 8.756 8.2017.250 6.467|6.128|5.8185.2734.812 19 17.226 15.678 14.32413.134 12.085 11.15810.336 9.604 8.950 8.365 7.3666.5506.1985.8775.3164.844 20 18.046 16.35114.877 13.590 12.462 11.47010.594 9.818 9.129 8.51417.4696.6236.259 5.9295.3534.870 118.857|17.011|15.415|14.029|12.821|11.764|10.836|10.017 9.292 8.6497.5626.6876.3125.9735.384|4.891 22 19.660 17.65815.937 14.451 13.163 12.042 11.061 10.2011 9.4428.7727.6456.7436.3596.0115.4104.909 23 20.456 18.292 16.444 14.857 13.48912.30311.272 10.371 9.580 8.8837.718|6.7926.3996.0445.432 4.925 24 121.24318.914 16.93615.247 13.799 12.550 11.469 10.529 9.7078.9857.7846.8356.4346.0735.4514.937 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7.8436.8736.4646.097 5.467 4.948 22.795/20.12117.877 15.983 14.375 13.00311.826 10.8109.929 9.161 7.8966.906|6.4916.1185.480 4.956 27 23.560 20.707 18.32716.33014.64313.211|11.987 10.935 10.0279.237 7.9436.9356.5146.136|5.4924.964 28 24.316|21.281 18.764 16.663 14.89813.406 12.137 11.051 10.116|9.307 7.9846.961|6.5346.1525.5024.970 29 25.066/21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198|9.3708.0226.9836.551|6.166|5.5104.975 30 25.80822.39619.600 17.292 15.372 13.765 12.409 11.258|10.27419.427|8.0557.0036.566|6.1775.517|4.979 32.83527.355|23.115 19.793 17.159 15.046 13.332 11.92510.7579.7798.244 7.1056.6426.2335.548|4.997 50 39.19631.42425.73021.48218.25615.76213.801|12.233/10.962|9.915/8.304|7.133|6.661|6.246|5.55414.999 Future Value of Ordinary Annuity of $1 IPeriods| 1% 12% | 3% | 4% | 5% | 6% | 7% | 8% 19% | 10% 12% 14% 15% | 1.00011.000 1.000 1.000 1.00011.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010/2.020/2.030/2.040/2.050/2.060|2.070 2.080/2.0902.100/2.120/2.140/2.150 3.030]3.0603.0913.1223.1533.184]3.215 ]3.246]3.278]3.310]3.374]3.440 3.473 14.060]4.122]4.184|4.246|4.310|4.375|4.440 14.506]4.573]4.641]4.779]4.92114.993 5.101 |5.20415.309 5.4165.52615.637|5.751 |5.867|5.985 6.105 6.353 6.610 6.742 6.15216.30816.4686.6336.8026.9757.153 17.33617.5237.7168.1158.536|8.754 7 |7.214|7.4347.662)7.898/8.142|8.394] 8.654 8.9239.2009.487]10.09 10.73|11.07 18.286]8.583]8.892j9.214|9.549|9.897|10.26010.64|11.03 11.44 12.30 13.2313.73 9.369|9.755110.1610.58 11.03 11.49| 11.98 12.49|13.02|13.58|14.7816.09 16.79 10.46 10.95 11.46]12.01|12.58|13.18] 13.82 |14.49|15.19|15.94 17.55 19.34 20.30 11.57|12.17|12.81J13.49|14.21|14.97] 15.78 ]16.65]17.56] 18.53 20.65|23.04|24.35 12.68|13.4114.19|15.03|15.92J16.87| 17.89 18.9820.14|21.38/24.13/27.27]29.00 13 |13.8114.68|15.6216.63|17.71|18.88| 20.14 21.50 22.95|24.52|28.03 32.0934 114.95]15.97|17.09|18.2919.60|21.02|22.55 24.21/26.02|27.98|32.39|37.58|40.50 16.10|17.29|18.60|20.02|21.58|23.28125.13 [27.15|29.36|31.77|37.28|43.84147.58 117.26]18.64|20.16l21.82|23.66)25.67|27.89 30.32|33.00|35.95 42.75 50.98 55.72 18.43|20.01 |21.76l23.70/25.84|28.21|30.84 33.75136.97|40.54148.88/59.1265.08 19.61|21.41|23.41|25.65|28.13/30.91| 34.00 37.45|41.30|45.60(55.75 68.39175.84 20.81|22.84|25.12|27.67|30.54|33.76] 37.38 |41.45146.02|51.1663.44|78.97]88.21 22.02|24.30/26.87|29.78|33.07|36.79|41.00 |45.76l51.16157.2872.05 91.02 102.4 23.24|25.78]28.68|31.97|35.72|39.99] 44.87 50.42 56.7664.00|81.70|104.8[118.8 24.47|27.30/30.54|34.2538.51|43.39|49.01 55.46 62.87|71.40 92.50]120.4137.6 25.72|28.85]32.45136.62|41.43147.00| 53.44 ]60.89 69.53l79.54|104.6|138.3|159.3 26.97|30.42 34.43|39.08144.50 50.82] 58.18 [66.76l76.79]88.50[118.2158.7|184.2 25 28.2432.03|36.46|41.65147.73 54.86| 63.25 73.11 84.70/98.35|133.3181.9/212.8 29.5333.67|38.55144.31|51.11 [59.16] 68.68 79.95]93.32109.2150.3|208.3/245.7 27 (30.82 35.34|40.7147.08 54.67|63.7174.48 87.35102.7|121.1|169.4|238.5/283.6 32.1337.05142.93149.97|58.40|68.53] 80.70 ]95.34|113.0|134.2190.7|272.9327.1 33.4538.79|45.2252.97|62.32 73.64 87.35 104.0|124.1148.6214.6312.1377.2 34.78]40.57|47.5856.08 66.44|79.06194.46 [113.3136.3164.5|241.3/356.8|434.7 |48.8960.40 75.40 95.03|120.8|154.8) 199.6 259.1337.9442.6767.11,342|1,779 64.46|84.58112.8 152.7|209.3/290.3 406.5 573.81815.11,164 2,400|4,9957,218