Knowledge Check 01 A friend asks to borrow $635.52 today and promises to repay you $1,000 with interest compounded annually at 12%. How many years (compounding periods) will pass before you receive the payment? (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of S1 and PVAD of S1) (Use appropriate factor(s) from the tables provided. Round your final answer to the nearest whole year.) Number of years TABLE 1 Future Value of $1 FV = $1(1+ 6.09 7.016 8.09 9.04 10.096 12.096 20.096 1.06000 1.12360 1.19102 1.07000 1.14490 1 ORDOO L16640 w 104 1.5% 2016 2.546 30 3.596 4096 4.596 5.096 5.54 1101000 101500 102000 102500 1000 101500 104000 104500 105000 105500 2 102010 1.09022104040 105063 1.06090 1.07123 108160 1.09203 1.10250 1.11303 3 109030 104568 1.06121 107689 109273 110872 1.12486 114117 115763 L17424 4 1.04060 106135108243 1.10381 1.12551 114752 1.16986 1.19252 121551 123882 5 1.05101 107728 10408113141 15927 116769121665 1.24618 1.27628 130696 11.0% 1.1 1000 1.23210 1. 10000 1.21000 1.33100 1.20000 1.44000 1.22501 1.09000 1.18810 1 29503 1.41158 1.53862 1.25971 136049 1.72800 1.12000 1.25440 140493 1.57352 1.76234 1.25248 133823 1.31080 1.40255 1.36763 1.51807 1.68500 1.46410 1.61051 2.07360 2.48832 1.46933 158687 1.67710 1.97382 2.98596 1.50073 100578 182804 6 1.06152 1094 112616 115909 1.1905 1.22926 126532130226 1.14010 1.37854 7 107714 110914 114869 115869 122987 27228 131595 1.36086 140710 145468 8 1076 112649 1.17166 121840176677 131681 136557 142210 147746 1.53469 109369 114399 119509 124836 1.30477 136290 1.42331 148610 155133 1 61909 10 1.10462110054 121899 1.2800834392 1.41060 148024 155297 162889 1.70814 1.41852 1.50363 1.59385 1.689-48 1.790RS 1.99256 1.71819 1.83846 1.96715 1.71382 1.85093 199900 2.15892 1.771.56 1 94872 2.14359 235795 2.59374 1.87041 2.07616 2.30454 2.55804 2.83942 2.21068 247596 2.77308 3.10585 3.58318 4.29982 5.15978 6.19174 2.17189 2.36736 2.10485 233164 3.15176 7.43008 391610 2.25219 3.49845 11 111567 11779 124337 131209 1.3423 145997 1.53945 1.60285 171014 1.0209189830 12 113083 1.19562 126824 1.34489 142576 151107 160103 1.6958579586 1.90121 201220 13 115809 121355 129301 1.37851 146853 156996 166507 1712201585652.00577 213299 14 114947 123176 131948 1.41297 1.51259 1.61309 1.73168 185194 1979932.11609 220000 15 116097 1.25033 134587 1.450 1.55797 1.67535 1.80094 19352 207893221348 239656 251817 271962 258043 281266 306580 3.34173 364245 2.85312 3.13843 3.45227 3.79750 3.47855 3.89598 4.36349 2.40985 10.69932 2.57853 2.75903 431044 2.93719 3.17217 4.58711 5.47357 1283918 15.40702 4.17725 4.78459 250035 2.69277 397031 295216 315882 531089 6.13039 16 125 126 137279 148451 160471 173399 1.8729 2.02237 218267 2.35526 17 11840 1200 140034 152162 1635 1.7948 1947902113352792022.45480 13 114 110734 145 155966 1.70243 15149 2.0252 220545 2.40662 262147 19 110811132095 145681 15986575351 192750 2.10655 210786 2.57095 276565 20 1.22019 1486 143595 163562 180011 1.98979219112 241171 2.65330 291776 432769 2.85434 3.01560 320714 3.49594 3.70002 399602 431570 4.66096 459497 5.05447 