TABLE B.1 Present Value of 1 Rate Perlods 2% 3% 4% 5 6% 7% 8% 9% 10 12% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 0.9803 0.9612 0.9426 0.9246 0.9070 08900 0.8734 0.8573 0.8417 0.8264 0.7972 0.7561 0.9706 0.9423 0.9151 0.8890 08638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7118 0.6575 0.9610 0.9238 0.8885 0.8548 08227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6355 0.5718 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5674 0.4972 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5066 0.4323 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4523 0.3759 0.9235 0.8535 0.7894 0.7307 06768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4039 0.3269 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606 0.2843 10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220 0.2472 0.8963 0.8043 0.7224 0.6496 0.5847 05268 0.4751 0.4289 0.3875 0.3505 0.2875 0.2149 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2567 0.1869 13 0.8787 0.77300.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2292 0.1625 14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2046 0.1413 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.1827 0.1229 16 0.8528 0.72840.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1631 0.1069 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1456 0.0929 18 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1300 0.0808 19 0.8277 0.68640.5703 0.47460.3957 0.3305 0.2765 0.2317 0.1945 0.1635 0.1161 0.0703 20 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1037 0.0611 25 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0588 0.0304 30 0.7419 0.55210.4120 0.3083 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.03340.0151 35 0.7059 0.5000 0.3554 0.2534 0.1813 0.1301 0.0937 0.0676 0.0490 0.0356 0.0189 0.0075 40 0.6717 0.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0.0460 0.0318 0.0221 0.0107 0.0037 Used to compute the present value of a known future anoint or example: How much would you ned to invest today at 10% ed semiannually to accumulate S5 in 6 years frorn today? Using the factors of n-12 and i = 5% ( 12 semiannual periods and a semiannual rate of 5%), the factor is 05568. You would need to invest S2.784 today ($5000 05568). TABLE B.2 Future Value of 1 1% 5% 12% 15% 1.0201 .0404 10609 1.0816 .1025 .1236 11449 11664 1.1881 0303 1.0612 10927 1249 1.1576 1910 1.2250 2597 1.2950 1.33 1.0510 .1041 .1593 1.2167 2763 3382 1.4026 1 0937 1.1951 1.3048 1.4233 1.5513 16895 1.8385 1.9990 2.1719 1.1046 1.2190 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.59373.1058 1157 1.2434 1.3842 1.5395 1.7103 1.8983 2.1049 2.3316 2.5804 1.1268 .2682 .4258 1.6010 .7959 2.0122 2.2522 2.5182 2.8127 .1381 1.2936 14685 1.6651 1.8856 2.1329 2,4098 2.7196 3.0658 3.4 1.1495 13195 15126 1.7317 1.97992.2609 2.5785 2.9372 3.3417 1.1610 1.3459 15580 1.8009 2.0789 2.3966 2.7590 3.1722 3.6425 1.1726 1.3728 1.6047 18730 2.1829 2.5404 2.9522 3.4259 3.9703 1.1843 1.4002 16528 1.9479 2.2920 2.6928 3.1588 3.7000 4.3276 1.1961 1.4282 1.7024 2.0258 2.4066 2.8543 3.37993.9960 47171 .2081 1.4568 1.7535 2.1068 2.5270 3.0256 3.6165 4.3157 5.1417 1.2202 1.4859 1.8061 2.1911 2.6533 3.2071 38697 4.6610 5.6044 6.7275 9.6463 16.3665 1.2824 1.6406 2.0938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231 10.83477.0001 1.3478 1.8114 2.4273 3.2434 4.3219 5.7435 7.6123 0.0627 13.2677 7.4494 29.9599 1.4166 1.9999 2.8139 3.9461 5.5160 7.6861 10.6766 14.7853 20.4140 28.1024 52.7996 133.1755 .4889 2.2080 3.2620 48010 7.0400 10.2857 14.9745 21.7245 31.4094 45.2593 93.0510 267.8635 Used to compute the future value of a known present amount. For example: what is the accumulated value of S3 000 invested today at 8% compounded quarterly for 5 years? Using the factors of n = 20 and i = 2% (20 quarterty periods and a quarterly interest rate of 2%), the factor is 1.4859. The accumulated value is S4 457.70 ($3,000 1.4859) TABLE B.3 Present Value of an Annuity of 1 3% 4% 5% 7% 10% 12% 15% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 2.9410 2.8839 2.8286 .775 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.4018 2.2832 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.0373 2.8550 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.6048 3.3522 5.7955 5.6014 5.4172 5.2421 5.0757 4.91734.7665 4.6229 4.4859 4.3553 4.1114 3.7845 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.9676 4.4873 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.3282 4.7716 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502 5.0188 0.3676 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 6.8052 6.4951 5.9377 5.2337 11.2551 0.5753 9.9540 9.3851 8.8633 8.3838 2.1337 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.4235 5.5831 3.0037 2.1062 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 6.6282 5.7245 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 6.8109 5.8474 4.