final exam 422/acc

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  • FUTURE VALUE OF 1 TABLE. Contains the amounts to which 1 will accumulate if deposited now at a specified rate and left for a specified number of periods (Table 6.1).
    Table6.1FUTURE VALUE OF 1 (FUTURE VALUE OF A SINGLE SUM)
    FVFn,i=(1+i)n
    (n) Periods
    2%
    2½%
    3%
    4%
    5%
    6%
     1
    1.02000
    1.02500
    1.03000
    1.04000
    1.05000
    1.06000
     2
    1.04040
    1.05063
    1.06090
    1.08160
    1.10250
    1.12360
     3
    1.06121
    1.07689
    1.09273
    1.12486
    1.15763
    1.19102
     4
    1.08243
    1.10381
    1.12551
    1.16986
    1.21551
    1.26248
     5
    1.10408
    1.13141
    1.15927
    1.21665
    1.27628
    1.33823
     6
    1.12616
    1.15969
    1.19405
    1.26532
    1.34010
    1.41852
     7
    1.14869
    1.18869
    1.22987
    1.31593
    1.40710
    1.50363
     8
    1.17166
    1.21840
    1.26677
    1.36857
    1.47746
    1.59385
     9
    1.19509
    1.24886
    1.30477
    1.42331
    1.55133
    1.68948
    10
    1.21899
    1.28008
    1.34392
    1.48024
    1.62889
    1.79085
    11
    1.24337
    1.31209
    1.38423
    1.53945
    1.71034
    1.89830
    12
    1.26824
    1.34489
    1.42576
    1.60103
    1.79586
    2.01220
    13
    1.29361
    1.37851
    1.46853
    1.66507
    1.88565
    2.13293
    14
    1.31948
    1.41297
    1.51259
    1.73168
    1.97993
    2.26090
    15
    1.34587
    1.44830
    1.55797
    1.80094
    2.07893
    2.39656
    16
    1.37279
    1.48451
    1.60471
    1.87298
    2.18287
    2.54035
    17
    1.40024
    1.52162
    1.65285
    1.94790
    2.29202
    2.69277
    18
    1.42825
    1.55966
    1.70243
    2.02582
    2.40662
    2.85434
    19
    1.45681
    1.59865
    1.75351
    2.10685
    2.52695
    3.02560
    20
    1.48595
    1.63862
    1.80611
    2.19112
    2.65330
    3.20714
    21
    1.51567
    1.67958
    1.86029
    2.27877
    2.78596
    3.39956
    22
    1.54598
    1.72157
    1.91610
    2.36992
    2.92526
    3.60354
    23
    1.57690
    1.76461
    1.97359
    2.46472
    3.07152
    3.81975
    24
    1.60844
    1.80873
    2.03279
    2.56330
    3.22510
    4.04893
    25
    1.64061
    1.85394
    2.09378
    2.66584
    3.38635
    4.29187
    26
    1.67342
    1.90029
    2.15659
    2.77247
    3.55567
    4.54938
    27
    1.70689
    1.94780
    2.22129
    2.88337
    3.73346
    4.82235
    28
    1.74102
    1.99650
    2.28793
    2.99870
    3.92013
    5.11169
    29
    1.77584
    2.04641
    2.35657
    3.11865
    4.11614
    5.41839
    30
    1.81136
    2.09757
    2.42726
    3.24340
    4.32194
    5.74349
    31
    1.84759
    2.15001
    2.50008
    3.37313
    4.53804
    6.08810
    32
    1.88454
    2.20376
    2.57508
    3.50806
    4.76494
    6.45339
    33
    1.92223
    2.25885
    2.65234
    3.64838
    5.00319
    6.84059
    34
    1.96068
    2.31532
    2.73191
    3.79432
    5.25335
    7.25103
    35
    1.99989
    2.37321
    2.81386
    3.94609
    5.51602
    7.68609
    36
    2.03989
    2.43254
    2.89828
    4.10393
    5.79182
    8.14725
    37
    2.08069
    2.49335
    2.98523
    4.26809
    6.08141
    8.63609
    38
    2.12230
    2.55568
    3.07478
    4.43881
    6.38548
    9.15425
    39
    2.16474
    2.61957
    3.16703
    4.61637
    6.70475
    9.70351
    40
    2.20804
    2.68506
    3.26204
    4.80102
    7.03999
    10.28572
    8%
    9%
    10%
    11%
    12%
    15%
    (n) Periods
    1.08000
    1.09000
    1.10000
    1.11000
    1.12000
    1.15000
     1
    1.16640
    1.18810
    1.21000
    1.23210
    1.25440
    1.32250
     2
    1.25971
    1.29503
    1.33100
    1.36763
    1.40493
    1.52088
     3
    1.36049
    1.41158
    1.46410
    1.51807
    1.57352
    1.74901
     4
    1.46933
    1.53862
    1.61051
    1.68506
    1.76234
    2.01136
     5
    1.58687
    1.67710
    1.77156
    1.87041
    1.97382
    2.31306
     6
    1.71382
    1.82804
    1.94872
    2.07616
    2.21068
    2.66002
     7
    1.85093
    1.99256
    2.14359
    2.30454
    2.47596
    3.05902
     8
    1.99900
    2.17189
    2.35795
    2.55803
    2.77308
    3.51788
     9
    2.15892
    2.36736
    2.59374
    2.83942
    3.10585
    4.04556
    10
    2.33164
    2.58043
    2.85312
    3.15176
    3.47855
    4.65239
    11
    2.51817
    2.81267
    3.13843
    3.49845
    3.89598
    5.35025
    12
    2.71962
    3.06581
    3.45227
    3.88328
    4.36349
    6.15279
    13
    2.93719
    3.34173
    3.79750
    4.31044
    4.88711
    7.07571
    14
    3.17217
    3.64248
    4.17725
    4.78459
    5.47357
    8.13706
    15
    3.42594
    3.97031
    4.59497
    5.31089
    6.13039
    9.35762
    16
    3.70002
    4.32763
    5.05447
    5.89509