5.55992 0.11591 6.72750 471712 S Nos 5.80441 3.61653 3.1968 5.89509 6.54355 726334 806231 6.86604 7.68997 8.61276 9.64619 22.18611 2662333 31.94800 38 33700 21 123239 136706 151567 167958 109 2093 2.27877257094 2.7456 307333 339950 414056 5.03383 6.10881 740035 394917 100385 46.00512 15 128143 145095 1.64661 1514200378 234 2665043005433.863538139 5.42743 8 623081083471 13.58546 17.00006 95 39622 101178515630812097572676280579334340314532432194496395 574349 761226 1005306 131678 17492292302992 23737631 40 141 142 104 104 104 93 4010358166 709 851331102572 1497446 21.7345231409424525926 65.000879305097140077100 TABLE 2 Present Value of $1 51 PV (1 w 1.044 1.594 20N 2.596 3.04 15 4.04 4.5 $.046 5.5 6,048 7209 8.04 9.046 10.046 11.09 12.04 20.096 6990100,98522098039097561092057090618 09615 0961 0.95238 0.94787 0.94340 093458 092593 091743 0.90909 0.90090 0.89286 0.83333 0.9803097056095117/6951810.94260 0.93381092456 0.91573 0.90703 089845 089000 0.87344 085734 0.84168 0.82645 081162 0.79719 0.69414 309705909563091232092800.91514090194 0900 0.87630 0.86384 085161 0.83962 081630 079383 0.77218 0.75131 0.73119 0.71178 0.57870 96098 0.94218/092059090871408480083856 0.82270 080722 0.79209 0.76290 0.73503 0.70843 068301 0.65873 0.63552 048225 095147/9780/90570082193 080245 0.78353 076513 0.74726 0.71299 068058 0.61993 062092 0.59345 0.56743 040188 0.94305 0.9149.197.633 0.83745 81350 0.79031 0.16790 0.74622 0.72525 0.70496 0.66634 0.63017 0.59637 0.56447 0.53464 0.50663 033490 70932372 9010/2050.841230130907850992 0.73453 0.71068 0.68744 060506 0.62275 058349 054703 0.136 0.48166 0.45235 0.27908 092348 0908207078941759 0.73009 070319 067614 0.65160 0.62741 0.58201 0.54027 0.50187 046651 0.43393 0.40388 0.23257 20.91434240310760.80073067397 0.70259 067290 064461 0.61763 0.59190054393 050025 0.46043 0.43410 19092 0.36061 0.19381 10 090519016702201507120449070892 067558 0,64393 0.61391 05543 055839 0.50835 0.46319 042241 038554 035218 032197 0.16151 11.933 0.1893 0.80436 0.4214.7243 0.48493 695 0.61620 0.54 0.55491 0.53679 0.47509 0.43558 0.38753 0.350 031728 0.28743 0.13459 12 24/0363907531904856 070306617 0.62460 055614 0.52598 0.49697 0.44401 0.39711 035553 0.31863 0.28584 025668 0.11216 13078600773607252 063085061006005756121 0.53032 049556 0.46884 0.4149 03670 0.32615 0.20966 0.25751 0.22917 0.09346 14/ 011150707077366113 061778 071453991 0.0 0.47257 0.44230 0.38782 0.34046 029925 026333 0.23199 0.20462 0.07789 19001/0.79983074016901761186 0.596033051612048102 044793 041727 0.36345 031524 0.24 0.2393 0.0100 018270006191 161 0.6 0.72545 0.87341 0.62317 0.57 0.83398447 48 42458 0.30165 0.33873 20189 0.25187 1788 1819 1631205409 11 O 0.7769071416 065730 060502072016 0110 0.40245 037136 031657 0.27027 023107 019754 016963 014564 0.04507 18 DA0076491 070016064117 0587905380445210 041552 0347 035034 0.29556 025025 0.21199 017986 015202 0.13004 0.03756 196770756106854306355 0.5702905201041464041330.39573 036158 033051 0.27651 0.23171 0.1949 0.16351 013708 011011 003130 30 10.1007291 61021 0.53 0.5025456941464 0.3769 04273 031130 