Page 1

Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

Appendix B Time Value of Money True / False Questions

AppB-1 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 1. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-2 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Interest is the borrower's payment to the owner of an asset for its use. True

False

AppB-3 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 2. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-4 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

From the perspective of an account holder, a savings account is a liability with interest. True

False

AppB-5 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 3. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-6 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

An interest rate is also called a discount rate. True

False

AppB-7 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 4. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-8 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Present and future value computations enable companies to measure or estimate the interest component of holding assets or liabilities over time. True

False

AppB-9 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 5. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-10 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The number of periods in a present value calculation may only be expressed in years. True

False

AppB-11 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 6. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-12 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The present value factor for determining the present value of $6,300 to be received three years from today at 10% interest compounded semiannually is 0.7462. True

False

AppB-13 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 7. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-14 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know the worth of the asset at the future date. True

False

AppB-15 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 8. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-16 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time. True

False

AppB-17 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 9. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-18 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The present value of $2,000 to be received nine years from today at 8% interest compounded annually is $1,000. True

False

AppB-19 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 10. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-20 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Sandra has a savings account that has accumulated to $50,000. She started with $28,225, and earned interest at 10% compounded annually. It took her five years to accumulate the $50,000. True

False

AppB-21 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 11. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-22 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Future value can be found if the interest rate (i), the number of periods (n), and the present value (p) are known. True

False

AppB-23 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 12. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-24 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The number of periods in a future value calculation may only be expressed in years. True

False

AppB-25 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 13. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-26 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The future value of $100 compounded semiannually for 3 years at 12% equals $140.49. True

False

AppB-27 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 14. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-28 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total of $7,210.65 in 5 years. True

False

AppB-29 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 15. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-30 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

An annuity is a series of equal payments occurring at equal intervals. True

False

AppB-31 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 16. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-32 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The present value of an annuity table can be used to determine the value today of a series of payments to be received in the future. True

False

AppB-33 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 17. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-34 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A series of equal payments made or received at the end of each period is an ordinary annuity. True

False

AppB-35 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 18. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-36 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The present value of $5,000 per year for three years at 12% compounded annually is $12,009. True

False

AppB-37 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 19. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-38 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

With deposits of $5,000 at the end of each year, you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%. True

False

AppB-39 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 20. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-40 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The future value of an ordinary annuity is the accumulated value of each annuity payment excluding interest as of the date of the final payment. True

False

Multiple Choice Questions

AppB-41 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 21. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-42 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Interest may be defined as:

A. Time. B. A borrower's payment to the owner of an asset for its use. C. The future value of a present amount. D. Always a liability. E. Always an asset.

AppB-43 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 22. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-44 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

If we want to know the value of present-day assets at a future date, we can use:

A. Present value computations. B. Annuity computations. C. Interest computations. D. Future value computations. E. Earnings computations.

AppB-45 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 23. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-46 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Which interest rate column would you use from a present value or future value table for 8% interest compounded quarterly?

A. 12% B. 6% C. 3% D. 2% E. 1%

AppB-47 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 24. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-48 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is considering investing in a project that is expected to return $350,000 four years from now. How much is the company willing to pay for this investment if the company requires a 12% return?

A. $55,606 B. $137,681 C. $222,425 D. $265,764 E. $350,000

AppB-49 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 25. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-50 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Jason has a loan that requires a single payment of $4,000 at the end of 3 years. The loan's interest rate is 6%, compounded semiannually. How much did Jason borrow?

A. $3,358.40 B. $4,000.00 C. $3,660.40 D. $4,776.40 E. $3,350.00

AppB-51 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 26. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-52 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Patricia wants to invest a sum of money today that will yield $10,000 at the end of 6 years. Assuming she can earn an interest rate of 6% compounded annually, how much must she invest today?

A. $7,050 B. $9,400 C. $6,000 D. $8,836 E. $8,306

AppB-53 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 27. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-54 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today?

A. $50,000.00 B. $47,500.00 C. $45,125.00 D. $38,608.50 E. $100,000.00

AppB-55 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 28. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-56 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Cody invests $1,800 per year from his summer wages at a 4% annual interest rate. He plans to take a European vacation at the end of 4 years when he graduates from college. How much will he have available to spend on his vacation?

