Unformatted text preview: $10,926 annual pay ment × 20 y ears ) = $281,478.
d. An inc reas e in the rate would inc reas e the amount of interes t earned by the fund and, therefore, reduc e
the amount of the pay ments required by Tilman. 16. aw ar d: 0 out of
Us e Table PV-1 (in Ex hibit B-7) and Table PV-2 (in Ex hibit B-9)
a . Determine the pres ent value of $15,000 to be paid annually for 10 y ears , dis c ounted at an annual rate of
6 perc ent. Pay ments are to oc c ur at the end of eac h y ear. (Round your PV fa ctor to 3 de cim a l
pla ce s a nd fina l a nsw e r to the ne a re st dolla r a m ount. Om it the "$" sign in your re sponse .)
Pres ent value $ 9,315 b. Determine the pres ent value $9,200 to be rec eived today , as s uming that the money will be inves ted in a
two-y ear c ertific ate of depos it earning 8 perc ent annually . (Round your PV fa ctor to 3 de cim a l pla ce s http://ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intview 17/21...
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This note was uploaded on 01/30/2014 for the course ACC 111 taught by Professor Angela during the Fall '08 term at Delaware County CC.
- Fall '08