wNHO Periods 1 25 39 4% 54 1.0000 1.000 1.000 1.000 1.0000 1 1.0100 1.0200 1.0300 1.0400 1.0588 2 1.0201 1.0464 1.0609 1.0816 1.1025 3 1.0303 1.0612 1.0927 1.1249 1.1576 4 1.0406 1.8824 1.1255 1.1699 1.2155 5 1.0510 1.1041 1.1593 1.2167 1.2763 6 1.0615 1. 1262 1.1941 1.2653 1.3401 Use this partial future value of 1 table to determine the future value of $120,000 assuming an interest rate of 3 percent and 5 periods. $120,000 $146,004 $139,116 $138.912 Knowledge Check 01 Periods 14 24 34 44 1 0.9901 0.9804 8.9709 0.9615 2. 8.9803 0.9612 2.9426 0.9246 3 0.9706 8.9423 0.9151 0.8890 4 0.9610 0.9238 0.8885 0.8548 5 0.9515 0.9507 0.8626 0.8219 Use this partial present value of 1 table to determine the present value of $400,000 assuming an interest rate of 3 percent and 4 periods? $400,000 $450,197 $355,400 $300,000 What is the present value of two $1.000 payments that would arrive at the end of every year assuming an interest rate of 5 percent using the formula method? (Round to 0 decimal places.) $1,859.41 $1,005.00 $1,111.11 $6,66767 Knowledge Check 01 GOWN Periods 14 2 0.9901 6.9894 0.9709 0.9615 2 1.9704 1.9416 1.9135 1.8861 3 2.9410 2.8839 2.8286 2.7751 4 3.9020 3.8077 3.7171 3.6299 5 4.8534 4.7135 4.5797 4.4518 6 5.7955 5.6014 5.41725.2421 7 6.7282 6.4720 6.2303 6.0021 8 7.6517 7.3255 7.0197 6.7327 Use the partial present value of an annuity table to determine the present value of seven $125,000 payments that would arrive at the end of every year assuming an interest rate of 4 percent? (Round to 0 decimal places $875,000 $125,000 $750,263 $130,000 If you know that the value of an asset is $100 today, what concept will tell you what it will be worth in 5 years given a certain interest rate? Present Value Future Value Prediction Value Discounted Value Determine how much money will you have saved if you were to deposit $1,000 in a savings account at the end of each year for 2 years, assuming the savings account paid 6 percent interest using the formula method. $1,200.00 $1,600.00 $2,060,00 $2,000.00 Periods 1 28 3444 55 1 1.0000 1.000 1.000 1.000 1.0000 2.0100 2.200 2.8300 2.0400 2.500 3 3.0301 3.0604 3.2909 3.1216 3.1525 4 4.0604 4.1216 4.1836 4.2465 4.3101 5 5.1010 5.2040 5.3091 5.4163 5.5256 Use the partial future value of an annuity table to determine how much money will you have saved towards the purchase of a new car if you were to deposit $8,000 in a savings account ot the end of each year for 4 years, assuming the savings account paid 5 percent Interest $32,000.00 $43,330.40 $34,480.80 $8,000.00