A. $7,787.52 B. $7,488.00 C. $6,912.00 D. $7,200.00 E. $7,643.70

AppB-57 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 29. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-58 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Jessica received a gift of $7,500 at the time of her high school graduation. She invests it in an account that yields 10% compounded semi-annually. What will the value of Jessica's investment be at the end of 5 years?

A. $8,250.00 B. $11,250.00 C. $12,216.75 D. $9,375.00 E. $10,500.00

AppB-59 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 30. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-60 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company expects to invest $5,000 today at 12% annual interest and plans to receive $15,529 at the end of the investment period. How many years will elapse before the company accumulates the $15,529?

A. 0.322 years B. 3.1058 years C. 5 years D. 8 years E. 10 years

AppB-61 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 31. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-62 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Keisha has $3,500 now and plans on investing it in a fund that will pay her 12% interest compounded quarterly. How much will Keisha have accumulated after 2 years?

A. $4,433.80 B. $4,340.00 C. $4,390.40 D. $3,920.00 E. $3,500.00

AppB-63 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 32. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-64 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

How long will it take an investment of $25,000 at 6% compounded annually to accumulate to a total of $35,462.50?

A. 4 years B. 5 years C. 6 years D. 2 years E. 10 years

AppB-65 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 33. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-66 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

What interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000?

A. 5% B. 8% C. 10% D. 12% E. 15%

AppB-67 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 34. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-68 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Russell Company has acquired a building with a loan that requires payments of $20,000 every six months for 5 years. The annual interest rate on the loan is 12%. What is the present value of the building?

A. $72,096 B. $113,004 C. $147,202 D. $86,590 E. $200,000

AppB-69 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 35. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-70 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Marc Lewis expects an investment of $25,000 to return $6,595 annually. His investment is earning 10% per year. How many annual payments will he receive?

A. Five payments B. Six payments C. Four payments D. Three payments E. More than six payments

AppB-71 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 36. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-72 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is considering an investment that will return $22,000 semiannually at the end of each semiannual period for 4 years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment?

A. Not more than $69,738 B. Not more than $139,476 C. Not more than $88,000 D. Not more than $142,190 E. Not more than $176,000

AppB-73 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 37. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-74 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?

A. $24,838.00 B. $21,668.80 C. $31,049.00 D. $40,000.00 E. $44,800.00

AppB-75 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 38. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-76 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

What amount can you borrow if you make seven semiannual payments of $4,000 at an 8% annual rate of interest?

A. $28,000.00 B. $25,760.00 C. $31,049.00 D. $24,008.40 E. $35,691.20

AppB-77 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 39. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-78 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

An individual is planning to set-up an education fund for her daughter. She plans to invest $7,000 annually at the end of each year. She expects to withdraw money from the fund at the end of 9 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 9 years?

A. $87,416 B. $68,040 C. $50,400 D. $126,000 E. $45,360

AppB-79 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 40. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-80 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

An individual is planning to set-up an education fund for his grandchildren. He plans to invest $10,000 annually at the end of each year. He expects to withdraw money from the fund at the end of 10 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 10 years?

A. $46,320 B. $67,107 C. $100,000 D. $144,870 E. $215,890

AppB-81 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 41. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-82 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Clara is setting up a retirement fund, and she plans on depositing $5,000 per year in an investment that will pay 7% annual interest. How long will it take her to reach her retirement goal of $69,080?

A. 13.816 years B. 0.072 years C. 10 years D. 20 years E. 5 years

AppB-83 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 42. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-84 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The Masterson family is setting up a vacation fund, and they plan on depositing $1,000 per quarter in an investment that will pay 12% annual interest. What amount will they have available for their vacation at the end of 2 years?

A. $8,000.00 B. $8,960.00 C. $8,892.30 D. $8,240.00 E. $8,487.20

AppB-85 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 43. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-86 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?

A. $141,000 B. $112,095 C. $100,000 D. $45,000 E. $105,000

AppB-87 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 44. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-88 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Jackson has a loan that requires a $17,000 lump sum payment at the end of four years. The interest rate on the loan is 5%, compounded annually. How much did Jackson borrow today?

