Josef Company borrowed money that must be repaid in 20 years. The company wants to make sure the loan will be repaid at the end of year 20. So it invests $12,800 at the end of each year at 12% interest compounded annually. What was the amount of the original loan? (Use Table 13.1.) (Do not round intermediate calculations. Round your answer to the nearest cent.)
Loan amount $
TABLE 13.1 Ordinary annuity table: Compound sum of an annuity of $1 Period 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 2 4 5 6 8 10 1.0000 10000 1.0000 1.000 1.000 1.0000 1.0000 10000 10000 1.0000 1.0000 1.0000 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 2.1000 2.1 100 2.1200 2.1300 3.0604 3.0909 3.1216 3.15253.1836 3.2149 3.2464 3.2781 3.3100 3.3421 3.3744 3.4069 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.7097 4.7793 4.8498 5.2040 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.2278 6.3528 6.4803 6.308 6.4684 6.6330 6.80196.9753 7.1533 7.33597.5233 7.5233 7.7156 7.9129 8.1152 8.3227 7.4343 7.66257.89838.1420 8.3938 8.65408.9228 9.2004 9.4872 9.7833 10.0890 10.4047 8.5829 8.89239.2142 9.54919.8975 10.2598 10.6366 11.028511.435911.8594 12.2997 12.7573 9.7546 10.1591 10.5828 1.0265 1.4913 11.9780 12.4876 13.0210 13.5795 14.1640 14.7757 15.4157 10.9497 11.4639 12.006 12.5779 13.1808 13.8164 14.4866 15.1929 15.9374 16.7220 17.5487 18.4197 12.1687 12.8078 13.4863 14.2068 14.9716 15.7836 16.6455 17.5603 1 8.5312 19.5614 20.6546 21.8143 13.4120 14.1920 15.0258 15.9171 16.8699 17.8884 18.9771 20.1407 21.3843 22.7132 24.1331 25.6502 14.6803 15.6178 16.6268 17.7129 18.8821 20.1406 21.4953 22.9534 24.5227 26.2116 28.0291 29.9847 15.9739 17.0863 18.2919 19.5986 21.0150 22.5505 24.2149 26.0192 27.9750 30.0949 32.3926 34.8827 17.2934 18.5989 20.0236 21.5785 23.2759 25.1290 27.1521 29.3609 3 1.7725 34.4054 37.2797 40.4174 18.6392 20.1569 21.8245 23.6574 25.6725 27.888030.3243 33.0034 35.9497 39.1899 42.7533 46.6717 20.012021.7616 23.697525.8403 28.2128 30.8402 33.7503 36.9737 40.5447 44.5008 48.8837 53.7390 21.4122 23.4144 25.6454 28.1323 30.9056 33.9990 37.4503 41.3014 45.5992 50.3959 5 5.7497 61.7251 22.8405 25.1169 27.6712 30.538933.759937.3789 41.4463 46.0185 51.1591 56.9395 63.4397 70.7494 24.2973 26.8704 29.7781 33.0659 36.7855 40.9954 45.7620 51.1602 57.2750 64.2028 72.0524 80.9468 32.030236.459341.6459 47.7270 54.8644 63.2489 73.1060 84.7010 98.3471 114.4133 133.3338 155.6194 40.5679 47.5754 56.0849 66.4386 79.0580 94.4606 113.2833 136.3077 164.4941 199.0209241.3327 293.1989 60.401775.401295.0254 120.7993 154.7616 199.6346 259.0569 337.8831 442.5928 581.8260 767.0913 1013.7030 84.5790 112.7968 152.6669 209.3470 290.3351 406.5277 573.771 815.0853 1163.9090 1668.7710 2400.0180 3459.5010 20 30 40 Note: This is only a sampling of tables available. The Business Math Handbook shows tables from 1% to 15%
