A machine is purchased by making payments of $19000 at the beginning of each of the next five years. The interest rate was 11%. The future value of an ordinary annuity of 1 for five periods is 6.22780. The present value of an ordinary annuity of 1 for five periods is 3.69590. What was the cost of the machine?

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$77947

$118328

$131344

$70223

2Given below are the present value factors for $1.00 discounted at 10% for one to five periods. Interest is compounded annually at 10%.

Periods

Present Value of $1

Discounted at 10% per Period

1

0.909

2

0.826

3

0.751

4

0.683

5

0.621

If an individual deposits $18600 in a savings account today, what amount of cash would be available two years from today?

$18600 0.909 2

$18600 0.826

$18600 0.826 2

$18600 0.826

3.Given below are the present value factors for $1.00 discounted at 11% for one to five periods. Interest is compounded annually at 11%.

Periods

Present Value of $1

Discounted at 11% per Period

1

0.901

2

0.812

3

0.731

4

0.659

5

0.593

What is the present value today of $16200 to be received six years from today?

$16200 0.659 3

$16200 0.731 2

$16200 0.593 0.901

$16200 0.901 6

4.