    6.86604
    10.76126
    17
    3.99602
    4.71712
    5.55992
    6.54355
    7.68997
    12.37545
    18
    4.31570
    5.14166
    6.11591
    7.26334
    8.61276
    14.23177
    19
    4.66096
    5.60441
    6.72750
    8.06231
    9.64629
    16.36654
    20
    5.03383
    6.10881
    7.40025
    8.94917
    10.80385
    18.82152
    21
    5.43654
    6.65860
    8.14028
    9.93357
    12.10031
    21.64475
    22
    5.87146
    7.25787
    8.95430
    11.02627
    13.55235
    24.89146
    23
    6.34118
    7.91108
    9.84973
    12.23916
    15.17863
    28.62518
    24
    6.84847
    8.62308
    10.83471
    13.58546
    17.00000
    32.91895
    25
    7.39635
    9.39916
    11.91818
    15.07986
    19.04007
    37.85680
    26
    7.98806
    10.24508
    13.10999
    16.73865
    21.32488
    43.53532
    27
    8.62711
    11.16714
    14.42099
    18.57990
    23.88387
    50.06561
    28
    9.31727
    12.17218
    15.86309
    20.62369
    26.74993
    57.57545
    29
    10.06266
    13.26768
    17.44940
    22.89230
    29.95992
    66.21177
    30
    10.86767
    14.46177
    19.19434
    25.41045
    33.55511
    76.14354
    31
    11.73708
    15.76333
    21.11378
    28.20560
    37.58173
    87.56507
    32
    12.67605
    17.18203
    23.22515
    31.30821
    42.09153
    100.69983
    33
    13.69013
    18.72841
    25.54767
    34.75212
    47.14252
    115.80480
    34
    14.78534
    20.41397
    28.10244
    38.57485
    52.79962
    133.17552
    35
    15.96817
    22.25123
    30.91268
    42.81808
    59.13557
    153.15185
    36
    17.24563
    24.25384
    34.00395
    47.52807
    66.23184
    176.12463
    37
    18.62528
    26.43668
    37.40434
    52.75616
    74.17966
    202.54332
    38
    20.11530
    28.81598
    41.14479
    58.55934
    83.08122
    232.92482
    39
    21.72452
    31.40942
    45.25926
    65.00087
    93.05097
    267.86355
    40
  • 2.PRESENT VALUE OF 1 TABLE. Contains the amounts that must be deposited now at a specified rate of interest to equal 1 at the end of a specified number of periods (Table 6.2).
    Table6.2PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM)
    PVFn,i=1(1+i)n=(1+i)−n
    (n) Periods
    2%
    2½%
    3%
    4%
    5%
    6%
     1
    .98039
    .97561
    .97087
    .96154
    .95238
    .94340
     2
    .96117
    .95181
    .94260
    .92456
    .90703
    .89000
     3
    .94232
    .92860
    .91514
    .88900
    .86384
    .83962
     4
    .92385
    .90595
    .88849
    .85480
    .82270
    .79209
     5
    .90573
    .88385
    .86261
    .82193
    .78353
    .74726
     6
    .88797
    .86230
    .83748
    .79031
    .74622
    .70496
     7
    .87056
    .84127
    .81309
    .75992
    .71068
    .66506
     8
    .85349
    .82075
    .78941
    .73069
    .67684
    .62741
     9
    .83676
    .80073
    .76642
    .70259
    .64461
    .59190
    10
    .82035
    .78120
    .74409
    .67556
    .61391
    .55839
    11
    .80426
    .76214
    .72242
    .64958
    .58468
    .52679
    12
    .78849
    .74356
    .70138
    .62460
    .55684
    .49697
    13
    .77303
    .72542
    .68095
    .60057
    .53032
    .46884
    14
    .75788
    .70773
    .66112
    .57748
    .50507
    .44230
    15
    .74301
    .69047
    .64186
    .55526
    .48102
    .41727
    16
    .72845
    .67362
    .62317
    .53391
    .45811
    .39365
    17
    .71416
    .65720
    .60502
    .51337
    .43630
    .37136
    18
    .70016
    .64117
    .58739
    .49363
    .41552
    .35034
    19
    .68643
    .62553
    .57029
    .47464
    .39573
    .33051
    20
    .67297
    .61027
    .55368
    .45639
    .37689
    .31180
    21
    .65978
    .59539
    .53755
    .43883
    .35894
    .29416
    22
    .64684
    .58086
    .52189
    .42196
    .34185
    .27751
    23
    .63416
    .56670
    .50669
    .40573
    .32557
    .26180
    24
    .62172
    .55288
    .49193
    .39012
    .31007
    .24698
    25
    .60953
    .53939
    .47761
    .37512
    .29530
    .23300
    26
    .59758
    .52623
    .46369
    .36069
    .28124
    .21981
    27
    .58586
    .51340
    .45019
    .34682
    .26785
    .20737
    28
    .57437
    .50088
    .43708
    .33348
    .25509
    .19563
    29
    .56311
    .48866
    .42435
    .32065
    .24295
    .18456
    30
    .55207
    .47674
    .41199
    .30832
    .23138
    .17411
    31
    .54125
    .46511
    .39999
    .29646
    .22036
    .16425
    32
    .53063
    .45377
    .38834
    .28506
    .20987
    .15496
    33
    .52023
    .44270
    .37703
    .27409
    .19987
    .14619
    34
    .51003
    .43191
    .36604
    .26355
    .19035
    .13791
    35
    .50003
    .42137
    .35538
    .25342
    .18129
    .13011
    36
    .49022
    .41109
    .34503
    .24367
    .17266
    .12274
