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Use the following tables to calculate the present value of a $265,000 @ 5%, 5-year bond that pays $13,250 interest annually, if the market rate

  1. Use the following tables to calculate the present value of a $265,000 @ 5%, 5-year bond that pays $13,250 interest annually, if the market rate of interest is 10%. Round to the nearest dollar.

    Present Value of $1 Present Value of Annuity of $1

    Periods

    5 %

    6 %

    7 %

    10 %

    Periods

    5 %

    6 %

    7 %

    10 %

    1

    .95238

    .94340

    .93458

    .90909

    1

    .95238

    .94340

    .93458

    .90909

    2

    .90703

    .89000

    .87344

    .82645

    2

    1.85941

    1.83339

    1.80802

    1.73554

    3

    .86384

    .83962

    .81630

    .75131

    3

    2.72325

    2.67301

    2.62432

    2.48685

    4

    .82270

    .79209

    .76290

    .68301

    4

    3.54595

    3.46511

    3.38721

    3.16987

    5

    .78353

    .74726

    .71299

    .62092

    5

    4.32948

    4.21236

    4.10020

    3.79079

    6

    .74622

    .70496

    .66634

    .56447

    6

    5.07569

    4.91732

    4.76654

    4.35526

    7

    .71068

    .66506

    .62275

    .51316

    7

    5.78637

    5.58238

    5.38929

    4.86842

    8

    .67684

    .62741

    .58201

    .46651

    8

    6.46321

    6.20979

    5.97130

    5.33493

    9

    .64461

    .59190

    .54393

    .42410

    9

    7.10782

    6.80169

    6.51523

    5.75902

    10

    .61391

    .55839

    .50835

    .38554

    10

    7.72173

    7.36009

    7.02358

    6.14457

    $fill in the blank 1

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