Murray Company borrows $430,000 cash from a bank and in return signs an installment note for five annual payments of equal amount, with the first payment due one year after the note is signed. Compute the amount of the annual payment for each of the following annual market rates: (Table B.3) (Use PV factors from teble provided.) Amount of Initial Cash Proceeds Market Rate PV Factor annual payment (a) (b) |(c) 4.0 % 6.0 % 8.0 % 1 TABLE B.3 (1 + i Present Value of an Annuity of 1 Rate Periods I% 2% 3% 4% 6% 7% 8% 9 % 10% 12% 15% 0.9901 1.9704 2.9410 3.9020 0.9804 0.9709 1.9135 0.9615 d9524 1.8594 0.9434 0.9259 0.9346 18080 0.9174 1.7591 0.9091 0.8929 1.6901 0.8696 1.6257 2.2832 2.8550 2 1.9416 1.8861 1.8334 17833 2.5771 3.3121 1.7355 3 4 2.8839 3.8077 2.8286 3.7171 2.7751 3.6299 2.7232 3.5460 2.6730 3.465 4.2124 2.6243 3.3872 4.1002 4.7665 5.3893 2.5313 3.2397 3.8897 2.4869 3.1699 2.4018 3.0373 4.8534 4.7135 5.6014 6.4720 4.5797 5.4172 6.2303 7.0197 7.7861 8.5302 9.2526 9.9540 10.6350 4.4518 4.3295 3.9927 3.7908 3.6048 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 5.2421 4.6229 5.2064 4.4859 5.0330 5.5348 5.9952 6.4177 6 7 5.7955 6.7282 7.6517 8.5660 9.4713 10.3676 1.2551 12.1337 13.0037 13.865 147179 15.5623 5.0757 5.7864 4.9173 5.5824 4.3553 4.8684 5.3349 4.1114 4.5638 6.0021 6.2098 6.8017 7.3255 6.7327 6.4632 5.9713 4.9676 5.7466 6.2469 6.7101 7.1390 8.1622 8.9826 74353 8.1109 7.1078 7.7217 6.5152 7.0236 7.4987 5.7590 6.1446 5.3282 5.6502 5.9377 10 7.360 78869 8.3838 8.8527 6.8052 6.495 6.8137 7.1034 9.7868 8.7605 8.3064 5.2337 5.4206 5.5831 5.7245 5.8474 5.9542 10.5753 11.3484 9.385 9.9856 7.5361 7.9038 7.1607 7.4869 6.1944 6.4235 6.6282 6.8109 6.9740 12 13 8.8633 9.3936 7.9427 8.3577 8.7455 9.1079 9.2950 9.7122 10.1059 10.4773 10.8276 11.1581 11.4699 12.7834 12.1062 12.8493 10.563 1.1184 I1.6523 12.1657 12.6593 13.1339 13.5903 15.6221 17.2920 18.6646 8.2442 8.5595 8.8514 7.7862 8.0607 7.3667 7.6061 7,8237 14 1.2961 1.9379 12.5611 9.8986 10.3797 16 13.5777 10.8378 9.4466 8.3126 8.5436 8.7556 7.1196 72497 7.3658 6.0472 6.1280 6.1982 !74 17 18 14.2919 14.9920 9.7632 10.0591 9.1216 9.3719 8.0216 8.2014 13.166 13.7535 14.3238 14.8775 17.4131 19.6004 21.4872 163983 17.2260 18.0456 1.6896 15.6785 12.0853 8.9501 8.3649 10.3356 10.5940 19 9.6036 9.1285 9.8226 10.2737 10.5668 7.4694 7.8431 8.0552 8.1755 98181 8.5136 9.0770 9.4269 6.2593 6.4641 6.5660 20 12.4622 16.3514 19.5235 I1.6536 10.6748 11.2578 1.6546 25 22.0232 14.0939 13.7648 14.4982 15.0463 12.4090 25.8077 29.4086 30 22.3965 15.3725 16.3742 17.1591 6.6166 6.6418 35 24.9986 12.9477 9.6442 40 32.8347 27.3555 23.1148 19.7928 13.3317 I1.9246 10.7574 9.779 8.2438 II Murray Company borrows $430,000 cash from a bank and in return signs an installment note for five annual payments of equal amount, with the first payment due one year after the note is signed. Compute the amount of the annual payment for each of the following annual market rates: (Table B3)(Use PV factors from table provided.) Initial Cash Show All Items Factor Proceeds Amount of annual payment Market Rate 0 (a) 4.0 % 6.0 % 0 (b) (c) 8.0 % X
