Use Table 12-2 from Your Text to Calculate the Present

question 135

Short Answer

Use Table 12-2 from your text to calculate the present value of the annuity due, rounding to the nearest cent: $$\begin{array} { l l l l l l } \text { Annuity } & \text { Payment } & \text { Time } & \text { Nominal } & \text { Interest } & \text { Present Value } \\ \underline { \text { Payments }} & \underline { \text { Frequency} } & \underline { \text { Period }} & \underline { \text { Rate } } & \underline { \text { Compounded} } & \underline { \text { of the Annuity }} \\\$ 10,000 & \text { every year } & 15 \text { years } & 11 \% & \text { annually } &\end{array}$$

---

Definitions:

Accumulated Depletion

The total amount of natural resource extraction that has been charged as an expense against a company's earnings.

Natural Resource

Materials or substances occurring in nature that can be exploited for economic gain, such as minerals, forests, and water.

Balance Sheet

A financial statement summarizing a company's assets, liabilities, and equity at a specific point in time.

Cost Of The Resource

The total financial investment required to acquire, maintain, and operate a resource over its useful life.