BAWA T3 RQ 7-12:
QUESTION 7:
Charles wants to retire in 17 years. At that time he wants to be able to withdraw?$22,000 at the end of each year for 16 years. Assume that money can be deposited at 8?% per year compounded annually. What exact amount will Charles need in 17?years? Round to the nearest cent. (ANNUITY PRESENT VALUE TABLE ATTACHED)
QUESTION 8
Southwest Dry Cleaners believes that it will need new equipment in 9 years. The equipment will cost?$26,000. What lump sum should be invested today at 8?% compounded?semiannually, to yield?$26,000? Round answers to the nearest cent.
(2XTABLES ATTACHED - PRESENT VALUE OF A DOLLAR PAGES 1-2)
QUESTION 9
Use an annuity table to find the periodic payment that will render the sum. Round to the nearest cent.
S=$50,000?, interest is?9% compounded?monthly, payments made at the end of each month for 3 years
QUESTION 10:
Find the least amount that could be deposited in a bank account today at 8?% compounded semiannually to allow?$1,875 withdrawals at the end of each 6 months for 12 years. Round to the nearest cent. (ANNUITY PRESENT TABLE ATTACHED)
QUESTION 11:
Find the effective rate corresponding to the nominal rate. Round to the nearest hundredth of a percent. 10?% compounded quarterly
QUESTION 12:
Find the amount of each payment into a sinking fund if ?$6,000 must be accumulated. Payments are made at the end of each quarter for 3?years, with interest of?6% compounded quarterly. Round to the nearest cent. (SINKING FUND TABLE ATTACHED PARTS 1-2)
Present Value of an Annuity Table Interest Rate per Period Period 1% 1:% 2% 3% 5% 6%% 8% 10%% .99010 98522 .98039 97561 97087 96154 95238 94340 92593 .90909 1.97040 1.95588 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 1.78326 1.73554 2.94099 2.91220 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 2.57710 248685 3.90197 385438 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 3.31213 3.16987 4.85343 4.78264 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 3.99271 3.79079 5.79548 5.69719 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 4.62288 4.35526 6.72819 6.59821 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 5.20637 4.86842 7.65168 7.48593 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 5.74664 5.33493 8.56602 8 36052 8,16224 7.97087 7.7861 1 7.43533 7.10782 6.80169 6.24689 5.75902 10 9.47130 9.22218 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 6.71008 6.14457 11 10.36763 10.07112 9.78685 951421 9.25262 8.76048 8.30641 7.88687 7.13896 6.49506 12 11.25506 10.90751 1 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.53608 6.81369 12.13374 11.73153 11.34837 10.98318 10.63496 9.98565 9.39357 8.85268 7.90378 7.10336 13,00370 12 54338 12.10625 11.69091 11.29607 10.56312 9.89864 9.29496 8.24424 7.36669 13,86505 13 34323 12.84926 12 38138 11.93794 11.11839 10.37966 9,71225 8.55948 7.60605 14.71787 14.13126 13.57771 13.05500 1256110 11.65230 10.83777 10.10590 8.85137 7.82371 15.56225 14.90765 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.12164 8.02155 18 16.39827 15.67256 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 9.37189 8.20141 17.22601 16.42617 15.67846 14.97889 1432380 13.13394 12.08532 11.15812 9.60360 8.36492 18.04555 17.16864 16.35143 15.58916 14.87747 13.59033 12.46221 11.46992 9.81815 8.51356 18.85698 17.90014 17.01121 16.18455 15.41502 14.02916 12.82115 11.76406 10.01680 8.64869 19.66038 18.62082 17.65805 16.76541 15.93692 14.45112 13.16300 12.04158 10.20074 8.77154 20.45582 1933086 18.29220 17.33211 16.44361 14.85684 13.48857 12.30338 10.37106 8.88322 21.24339 20.03041 18.91393 17.88499 16.93554 15.24696 13.79864 12.55036 10.52876 8.98474 