Present and future value tables of $1 at 3% are presented below. N FV $1 PV...

Transcribed Image Text:

Present and future value tables of $1 at 3% are presented below. N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 3 1.09273 0.91514 4 1.12551 0.88849 1.91347 3.0909 2.82861 4.1836 3.71710 2.0909 1.97087 5 1.15927 0.86261 5.3091 6 1.19405 0.83748 6.4684 4.57971 5.41719 7 1.22987 0.81309 7.6625 6.23028 8 1.26677 0.78941 8.8923 7.01969 3.1836 2.91347 4.3091 3.82861 5.4684 4.71710 6.6625 5.57971 7.8923 6.41719 9.1591 7.23028 9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969 10 1.34392 0.74409 11.4639 8.53020 11 1.38423 0.72242 12.8078 12 1.42576 0.70138 14.1920 9.25262 9.95400 13 1.46853 0.68095 15.6178 10.63496 11.8078 8.78611 13.1920 9.53020 14.6178 10.25262 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 12.56110 20.7616 12.93794 16 1.60471 0.62317 20.1569 Justine Company leases equipment under a long-term lease that calls for 12 semiannual payments of 41,493.87. The first payment is due at the inception of the lease. The annual rate on the lease is 6%. What is the value of the leased asset at the inception of the lease? Present and future value tables of $1 at 3% are presented below. N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 3 1.09273 0.91514 4 1.12551 0.88849 1.91347 3.0909 2.82861 4.1836 3.71710 2.0909 1.97087 5 1.15927 0.86261 5.3091 6 1.19405 0.83748 6.4684 4.57971 5.41719 7 1.22987 0.81309 7.6625 6.23028 8 1.26677 0.78941 8.8923 7.01969 3.1836 2.91347 4.3091 3.82861 5.4684 4.71710 6.6625 5.57971 7.8923 6.41719 9.1591 7.23028 9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969 10 1.34392 0.74409 11.4639 8.53020 11 1.38423 0.72242 12.8078 12 1.42576 0.70138 14.1920 9.25262 9.95400 13 1.46853 0.68095 15.6178 10.63496 11.8078 8.78611 13.1920 9.53020 14.6178 10.25262 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 12.56110 20.7616 12.93794 16 1.60471 0.62317 20.1569 Justine Company leases equipment under a long-term lease that calls for 12 semiannual payments of 41,493.87. The first payment is due at the inception of the lease. The annual rate on the lease is 6%. What is the value of the leased asset at the inception of the lease?