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Present Value of $1 Periods 926 857 952 935 962 925 889 855 822 790 760 2 3 4 82

ID: 2542675 • Letter: P

Question

Present Value of $1 Periods 926 857 952 935 962 925 889 855 822 790 760 2 3 4 823 784 763 708 650 596 792 735 863 837 6 705 623 582 583 627 592 460 422 388 9 766 703 676 650 625 463 429 397 368 722 475 557 530 527 497 469 326 299 388 362 623 605 587 292 270 250 232 252 436 494 396 554 456 Periods 10% 15% 870 756 658 572 497 432 833 694 579 482 402 335 783 693 797 2 4 6 769 675 592 826 683 659 593 636 567 480 425 482 452 467 424 386 350 327 284 233 308 322 295 .237 .135 286 229 290 263 239 078 054 038 026 083

Explanation / Answer

Answer

Answers

Received (A)

Interest rate

Time

PV of $1 (B)

Annuity of $1 (C )

NPV (A x B) or (A x C)

a.

$      19,700.00

4%

End of 15 Years

$              0.555

$        10,933.50

b.

$        7,280.00

6%

end of 4th year

$              0.792

$          5,765.76

$      15,600.00

6%

end of 8th year

$              0.627

$          9,781.20

Total

$      22,880.00

$        15,546.96

c.

$        2,120.00

3%

for 7 years

$                 6.230

$        13,207.60

d.

$      61,000.00

5%

for 3 years

$                 2.723

$    1,66,103.00

$      84,250.00

5%

end of 4th year

$              0.823

$        69,337.75

Total

$ 1,45,250.00

$    2,35,440.75

Answers

Received (A)

Interest rate

Time

PV of $1 (B)

Annuity of $1 (C )

NPV (A x B) or (A x C)

a.

$      19,700.00

4%

End of 15 Years

$              0.555

$        10,933.50

b.

$        7,280.00

6%

end of 4th year

$              0.792

$          5,765.76

$      15,600.00

6%

end of 8th year

$              0.627

$          9,781.20

Total

$      22,880.00

$        15,546.96

c.

$        2,120.00

3%

for 7 years

$                 6.230

$        13,207.60

d.

$      61,000.00

5%

for 3 years

$                 2.723

$    1,66,103.00

$      84,250.00

5%

end of 4th year

$              0.823

$        69,337.75

Total

$ 1,45,250.00

$    2,35,440.75