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Present Value of 1 Future Value of 1 Present Value of an Annuity of 1

question 14

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Present Value of 1
 Periods 3%4%5%6%7%8%9%10%12%30.91510.88900.86380.83960.81630.79380.77220.75130.711840.88850.85480.82270.79210.76290.73500.70840.68300.635550.86260.82190.78350.74730.71300.68060.64990.62090.567460.83750.79030.74620.70500.66630.63020.59630.56450.506670.81310.75990.71070.66510.62270.58350.54700.51320.452380.78940.73070.67680.62740.58200.54030.50190.46650.403990.76640.70260.64460.59190.54390.50020.46040.42410.3606100.74410.67560.61390.55840.50830.46320.42240.38550.3220\begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline \text { Periods } & 3 \% & 4 \% & 5 \% & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% & 12 \% \\\hline 3 & 0.9151 & 0.8890 & 0.8638 & 0.8396 & 0.8163 & 0.7938 & 0.7722 & 0.7513 & 0.7118 \\\hline 4 & 0.8885 & 0.8548 & 0.8227 & 0.7921 & 0.7629 & 0.7350 & 0.7084 & 0.6830 & 0.6355 \\\hline 5 & 0.8626 & 0.8219 & 0.7835 & 0.7473 & 0.7130 & 0.6806 & 0.6499 & 0.6209 & 0.5674 \\\hline 6 & 0.8375 & 0.7903 & 0.7462 & 0.7050 & 0.6663 & 0.6302 & 0.5963 & 0.5645 & 0.5066 \\\hline 7 & 0.8131 & 0.7599 & 0.7107 & 0.6651 & 0.6227 & 0.5835 & 0.5470 & 0.5132 & 0.4523 \\\hline 8 & 0.7894 & 0.7307 & 0.6768 & 0.6274 & 0.5820 & 0.5403 & 0.5019 & 0.4665 & 0.4039 \\\hline 9 & 0.7664 & 0.7026 & 0.6446 & 0.5919 & 0.5439 & 0.5002 & 0.4604 & 0.4241 & 0.3606 \\\hline 10 & 0.7441 & 0.6756 & 0.6139 & 0.5584 & 0.5083 & 0.4632 & 0.4224 & 0.3855 & 0.3220 \\\hline\end{array} Future Value of 1
 Periods 3%4%5%6%7%8%9%10%12%31.09271.12491.15761.19101.22501.25971.29501.33101.404941.12551.16991.21551.26251.31081.36051.41161.46411.573551.15931.21671.27631.33821.40261.46931.53861.61051.762361.19411.26531.34011.41851.50071.58691.67711.77161.973871.22991.31591.40711.50361.60581.71381.82801.94872.210781.26681.36861.47751.59381.71821.85091.99262.14362.476091.30481.42331.55131.68951.83851.99902.17192.35792.7731101.34391.48021.62891.79081.96722.15892.36742.59373.1058\begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline \text { Periods } & 3 \% & 4 \% & 5 \% & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% & 12 \% \\\hline 3 & 1.0927 & 1.1249 & 1.1576 & 1.1910 & 1.2250 & 1.2597 & 1.2950 & 1.3310 & 1.4049 \\\hline 4 & 1.1255 & 1.1699 & 1.2155 & 1.2625 & 1.3108 & 1.3605 & 1.4116 & 1.4641 & 1.5735 \\\hline 5 & 1.1593 & 1.2167 & 1.2763 & 1.3382 & 1.4026 & 1.4693 & 1.5386 & 1.6105 & 1.7623 \\\hline 6 & 1.1941 & 1.2653 & 1.3401 & 1.4185 & 1.5007 & 1.5869 & 1.6771 & 1.7716 & 1.9738 \\\hline 7 & 1.2299 & 1.3159 & 1.4071 & 1.5036 & 1.6058 & 1.7138 & 1.8280 & 1.9487 & 2.2107 \\\hline 8 & 1.2668 & 1.3686 & 1.4775 & 1.5938 & 1.7182 & 1.8509 & 1.9926 & 2.1436 & 2.4760 \\\hline 9 & 1.3048 & 1.4233 & 1.5513 & 1.6895 & 1.8385 & 1.9990 & 2.1719 & 2.3579 & 2.7731 \\\hline 10 & 1.3439 & 1.4802 & 1.6289 & 1.7908 & 1.9672 & 2.1589 & 2.3674 & 2.5937 & 3.1058 \\\hline\end{array} Present Value of an Annuity of 1