0.25842 021455 0.17543 0.14864 0.12403 0.10367 0.03608 31 114 7310097 0.59530 3755 .45589.4355 17 0.3594 0.33486 0.19416 34151.1966 0.1670 1351311174 0.00356 0.03174 246/53017035253 09193 436 0.391204770 011007 021666 03495 0.197150157700 17640 0.10153000100000125 25 OTT MOS 0.5193 0.4771 0.4315037512 033273 0.29530 02033 0233000.13435 0145020115970092300073610058200104 28 15684 000 043700 38165 33348 629157 025509 0.22332 0.19563 015040 0.11591 0.00955 0.00934 00532004187 00050 2969340416043435 38875 032085 027903 0.24295 0.21168 015456 014056 0.10733 0.08215 0.06104 0.04349 0.03738 0.00506 374193 0.41199 0.35638 0.30831 0.387000.23138 0.30164 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 03338 0.00421 30.73458661031 0342 020546 025550022036 019015016425 012277 009302 0.0001500210 0.03935 000 000351 40 66116516 ASIAN 2557 0.2009 0.17193 0.14205 0 11746 009722 000678 04603 0.03154 003209 0.01538 001075000008 TABLE 3 Future Value of an Ordinary Annuity of $1 (1+1) - 1 FVA 9.09 12.09 SI 4546 1.56 6.09 07 SE 09 1.544 5.54 1.0000 10000 10000 00001 0000 1 1.0000 10.0% 1.0000 21000 7.09 10000 2.0700 1 10000 20150 10000 20450 1.0000 20800 10000 20900 10000 21100 1.0000 2.1200 3.3744 20.04 10000 2.2000 36400 5.300 OOCOT 20400 20350 20500 20000 20550 2 St 0000100001 00001 OOTDT otot 0010 LEOS STO 1000 000+ 6050 OTO'S KESES 5000 3.1216 SESTE 3.1370 1 31680 GIZE 3.2464 30756 4.1525 3.1836 43746 01191 47293 4499 2901 GHITT SEDES TREE LOOL SEO 4 931 CHE | | | 4.2455 5.4153 1905 99985 4.2782 5.4707 45731 5.9547 7.410 ISOT 5.2010 52563 160CS 5.5256 $ 55811 5.6371 5.7507 7.715 66266 79120 EL 7.1333 6.7169 9 WO 610 OS 7533 9.2004 8.2669 26103 868 8 6540 9:4872 2 9.733 11 594 129159 16.4991 11 459 6.1510 63081 6.3877 6.4654 6.5503 6.6130 72015 7.3110 74343 7.5674 7.5625 7.7794 78903 3580 8.7361 9 98 9.5991 9.9545 101591103035 10.5625 10 10.4022107027 10.9497 11.2014 114639117314 12.0001 SES RES LISO 6 CHE 1656 S6 9.3800 10.8021 89228 100360 124576 144866 9.7210 11.2561 128754 10 0890 12 2997 14.7757 175457 102590 11.9750 138164 9546 COIT OICO E 66151 110200 12.5779 14.1640 FIG II 13.5795 159374 16.7230 25.9587 12 2882 141 SS1991 112 IST 18.5312 20.6545 II. 1633 17.1087 11.4835 12.078 13.1430 13.4054 14.9716 16 15.7836 17.30 17.5603 20.140 14.5835 10.3856 102 154640 SONS 189771 COSTI 069 IVETI SO I PIE 159171 17.710 OVIC 17.159 214953 996 13 139 142368 14.6803 15.104 156178 16,1130 166368 6 CODE IEEE 160 DETE LALELE 6161 CLOZI CI 061591 ELSE FOSSE TES BESI 22 50 ISIOIE OLEEE HIER TESTLE 27.9750 317725 30 4054 20.7841 2170 25. 1290 29 300 15 16 16.621 172934 179319 185989 19.2957 200236 14.6411 33.004 LE 30.1 16 11 1910 179334 18.633 10.1 10.1560 10.070 11145 1744 2014 2011 2017 11 7616 22.7050 23 0975 21.7193 14.7417 SELE SIETE EE COSLEE 405447 TS 25 1404 2114 3050 ISLE CORSO 0666 SELE 36.9737 411013 BOOSH SEOS TLH 906 501 III DOS est to 06 TREE FOR LE 0610 TO HER 19 201109 112.8408 23916035110920572 276712 19411 32 1021 14 30 OST 33.7600 36.7856 TO 100115 165T IS OSTES 0000 ON SP 200 HOC 3.71 4119 INTERNET VE U AT 1 