    37
    .48061
    .40107
    .33498
    .23430
    .16444
    .11579
    38
    .47119
    .39128
    .32523
    .22529
    .15661
    .10924
    39
    .46195
    .38174
    .31575
    .21662
    .14915
    .10306
    40
    .45289
    .37243
    .30656
    .20829
    .14205
    .09722
    8%
    9%
    10%
    11%
    12%
    15%
    (n) Periods
    .92593
    .91743
    .90909
    .90090
    .89286
    .86957
     1
    .85734
    .84168
    .82645
    .81162
    .79719
    .75614
     2
    .79383
    .77218
    .75132
    .73119
    .71178
    .65752
     3
    .73503
    .70843
    .68301
    .65873
    .63552
    .57175
     4
    .68058
    .64993
    .62092
    .59345
    .56743
    .49718
     5
    .63017
    .59627
    .56447
    .53464
    .50663
    .43233
     6
    .58349
    .54703
    .51316
    .48166
    .45235
    .37594
     7
    .54027
    .50187
    .46651
    .43393
    .40388
    .32690
     8
    .50025
    .46043
    .42410
    .39092
    .36061
    .28426
     9
    .46319
    .42241
    .38554
    .35218
    .32197
    .24719
    10
    .42888
    .38753
    .35049
    .31728
    .28748
    .21494
    11
    .39711
    .35554
    .31863
    .28584
    .25668
    .18691
    12
    .36770
    .32618
    .28966
    .25751
    .22917
    .16253
    13
    .34046
    .29925
    .26333
    .23199
    .20462
    .14133
    14
    .31524
    .27454
    .23939
    .20900
    .18270
    .12289
    15
    .29189
    .25187
    .21763
    .18829
    .16312
    .10687
    16
    .27027
    .23107
    .19785
    .16963
    .14564
    .09293
    17
    .25025
    .21199
    .17986
    .15282
    .13004
    .08081
    18
    .23171
    .19449
    .16351
    .13768
    .11611
    .07027
    19
    .21455
    .17843
    .14864
    .12403
    .10367
    .06110
    20
    .19866
    .16370
    .13513
    .11174
    .09256
    .05313
    21
    .18394
    .15018
    .12285
    .10067
    .08264
    .04620
    22
    .17032
    .13778
    .11168
    .09069
    .07379
    .04017
    23
    .15770
    .12641
    .10153
    .08170
    .06588
    .03493
    24
    .14602
    .11597
    .09230
    .07361
    .05882
    .03038
    25
    .13520
    .10639
    .08391
    .06631
    .05252
    .02642
    26
    .12519
    .09761
    .07628
    .05974
    .04689
    .02297
    27
    .11591
    .08955
    .06934
    .05382
    .04187
    .01997
    28
    .10733
    .08216
    .06304
    .04849
    .03738
    .01737
    29
    .09938
    .07537
    .05731
    .04368
    .03338
    .01510
    30
    .09202
    .06915
    .05210
    .03935
    .02980
    .01313
    31
    .08520
    .06344
    .04736
    .03545
    .02661
    .01142
    32
    .07889
    .05820
    .04306
    .03194
    .02376
    .00993
    33
    .07305
    .05340
    .03914
    .02878
    .02121
    .00864
    34
    .06763
    .04899
    .03558
    .02592
    .01894
    .00751
    35
    .06262
    .04494
    .03235
    .02335
    .01691
    .00653
    36
    .05799
    .04123
    .02941
    .02104
    .01510
    .00568
    37
    .05369
    .03783
    .02674
    .01896
    .01348
    .00494
    38
    .04971
    .03470
    .02430
    .01708
    .01204
    .00429
    39
    .04603
    .03184
    .02210
    .01538
    .01075
    .00373
    40
  • 3.FUTURE VALUE OF AN ORDINARY ANNUITY OF 1 TABLE. Contains the amounts to which periodic rents of 1 will accumulate if the payments (rents) are invested at the end of each period at a specified rate of interest for a specified number of periods (Table 6.3).
    Table6.3FUTURE VALUE OF AN ORDINARY ANNUITY OF 1
    FVF-OAn,i=(1+i)n−1i
    (n) Periods
    2%
    2½%
    3%
    4%
    5%
    6%
     1
    1.00000
    1.00000
    1.00000
    1.00000
    1.00000
    1.00000
     2
    2.02000
    2.02500
    2.03000
    2.04000
    2.05000
    2.06000
     3
    3.06040
    3.07563
    3.09090
    3.12160
    3.15250
    3.18360
     4
    4.12161
    4.15252
    4.18363
    4.24646
    4.31013
    4.37462
     5
    5.20404
    5.25633
    5.30914
    5.41632
    5.52563
    5.63709
     6
    6.30812
    6.38774
    6.46841
    6.63298
    6.80191
    6.97532
     7
    7.43428
    7.54743
    7.66246
    7.89829
    8.14201
    8.39384
     8
    8.58297
    8.73612
    8.89234
    9.21423
    9.54911
    9.89747
     9
    9.75463
    9.95452
    10.15911
    10.58280
    11.02656
    11.49132
    10
    10.94972
    11.20338
    11.46338
    12.00611
    12.57789
    13.18079
    11
    12.16872
    12.48347
    12.80780
    13.48635
    14.20679
    14.97164
    12
    13.41209
    13.79555
    14.19203
    15.02581
    15.91713
    16.86994
    13
    14.68033
    15.14044
    15.61779
    16.62684
    17.71298
    18.88214
    14
    15.97394
    16.51895
    17.08632
    18.29191
    19.59863
    21.01507
    15
    17.29342
    17.93193
    18.59891
    20.02359
    21.57856
    23.27597
    16
    18.63929
