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

question 4

True/False

Present Value of 1
$$\begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline \text { Periods } & 3 \% & 4 \% & 5 \% & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% & 12 \% \\\hline 3 & 0.9151 & 0.8890 & 0.8638 & 0.8396 & 0.8163 & 0.7938 & 0.7722 & 0.7513 & 0.7118 \\\hline 4 & 0.8885 & 0.8548 & 0.8227 & 0.7921 & 0.7629 & 0.7350 & 0.7084 & 0.6830 & 0.6355 \\\hline 5 & 0.8626 & 0.8219 & 0.7835 & 0.7473 & 0.7130 & 0.6806 & 0.6499 & 0.6209 & 0.5674 \\\hline 6 & 0.8375 & 0.7903 & 0.7462 & 0.7050 & 0.6663 & 0.6302 & 0.5963 & 0.5645 & 0.5066 \\\hline 7 & 0.8131 & 0.7599 & 0.7107 & 0.6651 & 0.6227 & 0.5835 & 0.5470 & 0.5132 & 0.4523 \\\hline 8 & 0.7894 & 0.7307 & 0.6768 & 0.6274 & 0.5820 & 0.5403 & 0.5019 & 0.4665 & 0.4039 \\\hline 9 & 0.7664 & 0.7026 & 0.6446 & 0.5919 & 0.5439 & 0.5002 & 0.4604 & 0.4241 & 0.3606 \\\hline 10 & 0.7441 & 0.6756 & 0.6139 & 0.5584 & 0.5083 & 0.4632 & 0.4224 & 0.3855 & 0.3220 \\\hline\end{array}$$ Future Value of 1
$$\begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline \text { Periods } & 3 \% & 4 \% & 5 \% & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% & 12 \% \\\hline 3 & 1.0927 & 1.1249 & 1.1576 & 1.1910 & 1.2250 & 1.2597 & 1.2950 & 1.3310 & 1.4049 \\\hline 4 & 1.1255 & 1.1699 & 1.2155 & 1.2625 & 1.3108 & 1.3605 & 1.4116 & 1.4641 & 1.5735 \\\hline 5 & 1.1593 & 1.2167 & 1.2763 & 1.3382 & 1.4026 & 1.4693 & 1.5386 & 1.6105 & 1.7623 \\\hline 6 & 1.1941 & 1.2653 & 1.3401 & 1.4185 & 1.5007 & 1.5869 & 1.6771 & 1.7716 & 1.9738 \\\hline 7 & 1.2299 & 1.3159 & 1.4071 & 1.5036 & 1.6058 & 1.7138 & 1.8280 & 1.9487 & 2.2107 \\\hline 8 & 1.2668 & 1.3686 & 1.4775 & 1.5938 & 1.7182 & 1.8509 & 1.9926 & 2.1436 & 2.4760 \\\hline 9 & 1.3048 & 1.4233 & 1.5513 & 1.6895 & 1.8385 & 1.9990 & 2.1719 & 2.3579 & 2.7731 \\\hline 10 & 1.3439 & 1.4802 & 1.6289 & 1.7908 & 1.9672 & 2.1589 & 2.3674 & 2.5937 & 3.1058 \\\hline\end{array}$$ Present Value of an Annuity of 1
$$\begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline \text { Periods } & 3 \% & 4 \% & 5 \% & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% & 12 \% \\\hline 3 & 2.8286 & 2.7751 & 2.7232 & 2.6730 & 2.6243 & 2.5771 & 2.5313 & 2.4869 & 2.4018 \\\hline 4 & 3.7171 & 3.6299 & 3.5460 & 3.4651 & 3.3872 & 3.3121 & 3.2397 & 3.1699 & 3.0373 \\\hline 5 & 4.5797 & 4.4518 & 4.3295 & 4.2124 & 4.1002 & 3.9927 & 3.8897 & 3.7908 & 3.6048 \\\hline 6 & 5.4172 & 5.2421 & 5.0757 & 4.9173 & 4.7665 & 4.6229 & 4.4859 & 4.3553 & 4.1114 \\\hline 7 & 6.2303 & 6.0021 & 5.7864 & 5.5824 & 5.3893 & 5.2064 & 5.0330 & 4.8684 & 4.5638 \\\hline 8 & 7.0197 & 6.7327 & 6.4632 & 6.2098 & 5.9713 & 5.7466 & 5.5348 & 5.3349 & 4.9676 \\\hline 9 & 7.7861 & 7.4353 & 7.1078 & 6.8017 & 6.5152 & 6.2469 & 5.9952 & 5.7950 & 5.3282 \\\hline 10 & 8.5302 & 8.1109 & 7.7217 & 7.3601 & 7.0236 & 6.7101 & 6.4177 & 6.1446 & 5.6502 \\\hline\end{array}$$ Future Value of an Annuity of 1
$$\begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline \text { Periods } & 3 \% & 4 \% & 5 \% & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% & 12 \% \\\hline 3 & 3.0909 & 3.1216 & 3.1525 & 3.1836 & 3.2149 & 3.2464 & 3.2781 & 3.3100 & 3.3744 \\\hline 4 & 4.1836 & 4.2465 & 4.3101 & 4.3746 & 4.4399 & 4.5061 & 4.5731 & 4.6410 & 4.7793 \\\hline 5 & 5.3091 & 5.4163 & 5.5256 & 5.6371 & 5.7507 & 5.8666 & 5.9847 & 6.1051 & 6.3528 \\\hline 6 & 6.4684 & 6.6330 & 6.8019 & 6.9753 & 7.1533 & 7.3359 & 7.5233 & 7.7156 & 8.1152 \\\hline 7 & 7.6625 & 7.8983 & 8.1420 & 8.3938 & 8.6540 & 8.9228 & 9.2004 & 9.4872 & 10.0890 \\\hline 8 & 8.8923 & 9.2142 & 9.5491 & 9.8975 & 10.2598 & 10.6366 & 11.0285 & 11.4359 & 12.2997 \\\hline 9 & 10.1591 & 10.5828 & 11.0266 & 11.4913 & 11.9780 & 12.4876 & 13.0210 & 13.5795 & 14.7757 \\\hline 10 & 11.4639 & 12.0061 & 12.5779 & 13.1808 & 13.8164 & 14.4866 & 15.1929 & 15.9374 & 17.5487 \\\hline\end{array}$$ The present value of $5,000 per year for three years at 12% compounded annually is $12,009.(PV of $1,FV of $1,PVA of $1,and FVA of $1)(Use appropriate factor(s)from the tables provided.)

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Definitions:

John Kenneth Galbraith

A Canadian-American economist, public official, and diplomat known for his works on consumer behavior, organizational theory, and public policy.

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