A. $16,150 B. $13,600 C. $11,504 D. $13,986 E. $15,343

AppB-89 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 45. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-90 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?

A. $58,204 B. $47,840 C. $58,075 D. $57,040 E. $62,582

Short Answer Questions

AppB-91 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 46. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-92 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Define interest.

AppB-93 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 47. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-94 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Explain the concept of the present value of a single amount.

AppB-95 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 48. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-96 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Explain the concept of the future value of a single amount.

AppB-97 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 49. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-98 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Explain the concept of the present value of an annuity.

AppB-99 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 50. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-100 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Explain the concept of the future value of an annuity.

Essay Questions

AppB-101 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 51. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-102 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company needs to have $200,000 in 4 years, and will create a fund to insure that the $200,000 will be available. If it can earn a 7% return compounded annually, how much must the company invest in the fund today to equal the $200,000 at the end of 4 years?

AppB-103 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 52. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-104 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?

AppB-105 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 53. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-106 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Kelsey has a loan that requires a $25,000 lump sum payment at the end of three years. The interest rate on the loan is 5%, compounded annually. How much did Kelsey borrow today?

AppB-107 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 54. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-108 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Jackson has a loan that requires a $17,000 lump sum payment at the end of four years. The interest rate on the loan is 5%, compounded annually. How much did Jackson borrow today?

AppB-109 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 55. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-110 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Mason Company has acquired a machine from a dealer that requires a payment of $45,000 at the end of five years. This transaction includes interest at 8%, compounded semiannually. What is the value of the machine today?

AppB-111 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 56. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-112 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Protocol Company has acquired equipment from a dealer that requires equal payments of $12,000 at the end of the next five years. This transaction includes interest at 9%, compounded annually. What is the value of the machine today?

AppB-113 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 57. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-114 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is creating a fund today by depositing $65,763. The fund will grow to $90,000 after 8 years. What annual interest rate is the company earning on the fund?

AppB-115 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 58. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-116 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is setting aside $21,354 today, and wishes to have $30,000 at the end of three years for a down payment on a piece of property. What interest rate must the company earn?

AppB-117 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 59. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-118 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company has $50,000 today to invest in a fund that will earn 7%. How much will the fund contain at the end of 8 years?

AppB-119 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 60. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-120 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?

AppB-121 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 61. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-122 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Trey has $105,000 now. He has a loan of $175,000 that he must pay at the end of 5 years. He can invest his $105,000 at 10% interest compounded semiannually. Will Trey have enough to pay his loan at the end of the 5 years?

AppB-123 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 62. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-124 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Garcia Brass Fixtures is planning on replacing one of its machines in five years by making a onetime deposit of $20,000 today and four yearly contributions of $5,000 beginning at the end of year 1. The deposits will earn 10% interest. How much money will Garcia have accumulated at the end of five years to replace the machine?

AppB-125 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 63. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-126 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company borrows money from the bank by promising to make 6 annual year-end payments of $27,000 each. How much is the company able to borrow if the interest rate is 9%?

AppB-127 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 64. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-128 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company borrows money from the bank by promising to make 8 semiannual payments of $9,000 each. How much is the company able to borrow if the interest rate is 10% compounded semiannually?

AppB-129 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 65. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-130 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

When you reach retirement age, you will have one fund of $100,000 from which you are going to make annual withdrawals of $14,702. The fund will earn 6% per year. For how many years will you be able to draw an even amount of $14,702?

AppB-131 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 66. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-132 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

City Peewee League borrowed $883,212, and must make annual year-end payments of $120,000 each. If City's interest rate is 6%, how many years will it take to pay off the loan?

AppB-133 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 67. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-134 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Giuliani Co. lends $524,210 to Craig Corporation. The terms of the loan require that Craig make six semiannual period-end payments of $100,000 each. What semiannual interest rate is Craig paying on the loan?

AppB-135 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 68. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-136 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is beginning a savings plan. It will be saving $15,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 10% interest?

AppB-137 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 69. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-138 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is beginning a savings plan to purchase a new building. It will be saving $43,000 per year for the next 10 years. How much will the company have accumulated after the tenth yearend deposit, assuming the fund earns 9% interest?

