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Use the following tables to calculate the present value of a $389,000 @ 6%, 5-year bond that pays $23,340 interest annually, if the market rate

Use the following tables to calculate the present value of a $389,000 @ 6%, 5-year bond that pays $23,340 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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