Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,369,000, or it can make annual payments of $289,700 for 15 years. Click here to view factor tables Payments must begin now and be made on the first day of each of the 15 years, what payment method would you recommend assuming an expected effective-interest rate of 9% during the future period? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Present value of annual payment		$
Recommended payment method		Annual PaymentsImmediate Payment

Interest Tables and Their Contents

1. Future Value of 1 Table. Contains the amounts to which 1 will accumulate if deposited now at a specified rate and left for a specified number of periods (Table 6.1).

TABLE 6.1 Future Value of 1 (Future Value of a Single Sum)

FVFn,i=(1+i)n
(n) Periods	2%	2%	3%	4%	5%	6%
1	1.02000	1.02500	1.03000	1.04000	1.05000	1.06000
2	1.04040	1.05063	1.06090	1.08160	1.10250	1.12360
3	1.06121	1.07689	1.09273	1.12486	1.15763	1.19102
4	1.08243	1.10381	1.12551	1.16986	1.21551	1.26248
5	1.10408	1.13141	1.15927	1.21665	1.27628	1.33823
6	1.12616	1.15969	1.19405	1.26532	1.34010	1.41852
7	1.14869	1.18869	1.22987	1.31593	1.40710	1.50363
8	1.17166	1.21840	1.26677	1.36857	1.47746	1.59385
9	1.19509	1.24886	1.30477	1.42331	1.55133	1.68948
10	1.21899	1.28008	1.34392	1.48024	1.62889	1.79085
11	1.24337	1.31209	1.38423	1.53945	1.71034	1.89830
12	1.26824	1.34489	1.42576	1.60103	1.79586	2.01220
13	1.29361	1.37851	1.46853	1.66507	1.88565	2.13293
14	1.31948	1.41297	1.51259	1.73168	1.97993	2.26090
15	1.34587	1.44830	1.55797	1.80094	2.07893	2.39656
16	1.37279	1.48451	1.60471	1.87298	2.18287	2.54035
17	1.40024	1.52162	1.65285	1.94790	2.29202	2.69277
18	1.42825	1.55966	1.70243	2.02582	2.40662	2.85434
19	1.45681	1.59865	1.75351	2.10685	2.52695	3.02560
20	1.48595	1.63862	1.80611	2.19112	2.65330	3.20714
21	1.51567	1.67958	1.86029	2.27877	2.78596	3.39956
22	1.54598	1.72157	1.91610	2.36992	2.92526	3.60354
23	1.57690	1.76461	1.97359	2.46472	3.07152	3.81975
24	1.60844	1.80873	2.03279	2.56330	3.22510	4.04893
25	1.64061	1.85394	2.09378	2.66584	3.38635	4.29187
26	1.67342	1.90029	2.15659	2.77247	3.55567	4.54938
27	1.70689	1.94780	2.22129	2.88337	3.73346	4.82235
28	1.74102	1.99650	2.28793	2.99870	3.92013	5.11169
29	1.77584	2.04641	2.35657	3.11865	4.11614	5.41839
30	1.81136	2.09757	2.42726	3.24340	4.32194	5.74349
31	1.84759	2.15001	2.50008	3.37313	4.53804	6.08810
32	1.88454	2.20376	2.57508	3.50806	4.76494	6.45339
33	1.92223	2.25885	2.65234	3.64838	5.00319	6.84059
34	1.96068	2.31532	2.73191	3.79432	5.25335	7.25103
35	1.99989	2.37321	2.81386	3.94609	5.51602	7.68609
36	2.03989	2.43254	2.89828	4.10393	5.79182	8.14725
37	2.08069	2.49335	2.98523	4.26809	6.08141	8.63609
38	2.12230	2.55568	3.07478	4.43881	6.38548	9.15425
39	2.16474	2.61957	3.16703	4.61637	6.70475	9.70351
40	2.20804	2.68506	3.26204	4.80102	7.03999	10.28572

8%	9%	10%	11%	12%	15%	(n) Periods
1.08000	1.09000	1.10000	1.11000	1.12000	1.15000	1
1.16640	1.18810	1.21000	1.23210	1.25440	1.32250	2
1.25971	1.29503	1.33100	1.36763	1.40493	1.52088	3
1.36049	1.41158	1.46410	1.51807	1.57352	1.74901	4
1.46933	1.53862	1.61051	1.68506	1.76234	2.01136	5
1.58687	1.67710	1.77156	1.87041	1.97382	2.31306	6
1.71382	1.82804	1.94872	2.07616	2.21068	2.66002	7
1.85093	1.99256	2.14359	2.30454	2.47596	3.05902	8
1.99900	2.17189	2.35795	2.55803	2.77308	3.51788	9
2.15892	2.36736	2.59374	2.83942	3.10585	4.04556	10
2.33164	2.58043	2.85312	3.15176	3.47855	4.65239	11
2.51817	2.81267	3.13843	3.49845	3.89598	5.35025	12
2.71962	3.06581	3.45227	3.88328	4.36349	6.15279	13
2.93719	3.34173	3.79750	4.31044	4.88711	7.07571	14
3.17217	3.64248	4.17725	4.78459	5.47357	8.13706	15
3.42594	3.97031	4.59497	5.31089	6.13039	9.35762	16
3.70002	4.32763	5.05447	5.89509	6.86604	10.76126	17
3.99602	4.71712	5.55992	6.54355	7.68997	12.37545	18
4.31570	5.14166	6.11591	7.26334	8.61276	14.23177	19
4.66096	5.60441	6.72750	8.06231	9.64629	16.36654	20
5.03383	6.10881	7.40025	8.94917	10.80385	18.82152	21
5.43654	6.65860	8.14028	9.93357	12.10031	21.64475	22
5.87146	7.25787	8.95430	11.02627	13.55235	24.89146	23
6.34118	7.91108	9.84973	12.23916	15.17863	28.62518	24
6.84847	8.62308	10.83471	13.58546	17.00000	32.91895	25
7.39635	9.39916	11.91818	15.07986	19.04007	37.85680	26
7.98806	10.24508	13.10999	16.73865	21.32488	43.53532	27
8.62711	11.16714	14.42099	18.57990	23.88387	50.06561	28
9.31727	12.17218	15.86309	20.62369	26.74993	57.57545	29
10.06266	13.26768	17.44940	22.89230	29.95992	66.21177	30
10.86767	14.46177	19.19434	25.41045	33.55511	76.14354	31
11.73708	15.76333	21.11378	28.20560	37.58173	87.56507	32
12.67605	17.18203	23.22515	31.30821	42.09153	100.69983	33
13.69013	18.72841	25.54767	34.75212	47.14252	115.80480	34
14.78534	20.41397	28.10244	38.57485	52.79962	133.17552	35
15.96817	22.25123	30.91268	42.81808	59.13557	153.15185	36
17.24563	24.25384	34.00395	47.52807	66.23184	176.12463	37
18.62528	26.43668	37.40434	52.75616	74.17966	202.54332	38
20.11530	28.81598	41.14479	58.55934	83.08122	232.92482	39
21.72452	31.40942	45.25926	65.00087	93.05097	267.86355	40