LEH SP ST TO LE 10 19 GOSSOW BEHOE SS SO IN THEIR 00661 ISLOSTI SERE NE TESSER FRESSO E OS Opt 1661 Ostos ( 1000 C 0 0 35.7193 66438 944000 TABLE 4 Present Value of an ordinary Annuity of $1 1 PVA 304 4,046 24 1.54 3.59 5.546 4.546 5.09 Lo 0.99010 3.04 097007 1 09852 3.04 098039 194156 097561 192742 0.01 1999 093593 1.78326 2 191347 0.9564 157267 274896 1.97040 294099 3.50197 0.96154 1.85609 2.77509 1.95538 291220 385433 0.94787 13462 2.69793 3.50515 3 7046 0.94340 093455 183339 1 80802 267301 262432 3.40511 338721 421236 410020 9.048 10.09 11.04 12.04 20.09 091743090909090090 089858033333 1.7591173554 171252169005 152778 2.53129248685244371 240183 210645 32397216987310345 303735 258873 3.88965 3.79079 3.69590 3.60478 2.99061 28838 095238 13541 2.72335 3.54593 43 23281 20164 2.57710 3.31213 4 285603 3.76197 464533 0773 3.6.1990 3.71710 457971 367308 451505 3 5875 431990 5 43534) 4.78264 4.71346 445182 427030 399271 6 79545 5.00143 3.S013 491732 587855 SI5787 5.07569 5.69719 6.591 524214 6 0000S 7 6519 0.47199 6.34999 717014 541719 6,23028 701909 7.76611 6 11454 687396 5.89270 859589 5.7637 6.40321 4.99553 56299 6.91457 4.76654 538929 597130 5.20637 5.74054 74193 $ 765165 4.48593435536 423054 411141 32551 50329546842471220456376 360459 55348253393314612 496764 3.8716 5.995255759025.53705 532825403097 6.41766614457581933 565022 4.19347 7.31541 5.58238 6 20979 6.30169 736009 6 356607 $30052 816234 760769 671274 74353 811090 792051 8.25206 695230 700 791272 7.10782 272175 651523 702358 6.39 6.71003 10 9.47130 898259 8.53020 831601 753763 CONS 7.13896 11 10.36763 16.07112 9.86 9.31411 9.35262 9.00155 8.76048 830641 3.09354 12 11 25508 10 90751 0 55 10.25776 9.95400 9.66333 935501 9118 386325 861852 13 12.13374 11.73153 134837 10.98319 10 63496 1030374 9956 9.6825 9.1957 9. 11708 14 13.00370 12.543 1210625 11 11 11 29607 1097052 10 56312 10 22283 989864 95893 15 13.5650S 1334323 122 123138 11 974 11 51741 1111839 10.73955 103966 1003758 7.58687 33354 585268 929498 7.49567 7.94 835705 8.74547 9.10791 751608 7.90378 324424 855945 6.30519 6.49506 620652 5.93770 4.32706 7.160736313096492366 19637 4.43922 748690710336 6.74987 642355 453265 7.78615736669 695157 6.62817 461057 806069 760608 7.190876.31036 467547 9.71225 16 14.71787 14.13136 13.57771 13.08500 12.56110 1200112 11.652.30 11.23482 10.83777 1046216 10.10590 9.44645 17 15.56225 14 90765 14.29137 1371220 13 16612 12.65132 12.16567 11.70719 1127407 1086461 10.47726 9.76322 18 1639827 1567356 14 99203 1435136 13.75351 13.18968 12 65930 12.15999 11.689591124607 10 32760 10.05909 19 1722601 16.41617 15 67846 14 989 1432380 1370984 13.13394 12 59329 12.08532 11 60765 11.15812 10.33560 201804555 17.1684 1635143 15 51916 1487141 1421340 1359033 13.00794 12 4633111 95038 11.46992 10.50 3.85137 9.12164 937189 960300 331256789371737916 697399 4.72956 854369802155 754 7.11963 4.7463 8755638 20141 71016734967481219 8 9501136192731929 736578434350 9.12855851356 7963337404430958 981815 21 18.85693 1790014 17.01111 16.15453 154 14.9797 14.01916 13:40472 13.52115 11.17534 1176405 