25 22.02316 20.71961 19.52346 1842438 5 17.41315 15.62208 14.09394 12.78336 10.67478 9.07704Present Value of a Dollar Table Interest Rate per Period Period 1% 1% 2% 24% 3% 4% 6% 10% 99010 98522 98039 97561 .97087 96154 95238 94340 .92593 90909 98030 97066 96117 95181 .94260 .92456 90703 .89000 85734 82645 97059 .95632 94232 92860 91514 86384 .83962 .79383 75131 96098 94218 92385 90595 83849 ,85480 .82270 .79209 73503 68301 .95147 92826 90573 88385 .86261 .82193 .78353 .74726 68058 .62092 94205 91454 .88797 86230 .83748 .79031 .74622 .70496 .63017 56447 93272 9010 87056 84127 .81309 .75992 .71068 66506 58349 .51316 92348 88771 .85349 82075 78941 .73069 67684 62741 $4027 4665 .91434 87459 .83676 80073 .76642 .70259 64461 .39190 50025 42410 10 .90529 86167 82035 .78120 .74409 .67556 61391 .55830 46319 .38554 11 89632 84893 80426 76214 .72242 .64958 58468 52679 42888 .35049 12 88745 83639 .78:849 74356 .70138 62460 55684 49697 39711 3186 13 87866 82403 77303 72542 68095 60057 52032 46884 36770 28966 14 86996 81185 .75788 .70773 -66112 57748 .50507 44230 34036 .26333 15 86135 .79985 74301 69047 .64186 .55526 .48102 41727 .31524 .23939 16 85282 .78803 72845 67362 .62317 53391 45811 39365 29189 21763 84438 .7763 71416 .65720 60502 .51337 43630 37136 27027 .19784 18 83602 .76491 70016 .641 17 58739 49363 .41552 ,35034 25025 17986 19 82774 .75361 68643 62553 57029 47464 .39573 .33051 23171 .16351 81954 .74247 67297 61027 .55368 .45639 37689 .31180 21455 .14864 81143 .73150 65978 59539 .53755 43883 35894 29416 19856 .13513 80340 .72069 64684 .58086 52189 42196 34185 .27751 18394 .12285 79544 .71004 63416 56670 .50669 40573 .32557 .26180 17032 .11168 78757 69954 62172 55288 49193 39012 31007 24698 15770 10153 77977 68921 60953 53939 47761 .37512 29530 23300 14602 .09230 .77205 .6790 59758 .52623 46369 .36069 .28124 .21981 -13520 08391i Present Value of a Dollar table page 2 - X Present Value of a Dollar Table Interest Rate per Period Period 1% 14% 2% 24% 4% 5% 6% 8% 10% 27 76440 .66899 58586 51340 45019 .34682 26785 .20737 12519 07628 28 .75684 65910 .57437 50088 43708 .33348 25509 .19563 .11591 .06934 29 74934 64936 56311 48866 42435 .32065 .24295 .18456 10733 06304 30 74192 63976 .55207 47674 41199 30632 .23138 .17411 09938 05731 73458 63031 .54125 46511 39949 29646 22036 .16425 09202 .05210 .72730 62099 53063 45377 38834 .28506 .20987 15496 08520 04736 72010 61182 52023 44270 37703 27409 19987 .14619 07889 .04305 .71297 60277 5100 43191 36604 .26355 .19035 .13791 07305 .03914 70591 59387 50003 42137 35538 .25342 18129 13011 06763 03558 69892 58509 49022 41109 34503 24367 17266 .12274 06262 .03235 69200 57644 48061 40107 .33498 .23430 16444 .11579 05799 02941 68515 56792 47115 39128 .32523 .22529 15661 .10924 05369 .02673 67837 55953 4619 38174 .31575 21662 .14915 10306 04971 02430 67165 55126 45284 .37243 30656 20829 .14205 .09722 04603 02209 66500 54312 44401 36335 29763 20028 13528 .09172 104262 02009 65842 53509 43530 35448 28896 .19257 .12884 .08653 03946 .01826 65190 52718 42677 34584 28054 .18517 .12270 08163 03654 01660 44 64545 $1939 41840 33740 27237 17805 11686 07701 03383 01509 63905 51171 41020 .32917 26444 -17120 11130 07265 03133 .01372 63273 50415 40215 .321 15 25674 .16461 10600 06854 02901 .01247 62646 49670 .39427 .31331 24926 .15828 .10095 06456 02686 01134 48 62026 48936 3865 30567 24200 .15219 09614 06100 02487 01031 61412 48213 37896 .29822 23495 .14634 .09156 05755 02303 00937i Annuity Present Values - X Present Value of an Annuity Table Interest Rate per Period Period 1% 1:% 204 8% 10% 1 .99010 98522 98039 97561 97087 .96154 95238 .94340 -92593 90909 1.97040 1.95585 