Question
Use the following tables to calculate the present value of a $484,000 @ 6%, 5-year bond that pays $29,040 interest annually, if the market rate
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Use the following tables to calculate the present value of a $484,000 @ 6%, 5-year bond that pays $29,040 interest annually, if the market rate of interest is 7%. 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
$___________
Use the following tables to calculate the present value of a $484,000 @ 6%, 5-year bond that pays $29,040 interest annually, if the market rate of interest is 7%. 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 | |
$___________
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
22nd Edition
324401841, 978-0-324-6250, 0-324-62509-X, 978-0324401844
