Appendix D Present value of an annuity of $1, PFA PVA = A 1 (1 + Y Percent 1% 3% 5% 8% 11% Period 1 2% 0.980 12% 0.893 0.990 0.926 2 3 0.952 1.859 2.723 3.546 4.329 5.076 1.970 2.941 3.902 4.853 5.795 7% 0.935 1.808 2.624 3.387 4.100 4.767 4 1.783 2.577 3.312 3.993 4.623 1.690 2.402 3.037 3.605 4.111 5 6 7 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10.575 5.206 6.728 7.652 8.566 9.471 10.368 4.564 4.968 8 9 10 11 9% 0.917 1.759 2.531 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 7.161 7.487 7.786 8.061 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 0.971 1.913 2.829 3.717 4.580 5.417 6.230 7.020 7.786 8.530 9.253 9.954 10.635 11.296 11.938 12.561 13.166 13.754 14.324 14.877 17.413 19.600 23.115 25.730 5.786 6.463 7.108 7.722 8.306 8.863 9.394 4% 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 8.760 9.385 9.986 10.563 11.118 11.652 12.166 12.659 13.134 13.590 15.622 17.292 19.793 21.482 12 11.255 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 7.887 8.384 8.853 9.295 9.712 10.106 10.477 10.828 11.158 11.470 12.783 13.765 15.046 15.762 5.328 5.650 5.938 6.194 6.424 6.628 6.811 0.901 1.713 2.444 3.102 3.696 4.231 4.712 5.146 5.537 5.889 6.207 6.492 6.750 6.982 7.191 7.379 7.549 7.702 7.839 7.963 8.422 8.694 8.951 9.042 13 11.348 14 15 16 17 5.389 5.971 6.515 7.024 7.499 7.943 8.358 8.745 9.108 9.447 9.763 10.059 10.336 10.594 11.654 12.409 13.332 13.801 12.134 13.004 13.865 14.718 15.562 16.398 17.226 18.046 22.023 25.808 32.835 39.196 18 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 8.851 9.122 9.372 9.604 9.818 10.675 11.258 11.925 12.233 12.106 12.849 13.578 14.292 14.992 15.678 16.351 19.523 22.396 27.355 31.424 9.899 10.380 10.838 11.274 11.690 12.085 12.462 14.094 15.372 17.159 18.256 19 20 8.313 8.544 8.756 8.950 9.129 7.824 8.022 8.201 8.365 8.514 9.077 9.427 9.779 9.915 6.974 7.120 7.250 7.366 7.469 7.843 8.055 8.244 8.304 25 30 9.823 10.274 10.757 10.962 40 50 Appendix D (concluded) Present value of an annuity of $1 Percent Period 13% 14% 15% 16% 17% 18% 19% 20% 25% 30% 35% 40% 1 NMN 0.885 1.668 2.361 2.974 3.517 3.998 0.877 1.647 2.322 2.914 3.433 3.889 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 0.714 1.224 1.589 1.849 2.035 2.168 2.263 2.331 2.379 8 0.870 1.626 2.283 2.855 3.352 3.784 4.160 4.487 4.772 5.019 5.234 5.421 5.583 5.724 5.847 5.954 4.423 4.799 5.132 5.426 5.687 9 10 11 12 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.668 5.749 5.818 5.877 5.929 6.097 6.177 6.233 6.246 0.855 1.585 2.210 2.743 3.199 3.589 3.922 4.207 4.451 4.659 4.836 4.988 5.118 5.229 5.324 5.405 5.475 5.534 5.584 5.628 5.766 5.829 5.871 5.880 4.288 4.639 4.946 5.2 16 5.453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 6.873 7.003 7.105 7.133 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.162 5.222 5.273 5.316 5.353 5.467 5.517 5.548 5.554 0.840 1.547 2.140 2.639 3.058 3.410 3.706 3.954 4.163 4.339 4.486 4.611 4.715 4.802 4.876 4.938 4.988 5.033 5.070 5.101 5.195 5.235 5.258 5.262 5.918 6.122 6.302 6.462 6.604 6.729 6.840 0.769 1.361 1.816 2.166 2.436 2.643 2.802 2.925 3.019 3.092 3.147 3.190 3.223 3.249 3.268 3.283 3.295 3.304 0.800 1.440 1.952 2.362 2.689 2.951 3.161 3.329 3.463 3.571 3.656 3.725 3.780 3.824 3.859 3.887 3.910 3.928 3.942 3.954 3.985 3.995 3.999 4.000 2.414 2.438 2.456 2.469 0.741 1.289 1.696 1.997 2.220 2.385 2.508 2.598 2.665 2.715 2.752 2.779 2.799 2.814 2.825 2.834 2.840 2.844 2.848 2.850 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.843 4.870 4.948 4.979 4.997 4.999 13 14 15 16 17 18 19 50% 0.667 1.111 1.407 1.605 1.737 1.824 1.883 1.922 1.948 1.965 1.977 1.985 1.990 1.993 1.995 1.997 1.998 1.999 1.999 1.999 2.000 2.000 2.000 2.000 2.478 2.484 2.489 2.492 2.494 2.496 2.497 2.499 2.500 2.500 20 6.047 6.128 6.198 6.259 6.464 6.566 6.642 6.661 6.938 7.025 7.330 7.496 7.634 7.675 25 3.311 3.316 3.329 3.332 3.333 3.333 30 40 2.856 2.857 2.857 2.857 50 2.500 Betty Bronson has just retired after 25 years with the electric company. Her total pension funds have an accumulated value of $280,000, and her life expectancy is 16 more years. Her pension fund manager assumes he can earn a 12 percent return on her assets. What will be her yearly annuity for the next 16 years? Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Annuity