 Periods 3%4%5%6%7%8%9%10%12%32.82862.77512.72322.67302.62432.57712.53132.48692.401843.71713.62993.54603.46513.38723.31213.23973.16993.037354.57974.45184.32954.21244.10023.99273.88973.79083.604865.41725.24215.07574.91734.76654.62294.48594.35534.111476.23036.00215.78645.58245.38935.20645.03304.86844.563887.01976.73276.46326.20985.97135.74665.53485.33494.967697.78617.43537.10786.80176.51526.24695.99525.79505.3282108.53028.11097.72177.36017.02366.71016.41776.14465.6502\begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline \text { Periods } & 3 \% & 4 \% & 5 \% & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% & 12 \% \\\hline 3 & 2.8286 & 2.7751 & 2.7232 & 2.6730 & 2.6243 & 2.5771 & 2.5313 & 2.4869 & 2.4018 \\\hline 4 & 3.7171 & 3.6299 & 3.5460 & 3.4651 & 3.3872 & 3.3121 & 3.2397 & 3.1699 & 3.0373 \\\hline 5 & 4.5797 & 4.4518 & 4.3295 & 4.2124 & 4.1002 & 3.9927 & 3.8897 & 3.7908 & 3.6048 \\\hline 6 & 5.4172 & 5.2421 & 5.0757 & 4.9173 & 4.7665 & 4.6229 & 4.4859 & 4.3553 & 4.1114 \\\hline 7 & 6.2303 & 6.0021 & 5.7864 & 5.5824 & 5.3893 & 5.2064 & 5.0330 & 4.8684 & 4.5638 \\\hline 8 & 7.0197 & 6.7327 & 6.4632 & 6.2098 & 5.9713 & 5.7466 & 5.5348 & 5.3349 & 4.9676 \\\hline 9 & 7.7861 & 7.4353 & 7.1078 & 6.8017 & 6.5152 & 6.2469 & 5.9952 & 5.7950 & 5.3282 \\\hline 10 & 8.5302 & 8.1109 & 7.7217 & 7.3601 & 7.0236 & 6.7101 & 6.4177 & 6.1446 & 5.6502 \\\hline\end{array} Future Value of an Annuity of 1
 Periods 3%4%5%6%7%8%9%10%12%33.09093.12163.15253.18363.21493.24643.27813.31003.374444.18364.24654.31014.37464.43994.50614.57314.64104.779355.30915.41635.52565.63715.75075.86665.98476.10516.352866.46846.63306.80196.97537.15337.33597.52337.71568.115277.66257.89838.14208.39388.65408.92289.20049.487210.089088.89239.21429.54919.897510.259810.636611.028511.435912.2997910.159110.582811.026611.491311.978012.487613.021013.579514.77571011.463912.006112.577913.180813.816414.486615.192915.937417.5487\begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline \text { Periods } & 3 \% & 4 \% & 5 \% & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% & 12 \% \\\hline 3 & 3.0909 & 3.1216 & 3.1525 & 3.1836 & 3.2149 & 3.2464 & 3.2781 & 3.3100 & 3.3744 \\\hline 4 & 4.1836 & 4.2465 & 4.3101 & 4.3746 & 4.4399 & 4.5061 & 4.5731 & 4.6410 & 4.7793 \\\hline 5 & 5.3091 & 5.4163 & 5.5256 & 5.6371 & 5.7507 & 5.8666 & 5.9847 & 6.1051 & 6.3528 \\\hline 6 & 6.4684 & 6.6330 & 6.8019 & 6.9753 & 7.1533 & 7.3359 & 7.5233 & 7.7156 & 8.1152 \\\hline 7 & 7.6625 & 7.8983 & 8.1420 & 8.3938 & 8.6540 & 8.9228 & 9.2004 & 9.4872 & 10.0890 \\\hline 8 & 8.8923 & 9.2142 & 9.5491 & 9.8975 & 10.2598 & 10.6366 & 11.0285 & 11.4359 & 12.2997 \\\hline 9 & 10.1591 & 10.5828 & 11.0266 & 11.4913 & 11.9780 & 12.4876 & 13.0210 & 13.5795 & 14.7757 \\\hline 10 & 11.4639 & 12.0061 & 12.5779 & 13.1808 & 13.8164 & 14.4866 & 15.1929 & 15.9374 & 17.5487 \\\hline\end{array} At an annual interest rate of 8% compounded annually,$5,300 will accumulate to a total of $7,210.65 in 5 years.(PV of $1,FV of $1,PVA of $1,and FVA of $1)(Use appropriate factor(s)from the tables provided.)


Definitions:

After-Tax Real Rate

The interest rate after the adjustment for taxes and inflation.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Annual Interest Rate

The interest rate charged by lenders on loans or paid on deposits, standardized as an annual rate.

Rate of Inflation

The Rate of Inflation measures the percentage increase in the general price level of goods and services in an economy over a period of time.

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