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Exercise 6-05 (Part Level Submission) Using the appropriate interest table, compute the present values of the...

Exercise 6-05 (Part Level Submission)

Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods.

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(a)

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$52,710 receivable at the end of each period for 9 periods compounded at 12%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Present value $enter the present value in dollars rounded to 0 decimal places

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Answer #1

Present value = $280,852

Working

Annual payments (A) PVA Factor (B) Present value ( A x B)
52710 5.32825 $              280,852

Factor table used is given below

.

Period PV of $1 @12%
1 0.89286
2 0.79719
3 0.71178
4 0.63552
5 0.56743
6 0.50663
7 0.45235
8 0.40388
9 0.36061
Total for 9 period 5.32825
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