    19.38022
    20.15688
    21.82453
    23.65749
    25.67253
    17
    20.01207
    20.86473
    21.76159
    23.69751
    25.84037
    28.21288
    18
    21.41231
    22.38635
    23.41444
    25.64541
    28.13238
    30.90565
    19
    22.84056
    23.94601
    25.11687
    27.67123
    30.53900
    33.75999
    20
    24.29737
    25.54466
    26.87037
    29.77808
    33.06595
    36.78559
    21
    25.78332
    27.18327
    28.67649
    31.96920
    35.71925
    39.99273
    22
    27.29898
    28.86286
    30.53678
    34.24797
    38.50521
    43.39229
    23
    28.84496
    30.58443
    32.45288
    36.61789
    41.43048
    46.99583
    24
    30.42186
    32.34904
    34.42647
    39.08260
    44.50200
    50.81558
    25
    32.03030
    34.15776
    36.45926
    41.64591
    47.72710
    54.86451
    26
    33.67091
    36.01171
    38.55304
    44.31174
    51.11345
    59.15638
    27
    35.34432
    37.91200
    40.70963
    47.08421
    54.66913
    63.70577
    28
    37.05121
    39.85980
    42.93092
    49.96758
    58.40258
    68.52811
    29
    38.79223
    41.85630
    45.21885
    52.96629
    62.32271
    73.63980
    30
    40.56808
    43.90270
    47.57542
    56.08494
    66.43885
    79.05819
    31
    42.37944
    46.00027
    50.00268
    59.32834
    70.76079
    84.80168
    32
    44.22703
    48.15028
    52.50276
    62.70147
    75.29883
    90.88978
    33
    46.11157
    50.35403
    55.07784
    66.20953
    80.06377
    97.34316
    34
    48.03380
    52.61289
    57.73018
    69.85791
    85.06696
    104.18376
    35
    49.99448
    54.92821
    60.46208
    73.65222
    90.32031
    111.43478
    36
    51.99437
    57.30141
    63.27594
    77.59831
    95.83632
    119.12087
    37
    54.03425
    59.73395
    66.17422
    81.70225
    101.62814
    127.26812
    38
    56.11494
    62.22730
    69.15945
    85.97034
    107.70955
    135.90421
    39
    58.23724
    64.78298
    72.23423
    90.40915
    114.09502
    145.05846
    40
    60.40198
    67.40255
    75.40126
    95.02552
    120.79977
    154.76197
    8%
    9%
    10%
    11%
    12%
    15%
    (n) Periods
    1.00000
    1.00000
    1.00000
    1.00000
    1.00000
    1.00000
     1
    2.08000
    2.09000
    2.10000
    2.11000
    2.12000
    2.15000
     2
    3.24640
    3.27810
    3.31000
    3.34210
    3.37440
    3.47250
     3
    4.50611
    4.57313
    4.64100
    4.70973
    4.77933
    4.99338
     4
    5.86660
    5.98471
    6.10510
    6.22780
    6.35285
    6.74238
     5
    7.33592
    7.52334
    7.71561
    7.91286
    8.11519
    8.75374
     6
    8.92280
    9.20044
    9.48717
    9.78327
    10.08901
    11.06680
     7
    10.63663
    11.02847
    11.43589
    11.85943
    12.29969
    13.72682
     8
    12.48756
    13.02104
    13.57948
    14.16397
    14.77566
    16.78584
     9
    14.48656
    15.19293
    15.93743
    16.72201
    17.54874
    20.30372
    10
    16.64549
    17.56029
    18.53117
    19.56143
    20.65458
    24.34928
    11
    18.97713
    20.14072
    21.38428
    22.71319
    24.13313
    29.00167
    12
    21.49530
    22.95339
    24.52271
    26.21164
    28.02911
    34.35192
    13
    24.21492
    26.01919
    27.97498
    30.09492
    32.39260
    40.50471
    14
    27.15211
    29.36092
    31.77248
    34.40536
    37.27972
    47.58041
    15
    30.32428
    33.00340
    35.94973
    39.18995
    42.75328
    55.71747
    16
    33.75023
    36.97371
    40.54470
    44.50084
    48.88367
    65.07509
    17
    37.45024
    41.30134
    45.59917
    50.39593
    55.74972
    75.83636
    18
    41.44626
    46.01846
    51.15909
    56.93949
    63.43968
    88.21181
    19
    45.76196
    51.16012
    57.27500
    64.20283
    72.05244
    102.44358
    20
    50.42292
    56.76453
    64.00250
    72.26514
    81.69874
    118.81012
    21
    55.45676
    62.87334
    71.40275
    81.21431
    92.50258
    137.63164
    22
    60.89330
    69.53194
    79.54302
    91.14788
    104.60289
    159.27638
    23
    66.76476
    76.78981
    88.49733
    102.17415
    118.15524
    184.16784
    24
    73.10594
    84.70090
    98.34706
    114.41331
    133.33387
    212.79302
    25
    79.95442
    93.32398
    109.18177
    127.99877
    150.33393
    245.71197
    26
    87.35077
    102.72314
    121.09994
    143.07864
    169.37401
    283.56877
    27
    95.33883
    112.96822
    134.20994
    159.81729
    190.69889
    327.10408
    28
    103.96594
    124.13536
    148.63093
    178.39719
    214.58275
    377.16969
    29
    113.28321
    136.30754
    164.49402
    199.02088
    241.33268
    434.74515
    30
    123.34587
    149.57522
    181.94343
    221.91317
    271.29261
    500.95692
    31
    134.21354
    164.03699
    201.13777
    247.32362
    304.84772
    577.10046
    32
    145.95062
