Exercise 6-5 Using the appropriate interest table, compute the present values of

Question

Exercise 6-5 Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods. Click here to view factor tables 51,270 receivable at the end of each period for 9 periods compounded at 12%. (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg. 458,581.) Present value Click here to view factor tables S51,270 payments to be made at the end of each period or 17 periods at 9%. Round factor values tos de cima pia ces, e g. Present value 25124 an din a answer to 0 de mar o aces, e-9-45 58. S5 1,270 payable at the end of the seventh, eighth, ninth, and tenth periods at 12%. Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg, 458,581. Present value Click if you would like to Show work for this question: OpenShow work

Explanation / Answer

Present Values are as computed below:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Total 1. Amount Receivable 51,270 51,270 51,270 51,270 51,270 51,270 51,270 51,270 51,270 461430 Rate 12% Present Value factor 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 Present Value   45,777 40,872 36,493 32,583 29,092 25,975 23,192 20,707 18,488 273,179 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Total 2. Payment Done -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -51,270 -871,590 Rate 9% Present Value factor 0.91743 0.84168 0.77218 0.70843 0.64993 0.59627 0.54703 0.50187 0.46043 0.42241 0.38753 0.35553 0.32618 0.29925 0.27454 0.25187 0.23107 Present Value   -47,037 -43,153 -39,590 -36,321 -33,322 -30,571 -28,046 -25,731 -23,606 -21,657 -19,869 -18,228 -16,723 -15,342 -14,076 -12,913 -11,847 -438,032 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total 3.. Payment Done -51,270 -51,270 -51,270 -51,270 -205080 Rate 12% Present Value factor 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 0.32197 Present Value   -23,192 -20,707 -18,488 -16,508 -78,895

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