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 6.9740 5.9542 15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.1196 6.0472 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.2497 6.1280 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.3658 6.1982 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.4694 6.2593 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 7.8431 6.4641 25.8077 22.3965 19.6004 7.2920 15.3725 13.7648 2.4090 11.2578 10.2737 9.4269 8.0552 6.5660 29.4086 24.9986 21.487218.6646 16.3742 14.4982 12.9477 11.6546 10.5668 9.6442 8.1755 6.6166 32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.2438 6.6418 2 Used to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2,000 per year for 10 years assuming an annual interest rate of 9%. For (n= 10, i= 9%), the PV factor is 6.4177. S2.000 per year for 10 years is the equivalent of $12.835 today ($2,000 6.4177). 2 Citywide Company issues bonds with a par value of $67000 on their stated issue date. The bonds mature in five years and pay 11% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 10%. Clable B1. Table B.2. Table B.3. and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. What is the amount of each semiannual interest payment for these bonds? 2. How many semiannual interest payments will be made on these bonds over their life? 3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium. 4. Compute the price of the bonds as of their issue date 5. Prepare the journal entry to record the bonds' issuance 0.32/2 points awarded Scored Complete this question by entering your answers in the tabs below eBook Req 1 to 3 Req 4 Req 5 What is the amount of each semiannual interest payment for these bonds? How many semiannual interest payments will be made on these bonds over their life? Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium Par (ma Semiannu Rate Semiannual cash interest payment value Number of payments Whether the bonds are issued at par, at a discount, or at a premium? Req 1 to 3 Req 4 > Red text indicates no response was expected in a cell or a formula based calculation is incorrect; no points deducted. Citywide Company issues bonds with a par value of $67,000 on their stated issue date. The bonds mature in five years and pay 11% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 10%. able B1. lable B.2. Table B,3, and Table B4) (Use appropriate factor(s) from the tables provided.) 1. What is the amount of each semiannual interest payment for these bonds? 2. How many semlannual Interest payments wll be made on these bonds over thelr life? 3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium 4. Compute the price of the bonds as of their issue date. 0.32/2 points awarded Scored5. Prepare the joumal enty to record the bonds Issuance Complcte this qucstion by cntering your answers in the tabs below eDook Req 1 to 3 Rea 4 Req 5 Compute the price of the honds as of their issue date. (Round intermediate calculations to the nearest dollar amount.) s are Based on: Flow Amount Present Value ar (maturity value Intcrest (annuity) Price of bonds Req 1 to 3 Req 5 Citywide Company issues bonds with a par value of $67,000 on their stated issue date. The bonds mature in five years and pay 11% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 10%. (Table B1, Table B.2, Table B3. and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. What is the amount of each semiannual interest payment for these bonds? 2. How many semlannual Interest payments will be made on these bonds over thelr life? 3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium 4. Compute the price of the bonds as of their issue date 5. Prepare the journal entry to record the bonds' issuance 0.32/2 points awarded Scored Complete this question by entering your answers in the tabs below eBook Req 1 to 3 Req4Req 5 Prepare the journal entry to record the bonds' issuance. (Round intermediate calculations to the nearest dollar amount.) No Transaction General Journal Debit Credit Cash Discount on bonds payable Bonds payable 67,000 K Req 4 Req 6