    179.80032
    222.25154
    275.52922
    342.42945
    644.66553
    33
    158.62667
    196.98234
    245.47670
    306.83744
    384.52098
    765.36535
    34
    172.31680
    215.71076
    271.02437
    341.58955
    431.66350
    881.17016
    35
    187.10215
    236.12472
    299.12681
    380.16441
    484.46312
    1014.34568
    36
    203.07032
    258.37595
    330.03949
    422.98249
    543.59869
    1167.49753
    37
    220.31595
    282.62978
    364.04343
    470.51056
    609.83053
    1343.62216
    38
    238.94122
    309.06646
    401.44778
    523.26673
    684.01020
    1546.16549
    39
    259.05652
    337.88245
    442.59256
    581.82607
    767.09142
    1779.09031
    40
  • 4.PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 TABLE. Contains the amounts that must be deposited now at a specified rate of interest to permit withdrawals of 1 at the end of regular periodic intervals for the specified number of periods (Table 6.4).
    Table6.4PRESENT VALUE OF AN ORDINARY ANNUITY OF 1
    PVF-OAn,i=1−1(1+i)ni
    (n) Periods
    2%
    2½%
    3%
    4%
    5%
    6%
     1
    .98039
    .97561
    .97087
    .96154
    .95238
    .94340
     2
    1.94156
    1.92742
    1.91347
    1.88609
    1.85941
    1.83339
     3
    2.88388
    2.85602
    2.82861
    2.77509
    2.72325
    2.67301
     4
    3.80773
    3.76197
    3.71710
    3.62990
    3.54595
    3.46511
     5
    4.71346
    4.64583
    4.57971
    4.45182
    4.32948
    4.21236
     6
    5.60143
    5.50813
    5.41719
    5.24214
    5.07569
    4.91732
     7
    6.47199
    6.34939
    6.23028
    6.00205
    5.78637
    5.58238
     8
    7.32548
    7.17014
    7.01969
    6.73274
    6.46321
    6.20979
     9
    8.16224
    7.97087
    7.78611
    7.43533
    7.10782
    6.80169
    10
    8.98259
    8.75206
    8.53020
    8.11090
    7.72173
    7.36009
    11
    9.78685
    9.51421
    9.25262
    8.76048
    8.30641
    7.88687
    12
    10.57534
    10.25776
    9.95400
    9.38507
    8.86325
    8.38384
    13
    11.34837
    10.98319
    10.63496
    9.98565
    9.39357
    8.85268
    14
    12.10625
    11.69091
    11.29607
    10.56312
    9.89864
    9.29498
    15
    12.84926
    12.38138
    11.93794
    11.11839
    10.37966
    9.71225
    16
    13.57771
    13.05500
    12.56110
    11.65230
    10.83777
    10.10590
    17
    14.29187
    13.71220
    13.16612
    12.16567
    11.27407
    10.47726
    18
    14.99203
    14.35336
    13.75351
    12.65930
    11.68959
    10.82760
    19
    15.67846
    14.97889
    14.32380
    13.13394
    12.08532
    11.15812
    20
    16.35143
    15.58916
    14.87747
    13.59033
    12.46221
    11.46992
    21
    17.01121
    16.18455
    15.41502
    14.02916
    12.82115
    11.76408
    22
    17.65805
    16.76541
    15.93692
    14.45112
    13.16300
    12.04158
    23
    18.29220
    17.33211
    16.44361
    14.85684
    13.48857
    12.30338
    24
    18.91393
    17.88499
    16.93554
    15.24696
    13.79864
    12.55036
    25
    19.52346
    18.42438
    17.41315
    15.62208
    14.09394
    12.78336
    26
    20.12104
    18.95061
    17.87684
    15.98277
    14.37519
    13.00317
    27
    20.70690
    19.46401
    18.32703
    16.32959
    14.64303
    13.21053
    28
    21.28127
    19.96489
    18.76411
    16.66306
    14.89813
    13.40616
    29
    21.84438
    20.45355
    19.18845
    16.98371
    15.14107
    13.59072
    30
    22.39646
    20.93029
    19.60044
    17.29203
    15.37245
    13.76483
    31
    22.93770
    21.39541
    20.00043
    17.58849
    15.59281
    13.92909
    32
    23.46833
    21.84918
    20.38877
    17.87355
    15.80268
    14.08404
    33
    23.98856
    22.29188
    20.76579
    18.14765
    16.00255
    14.23023
    34
    24.49859
    22.72379
    21.13184
    18.41120
    16.19290
    14.36814
    35
    24.99862
    23.14516
    21.48722
    18.66461
    16.37419
    14.49825
    36
    25.48884
    23.55625
    21.83225
    18.90828
    16.54685
    14.62099
    37
    25.96945
    23.95732
    22.16724
    19.14258
    16.71129
    14.73678
    38
    26.44064
    24.34860
    22.49246
    19.36786
    16.86789
    14.84602
    39
    26.90259
    24.73034
    22.80822
    19.58448
    17.01704
    14.94907
    40
    27.35548
    25.10278
    23.11477
    19.79277
    17.15909
    15.04630
    8%
    9%
    10%
    11%
    12%
    15%
    (n) Periods
    .92593
    .91743
    .90909
    .90090
    .89286
    .86957
     1
    1.78326
    1.75911
    1.73554
    1.71252
    1.69005
    1.62571
     2
    2.57710
    2.53130
    2.48685
    2.44371
    2.40183
    2.28323
     3
    3.31213
    3.23972
    3.16986
    3.10245
    3.03735
    2.85498
     4
    3.99271
    3.88965
    3.79079
    3.69590
    3.60478
    3.35216
     5
    4.62288
    4.48592
