Question

A. Using the following partial table of present value of $1 at compound Interest, the present value of $79,077 to be received three years hence with earnings at the rate of 6% a year is (round to two decimal points). Year 6% 10% 12% 0.943 0.909 0.893 2 0.890 0.826 0.797 0.840 0.751 0.712 4 0.792 0.683 0.636 $66,424.68 $50,292.97 $54,009.59 $62,628.98

Answer 1

A$ 66424.68

.840*79077

B $9830

14393*.683

C $67200

80000*.840

D $39754

13090*3.037

E $18862

5950*3.170

F $61541.95

77217*.797

Use annuity table value for annual receipt in each years. For one time receipt use present value table

For example A one time receipt. D annual receipts each year

To get value receipt must be multiplied by factor from the table

To get factor look year against the rate.

For example A Three years at 6% .840