1033553 10.01680 9.1924.64509307507 7.5670049133 257202316 26.71901 1952346 14043012415 10 151 15633081483121 14.09194 13:41393 12.78336 1165358 1067478 9.20158907704841747301 494759 3625.10734.0156431 166 30 909 19.000 9305 172920116208915372451453575 13.76483 174094 11 25778 10273659.4291 0937805513 49784 403233492991545 27.35548 25 102731142 217 19.79277 1540158 17 159 1604612 15.04630 13 33171 11 92461 10.7573697799053951058437349000 TABLES Future Value of an Annuity Due of $ FVAD X (1+0) 1.09 2.046 TAS 4,04 456 5.046 7.04 9.096 100% 12.09 20.045 1 10100 1.594 10150 20452 1.000 6.046 1.0600 10400 10450 10500 11300 2 20301 20604 1.1000 23100 2.1370 11544 3.096 10250 1000 110350 2013 09021001 31525 NINJA32149 2563 43091 3635 546545502 2.1536 ILOS 11100 23471 3.7097 1.0700 22149 3:4399 1.3000 26400 21216 3.3465 1.0800 22464 3.500 21744 5.5% 1.0550 2.1680 3.3423 4.5811 SI 2.1525 33101 1.0900 227 3.5731 49547 3.0004 3 32782 1.0909 41523 ONE 4 4,1010 3.1216 4.2010 5.01 3.3746 46371 4.4707 45256 4.8666 44163 3.6330 6.4416 3.6410 5. 1051 6.7156 S $11520 4.7507 6.1533 S2296 53528 7.1152 57169 58019 59753 6.3359 6.5233 6.9129 9299 6.311 7,0192 7.1669 7.6540 2004 . ILIS 7.1420 8.5491 7.9328 96.166 92590 112997 15.0991 6 6.3130 4349 6.54746.66256.7794 6.9 72157 14338 7.5830 3761 1923 SOS 8.2142 3 83685 8.5593 1516 9545 9.1591 90 9 94012 19.1027 99192 10.2011 10110731410061 1010566810863 11,1687/AS 118073121420 12.4864 83500 91021 BE6 8.7216 10.2563 11 374 10.059 125795 7.2018 3.8975 10.4913 12 13 13.9716 10.0266 11 5779 12000 11.4878 100235 12 0210 141929 16 S 10.9780 12.3164 14.7016 112882 12412 10.8594 13 1640 15. 7230 18 5614 13.4866 15 6455 14934 1753 16.5487 19 6546 661 CSERE POSTIE 135835 231331 11 11.6835 12.0412 12.4121 12.7956 13.1920 13.6030 14.0358 14.4440 121230931033651360311404 146178 19.11.30 156165 10 1599 03139474 144504649791 $190 16 063 16 6770 177919 173321 14 15.096156821162934 16.931912.59591829719003619.7541 15162591902 1909 19.971020.45 217193 14.9171 16 7130 185986 153856 177868 15.569 17.21 20.0151 16.888 17.9771 19.1400 20:49 21 550S 212149 241290361521 26.381 1140 219514 25.0192 16.9750 21.7131 25 2016 29 0949 334054 31 1930 19.2936 21.4087 236411 4740 SE 1950 71 01 2730 30.7735 36.2797 22 200 246725 201609 2001 22.0575 66 14 1404 15.737 LIPATE ISSUE 25.9954 284512 1990- 1271167 27.11.19 29.07 32 1000 36 4902 40 3013 999 27.1324 295390 5407 16 174304.0014 10.0110.1647 20.7616 21.7050 11.6073 1718 6141241221321421499264 13 1912 1913 194 1109 25 1736 6113 191122791 267781 2013 A4 276165 2920953093 3290 36 3790 50 151 23 30 1714 35.7850 4620 01001 710534 320000 47191 SED ISRC 32.7831 36761 CH 55.105 POST 111.4710 AT 0199661030 1033.3480 15.1014 39. 