    4.35526
    4.23054
    4.11141
    3.78448
     6
    5.20637
    5.03295
    4.86842
    4.71220
    4.56376
    4.16042
     7
    5.74664
    5.53482
    5.33493
    5.14612
    4.96764
    4.48732
     8
    6.24689
    5.99525
    5.75902
    5.53705
    5.32825
    4.77158
     9
    6.71008
    6.41766
    6.14457
    5.88923
    5.65022
    5.01877
    10
    7.13896
    6.80519
    6.49506
    6.20652
    5.93770
    5.23371
    11
    7.53608
    7.16073
    6.81369
    6.49236
    6.19437
    5.42062
    12
    7.90378
    7.48690
    7.10336
    6.74987
    6.42355
    5.58315
    13
    8.24424
    7.78615
    7.36669
    6.98187
    6.62817
    5.72448
    14
    8.55948
    8.06069
    7.60608
    7.19087
    6.81086
    5.84737
    15
    8.85137
    8.31256
    7.82371
    7.37916
    6.97399
    5.95424
    16
    9.12164
    8.54363
    8.02155
    7.54879
    7.11963
    6.04716
    17
    9.37189
    8.75563
    8.20141
    7.70162
    7.24967
    6.12797
    18
    9.60360
    8.95012
    8.36492
    7.83929
    7.36578
    6.19823
    19
    9.81815
    9.12855
    8.51356
    7.96333
    7.46944
    6.25933
    20
    10.01680
    9.29224
    8.64869
    8.07507
    7.56200
    6.31246
    21
    10.20074
    9.44243
    8.77154
    8.17574
    7.64465
    6.35866
    22
    10.37106
    9.58021
    8.88322
    8.26643
    7.71843
    6.39884
    23
    10.52876
    9.70661
    8.98474
    8.34814
    7.78432
    6.43377
    24
    10.67478
    9.82258
    9.07704
    8.42174
    7.84314
    6.46415
    25
    10.80998
    9.92897
    9.16095
    8.48806
    7.89566
    6.49056
    26
    10.93516
    10.02658
    9.23722
    8.54780
    7.94255
    6.51353
    27
    11.05108
    10.11613
    9.30657
    8.60162
    7.98442
    6.53351
    28
    11.15841
    10.19828
    9.36961
    8.65011
    8.02181
    6.55088
    29
    11.25778
    10.27365
    9.42691
    8.69379
    8.05518
    6.56598
    30
    11.34980
    10.34280
    9.47901
    8.73315
    8.08499
    6.57911
    31
    11.43500
    10.40624
    9.52638
    8.76860
    8.11159
    6.59053
    32
    11.51389
    10.46444
    9.56943
    8.80054
    8.13535
    6.60046
    33
    11.58693
    10.51784
    9.60858
    8.82932
    8.15656
    6.60910
    34
    11.65457
    10.56682
    9.64416
    8.85524
    8.17550
    6.61661
    35
    11.71719
    10.61176
    9.67651
    8.87859
    8.19241
    6.62314
    36
    11.77518
    10.65299
    9.70592
    8.89963
    8.20751
    6.62882
    37
    11.82887
    10.69082
    9.73265
    8.91859
    8.22099
    6.63375
    38
    11.87858
    10.72552
    9.75697
    8.93567
    8.23303
    6.63805
    39
    11.92461
    10.75736
    9.77905
    8.95105
    8.24378
    6.64178
    40
  • 5.PRESENT VALUE OF AN ANNUITY DUE OF 1 TABLE. Contains the amounts that must be deposited now at a specified rate of interest to permit withdrawals of 1 at the beginning of regular periodic intervals for the specified number of periods (Table 6.5).
    Table6.5PRESENT VALUE OF AN ANNUITY DUE OF 1
    PVF-ADn,i=1+1−1(1+i)n−1i
    (n) Periods
    2%
    2½%
    3%
    4%
    5%
    6%
     1
    1.00000
    1.00000
    1.00000
    1.00000
    1.00000
    1.00000
     2
    1.98039
    1.97561
    1.97087
    1.96154
    1.95238
    1.94340
     3
    2.94156
    2.92742
    2.91347
    2.88609
    2.85941
    2.83339
     4
    3.88388
    3.85602
    3.82861
    3.77509
    3.72325
    3.67301
     5
    4.80773
    4.76197
    4.71710
    4.62990
    4.54595
    4.46511
     6
    5.71346
    5.64583
    5.57971
    5.45182
    5.32948
    5.21236
     7
    6.60143
    6.50813
    6.41719
    6.24214
    6.07569
    5.91732
     8
    7.47199
    7.34939
    7.23028
    7.00205
    6.78637
    6.58238
     9
    8.32548
    8.17014
    8.01969
    7.73274
    7.46321
    7.20979
    10
    9.16224
    8.97087
    8.78611
    8.43533
    8.10782
    7.80169
    11
    9.98259
    9.75206
    9.53020
    9.11090
    8.72173
    8.36009
    12
    10.78685
    10.51421
    10.25262
    9.76048
    9.30641
    8.88687
    13
    11.57534
    11.25776
    10.95400
    10.38507
    9.86325
    9.38384
    14
    12.34837
    11.98319
    11.63496
    10.98565
    10.39357
    9.85268
    15
    13.10625
    12.69091
    12.29607
    11.56312
    10.89864
    10.29498
    16
    13.84926
    13.38138
    12.93794
    12.11839
    11.37966
    10.71225
    17
    14.57771
    14.05500
    13.56110
    12.65230
    11.83777
    11.10590
    18
    15.29187
    14.71220
    14.16612
    13.16567
    12.27407
    11.47726
    19
    15.99203
    15.35336
    14.75351
    13.65930
    12.68959
    11.82760
    20
    16.67846
    15.97889
    15.32380
    14.13394
    13.08532
    12.15812
    21
    17.35143
    16.58916
    15.87747
    14.59033
    13.46221
    12.46992
    22
    18.01121
    17.18455
    16.41502