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 1.78326 1.73554 2.94099 2.91220 2.88388 2 85602 2.82861 2.77509 2.72325 2.67301 2.57710 2 48685 3.90197 3.85438 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 3.31213 3.16987 4.85343 4.78264 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 3.99271 3.79079 5.79548 5.69719 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 462288 4 35526 6.72819 6.59821 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 5.20637 4 86842 7.65168 7.48593 7.32548 7.17014 7.01969 6.73274 6,46321 6.20979 5.74664 5.33493 8.56602 8.36052 8. 16224 7.97087 7.78611 7.43533 7.10782 6,80169 6.24689 5.75902 10 9.47130 9.22218 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 6.71008 6.14457 10.36763 10.07112 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.13896 6.49506 11.25506 10.90751 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.53608 6.81369 13 12.13374 11.73153 11.34837 10.98318 10.63496 9.98565 9.39357 8.85268 7.90378 7.10336 14 13,00370 12 54338 12.10625 11.69091 11.29607 10.56312 9,89864 9.29495 8.24424 7.36669 15 13,86505 13.34323 12.84926 12 38138 11.93794 11.11839 10.37966 9.71225 8.55948 7.60608 16 14.71787 1413126 13.57771 1305500 12.56110 11.65230 10.83777 10.10590 8.85137 7.82371 17 15.56225 14.90765 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.12164 8.02155 18 16.39827 15.67256 14.99203 1435336 13.75351 12.65930 11.68959 10.82760 937189 8.20141 17.22601 16.42617 15.67846 14.97889 1432380 13.13394 12.08532 11.15812 9.60360 8.36492 18.04555 17.16864 16.35143 15.58916 14.87747 13.59033 12.46221 11.46992 9.81815 8.51356 18.85698 17.90014 17.01121 16.18455 15.41502 14.02916 12.82115 11.76408 10.01680 8.64869 19.66038 18.62082 17.65805 16.76541 15.93692 14.45112 13.16300 12.04158 10.20074 8.77154 20.45582 19.33086 18.29220 17.33211 16.44361 14.85684 13.48857 12.30338 10.37106 8.88322 21.24339 20.03041 18.91393 17.88499 16.93554 4 15.24696 13.79864 12.55036 10.52876 8.98474 22.02316 20.71961 19.52346 1842438 17.41315 15.62208 14.09394 12.78336 10.67478 9.077040 Sinking Fund Table up to 25 periods - sauna-g Fm: Tabla [maul he pupal\" Mind 19:. 100. m. 2;\" Mi. .c. 5% or. 291 109i. 1 1.00000 1.1mm 1.00000 1mm 1mm 1mm 1.00000 1.00000 1.00000 1.00000 2 .1051 AM: 119505 403m am 40000 A3100 Assn MT? 47019 3 .3300: m 30,615 32514 32353 32005 31121 31011 30000 Jam 4 2.1523 2440-: 2-1252 .0100: m .3549 23201 12000 22102 215-17 5 .1000: 10100 19210 .1900: 1803.5 .1306] mm 17140 110.15 .15330 6 .16sz .1605: .1595; .l5655 .1546} .1507:- .1m .1435 .1363: .1296t 1' .1306: .13056 .13151 .13250 .1306] .12661 .1229: .1191: .1130? .105\" 0 12069 .1168 .11651 .1144?! .11246 .1035: .1047: .1010: 09401 M44 9 .10674 .10461 .ms: JED\" m m .0906! .0570} 000011 .07364 10 .0955: .0033 .0913; m 05123 05320 010150 0755? .0000; .0027: 11 133015 15429 .08210 13311 137000 .01\": .0103? .0607? .0661\" .05396 12 m mm mm mm m 05055 .0923; 00023 05210 00016 13 0121] mm 00002 05005 05.10] mm 05645 00190 01552 mm )4 136690 .0602 .08260 136054 ms: 05116? .0310: 04150 .04110 .0895 Is 00212 00094 0m: .0597 mm 00004 .0001: 0m mm mm 16 1351911 .0517? .0565 05160 M .0682 .002? m: .0138 M82 17 0.1426 032.00 .0199? M91 101595 mm 03310 005-14 02960 00466 10 05008 Ml 04m 01-107 0427] 00099 .0355 m 02670 02193 19 .01005 M568 MN; 01116 03881 MM M75 02962. .0MI3 .01955 20 .0151: 01325 .01110 00915 M mass 0300.4 mm 02155 01706 21 01303 mm m mm 00407 00120 02000 02500 .0190; .0155: 22 W m mam 01165 M: 1120211 112597 112305 mam 1mm 23 00000 00073 0345; mm m1 00731 00414 02123 mm mm :4 .0370! 00492 03287 00091 m m .022? mm mm 01130 25 mm mm 0312: was new 00401 .0209! mm 01368 01017