39.343 41.3933 48.0057 6183 2525250 300 250 313131 50 1135 5360 58 1560 67 6765 739540 30 31 IAITH BASE 61.754 764194 33 0171010701231459 14857531809043309332703487 40 411 4100 ou 958165 11 1467 1268195 144118910404772136027978103082994365180451264 TABLE 6 Present Value of an Annuity Due of $1 (1 PVAD X (1+1) 7.046 9.646 2.046 4.046 3048 1.596 3.596 5.046 1.00000 195238 6.096 100000 194340 100000 195094 8.046 100000 192593 100000 1 93458 100000 197561 10% 1 100000 2 199010 3 297640 3.94099 5 490197 1.5% 100000 196522 2.95588 391230 465438 100000 198019 294155 3.ES 480773 100000 19701 2.91347 33361 1.00000 196618 2.89909 3.80164 467308 5.54 100000 1.94787 284632 369793 450515 1.00000 196154 2009 3.72509 462990 10.046 11.0% 20.046 100000 100000 100000 100000 1.90909 1.900901.69286 1.83333 2.73554 2.71252 269005252778 3.486 3:44371 3.40183 310648 4109874.10245403735356873 1 00000 1.9174 2.75911 3.53129 423972 285941 3.72325 279742 385602 476197 287267 3.74896 458753 367301 230802 3.61432 438721 3.57710 431213 446511 454595 471710 496 5.51505 5.45183 5399 53148 9 5.78864 669119 5.57971 641719 S85343 6.79545 72519 3.6516 5.64583 650013 73919 7 5.71346 6,60143 14719 333545 9.16 6.32855 711454 6.34214 700305 6.15757 6.89270 5.17025 5.99553 591732 668297 6.58236 7.33451 7.20979 795230 730109 10020 5.76654 63899 697130 7.51523 4.99271 56378 6.20637 6.14664 734689 6 07569 6.76637 74321 10782 4.7907946950 4.60478 3.99061 5.35526 523054 5.11141432551 5.368425.712305.56376460459 6.334936146125.96764 43716 6.75902653705 6.3125 503097 S48592 6.03295 6.53482 6995 5 7.59621 84559) 9.30052 723028 301909 3.78611 7.59589 9 817014 397057 7.81396 3.6070 7.73214 843533 8.26879 10 956602 7.7100 7.41766 IT 3.02.15 1867 3.94369 7.30519 10.41130 10.11315 9.95159 9.75306 9.53030 9.31661 391272 5.72173 8.83783 300 12 113616311971121078665 10.51421 10.5362 10.00155 9.76048 9.5292 9.30641 9.09254 19 1235508 1190151 1157534 1125776 10 95400 10,66338 1038507 10.11156 98615 9.61852 9384 14 13.1974 17359 1334837 1936 169491130214093565 10.61255 1039357 10.11700 935260 15 1400370 135416 13 10615 1269091 07 11930321156312 113 10 564 10 596 10 294495 813896 8.53600 390378 5.16073 7.14457 6.88933 665033 19347 79506 72005289370 532706 7.81300 74923671937 5.0923 810336 774987742355553368 36609790187 760817 561057 3 4500 9.35785 9.74547 9.2014 LEISS ** 14.5 14.42 123 13.1 13.08784 1.5-2 11.73055 11.37966103758 10.71335 10.10791 17 15 71 1513136 14577 14055001561101309112 1205230 1923402 11 377 1146216 111050 1065 116 5622 90705 1529137 14 712201416213651 16567 1310719 12.77071156461 114773610.7622 10.12164 19 171967 16.625 1599201 1516 14 7551 141898 1199 12689591224607 117700 11 09 10.37189 2012201 114017 15.67546 157 153230147094 143959379 13.08532 12 6070512158121131560 10.60360 9.00 31256 5663 9.71 3.60608 1907 7.81086 5.67547 323737916 7971995.72956 9021555489119635.7463 930141016230907 581219 9364929983657854350 9.95011 10.04555 18.169 173514 16.56916 15.87147 15.21140 14.9033 14.00794 13.4671111.9503811.4699311 541 10.31815 10.15 9:51356 363 3.444 3572319 0904 1903 1 1793554 1705891 1834696 15495484798641415170135503610033115116 10.70661 9.98414 9361 742 593710 36262432000 3264438 2145355301564 196577 170111916.14107 1533310 14.59072 1327767 12.15841111938 10.30961 965011 90218 593 403516100608 1909 25730140822210250205448 19 1790 180110416975661599 1436493 12 11 7553 10.50993567 9301 5.99593