    15.02916
    13.82115
    12.76408
    23
    18.65805
    17.76541
    16.93692
    15.45112
    14.16300
    13.04158
    24
    19.29220
    18.33211
    17.44361
    15.85684
    14.48857
    13.30338
    25
    19.91393
    18.88499
    17.93554
    16.24696
    14.79864
    13.55036
    26
    20.52346
    19.42438
    18.41315
    16.62208
    15.09394
    13.78336
    27
    21.12104
    19.95061
    18.87684
    16.98277
    15.37519
    14.00317
    28
    21.70690
    20.46401
    19.32703
    17.32959
    15.64303
    14.21053
    29
    22.28127
    20.96489
    19.76411
    17.66306
    15.89813
    14.40616
    30
    22.84438
    21.45355
    20.18845
    17.98371
    16.14107
    14.59072
    31
    23.39646
    21.93029
    20.60044
    18.29203
    16.37245
    14.76483
    32
    23.93770
    22.39541
    21.00043
    18.58849
    16.59281
    14.92909
    33
    24.46833
    22.84918
    21.38877
    18.87355
    16.80268
    15.08404
    34
    24.98856
    23.29188
    21.76579
    19.14765
    17.00255
    15.23023
    35
    25.49859
    23.72379
    22.13184
    19.41120
    17.19290
    15.36814
    36
    25.99862
    24.14516
    22.48722
    19.66461
    17.37419
    15.49825
    37
    26.48884
    24.55625
    22.83225
    19.90828
    17.54685
    15.62099
    38
    26.96945
    24.95732
    23.16724
    20.14258
    17.71129
    15.73678
    39
    27.44064
    25.34860
    23.49246
    20.36786
    17.86789
    15.84602
    40
    27.90259
    25.73034
    23.80822
    20.58448
    18.01704
    15.94907
    8%
    9%
    10%
    11%
    12%
    15%
    (n) Periods
    1.00000
    1.00000
    1.00000
    1.00000
    1.00000
    1.00000
     1
    1.92593
    1.91743
    1.90909
    1.90090
    1.89286
    1.86957
     2
    2.78326
    2.75911
    2.73554
    2.71252
    2.69005
    2.62571
     3
    3.57710
    3.53130
    3.48685
    3.44371
    3.40183
    3.28323
     4
    4.31213
    4.23972
    4.16986
    4.10245
    4.03735
    3.85498
     5
    4.99271
    4.88965
    4.79079
    4.69590
    4.60478
    4.35216
     6
    5.62288
    5.48592
    5.35526
    5.23054
    5.11141
    4.78448
     7
    6.20637
    6.03295
    5.86842
    5.71220
    5.56376
    5.16042
     8
    6.74664
    6.53482
    6.33493
    6.14612
    5.96764
    5.48732
     9
    7.24689
    6.99525
    6.75902
    6.53705
    6.32825
    5.77158
    10
    7.71008
    7.41766
    7.14457
    6.88923
    6.65022
    6.01877
    11
    8.13896
    7.80519
    7.49506
    7.20652
    6.93770
    6.23371
    12
    8.53608
    8.16073
    7.81369
    7.49236
    7.19437
    6.42062
    13
    8.90378
    8.48690
    8.10336
    7.74987
    7.42355
    6.58315
    14
    9.24424
    8.78615
    8.36669
    7.98187
    7.62817
    6.72448
    15
    9.55948
    9.06069
    8.60608
    8.19087
    7.81086
    6.84737
    16
    9.85137
    9.31256
    8.82371
    8.37916
    7.97399
    6.95424
    17
    10.12164
    9.54363
    9.02155
    8.54879
    8.11963
    7.04716
    18
    10.37189
    9.75563
    9.20141
    8.70162
    8.24967
    7.12797
    19
    10.60360
    9.95012
    9.36492
    8.83929
    8.36578
    7.19823
    20
    10.81815
    10.12855
    9.51356
    8.96333
    8.46944
    7.25933
    21
    11.01680
    10.29224
    9.64869
    9.07507
    8.56200
    7.31246
    22
    11.20074
    10.44243
    9.77154
    9.17574
    8.64465
    7.35866
    23
    11.37106.
    10.58021
    9.88322
    9.26643
    8.71843
    7.39884
    24
    11.52876
    10.70661
    9.98474
    9.34814
    8.78432
    7.43377
    25
    11.67478
    10.82258
    10.07704
    9.42174
    8.84314
    7.46415
    26
    11.80998
    10.92897
    10.16095
    9.48806
    8.89566
    7.49056
    27
    11.93518
    11.02658
    10.23722
    9.54780
    8.94255
    7.51353
    28
    12.05108
    11.11613
    10.30657
    9.60162
    8.98442
    7.53351
    29
    12.15841
    11.19828
    10.36961
    9.65011
    9.02181
    7.55088
    30
    12.25778
    11.27365
    10.42691
    9.69379
    9.05518
    7.56598
    31
    12.34980
    11.34280
    10.47901
    9.73315
    9.08499
    7.57911
    32
    12.43500
    11.40624
    10.52638
    9.76860
    9.11159
    7.59053
    33
    12.51389
    11.46444
    10.56943
    9.80054
    9.13535
    7.60046
    34
    12.58693
    11.51784
    10.60858
    9.82932
    9.15656
    7.60910
    35
    12.65457
    11.56682
    10.64416
    9.85524
    9.17550
    7.61661
    36
    12.71719
    11.61176
    10.67651
    9.87859
    9.19241
    7.62314
    37
    12.77518
    11.65299
    10.70592
    9.89963
    9.20751
    7.62882
    38
    12.82887
    11.69082
    10.73265
    9.91859
    9.22099
    7.63375
    39
    12.87858
    11.72552
    10.75697
    9.93567
    9.23303
    7.63805
    40
Copyright © 2016 John Wiley & Sons, Inc. All rights reserved.

Exercise 21-8 (Part Level Submission)

The following facts pertain to a noncancelable lease agreement between Windsor Leasing Company and Sheridan Company, a lessee.

Inception date: May 1, 2017 
Annual lease payment due at the beginning of   
   each year, beginning with May 1, 2017 $21,737.01 
Bargain-purchase option price at end of lease term $3,800 
Lease term years
Economic life of leased equipment 10years
Lessor’s cost $68,000 
Fair value of asset at May 1, 2017 $93,000 
Lessor’s implicit rate 10%
Lessee’s incremental borrowing rate 10%

The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs.

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(c)

Partially correct answer.Your answer is partially correct.  Try again.
  
Prepare a lease amortization schedule for Sheridan Company for the 5-year lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25125 and Round answers to 2 decimal places, e.g. 15.25.)

SHERIDAN COMPANY (Lessee)
Lease Amortization Schedule
Date
 
Annual Lease Payment Plus
BPO
 
Interest on
Liability
 
Reduction of Lease
Liability
 
Lease Liability
5/1/17 
$
Entry field with correct answer
[removed]
[removed]
[removed]
 
[removed]
[removed]
[removed]
 
(To record depreciation.)
  
 
[removed]
[removed]
[removed]
 
[removed]
[removed]
[removed]
 
(To record interest.)
  
1/1/18
[removed]
[removed]
[removed]
 
[removed]
[removed]
[removed]
 
[removed]
[removed]
[removed]
 
(To record second payament.)
  
 

 

 

 

Question 27

Pearl Corporation manufactures replicators. On January 1, 2017, it leased to Althaus Company a replicator that had cost $100,000 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of $40,200 payable each January 1, beginning January 1, 2017. An interest rate of 12% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs.

Prepare Pearl’s January 1, 2017, journal entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

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Date
Account Titles and Explanation
Debit
Credit
January 1, 2017
[removed]
[removed]
[removed]
 
[removed]
[removed]
[removed]
 
(To record the lease.)

 

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