AppB-139 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 70. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-140 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

You are little late planning your retirement, but are looking forward to retiring in 10 years. You expect to save $6,000 a year at an annual rate of 8%. How much will you have accumulated when you retire?

AppB-141 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 71. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-142 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is setting up a sinking fund to pay off $8,654,000 in bonds that are due in 7 years. The fund will earn 7% interest, and the company intends to put away a series of equal year-end amounts for 7 years. What is the amount of the annual deposits that the company must make?

Fill in the Blank Questions

AppB-143 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 72. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-144 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

_____________ is a borrower's payment to the owner of an asset for its use. ________________________________________

AppB-145 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 73. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-146 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The interest rate is also called the __________________ rate. ________________________________________

AppB-147 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 74. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-148 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

To calculate present value of an amount, two factors are required: The __________________ and the ___________________. ________________________________________

AppB-149 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 75. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-150 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

An _____________ is a series of equal payments occurring at equal intervals. ________________________________________

AppB-151 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 76. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-152 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The future value of an ________________ annuity is the accumulated value of each annuity payment with interest as of the date of the final payment. ________________________________________

AppB-153 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

Appendix B Time Value of Money Answer Key True / False Questions

AppB-154 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 1.

Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-155 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Interest is the borrower's payment to the owner of an asset for its use. TRUE AACSB: Communication AICPA: BB Industry AICPA: FN Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values. Topic: Present and Future Value Concepts

AppB-156 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-157 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 2.

Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-158 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

From the perspective of an account holder, a savings account is a liability with interest. FALSE AACSB: Communication AICPA: BB Industry AICPA: FN Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values. Topic: Present and Future Value Concepts

AppB-159 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-160 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 3.

Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-161 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

An interest rate is also called a discount rate. TRUE AACSB: Communication AICPA: BB Industry AICPA: FN Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-162 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-163 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 4.

Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-164 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Present and future value computations enable companies to measure or estimate the interest component of holding assets or liabilities over time. TRUE AACSB: Communication AICPA: BB Industry AICPA: FN Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values. Topic: Present and Future Value Concepts

AppB-165 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-166 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 5.

Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-167 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The number of periods in a present value calculation may only be expressed in years. FALSE AACSB: Communication AICPA: BB Industry AICPA: FN Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-168 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-169 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 6.

Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-170 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The present value factor for determining the present value of $6,300 to be received three years from today at 10% interest compounded semiannually is 0.7462. TRUE AACSB: Communication AICPA: BB Industry AICPA: FN Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-171 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-172 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 7.

Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-173 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know the worth of the asset at the future date. FALSE AACSB: Communication AICPA: BB Industry AICPA: FN Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-174 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-175 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 8.

Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-176 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time. TRUE AACSB: Communication AICPA: BB Industry AICPA: FN Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount Topic: Present Value of a Single Amount

AppB-177 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-178 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 9.

Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-179 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The present value of $2,000 to be received nine years from today at 8% interest compounded annually is $1,000. TRUE Present Value = Future Value * Interest Factor for 9 years @8% Present Value = $2,000 * 0.5002 = $1,000

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-180 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-181 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 10. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-182 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Sandra has a savings account that has accumulated to $50,000. She started with $28,225, and earned interest at 10% compounded annually. It took her five years to accumulate the $50,000. FALSE PV Factor = Present Value/Future Value PV Factor = $28,225/$50,000 = 0.5645 0.5645 is the present value of 1 factor, 10%, 6 periods

AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: BB Industry AICPA: FN Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-183 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-184 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 11. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-185 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Future value can be found if the interest rate (i), the number of periods (n), and the present value (p) are known. TRUE AACSB: Communication AICPA: BB Industry AICPA: FN Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

AppB-186 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-187 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 12. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-188 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The number of periods in a future value calculation may only be expressed in years. FALSE AACSB: Communication AICPA: BB Industry AICPA: FN Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

AppB-189 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-190 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 13. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-191 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The future value of $100 compounded semiannually for 3 years at 12% equals $140.49. FALSE Future Value = Present Value * Interest Factor Future Value = $100 * 1.4185 = $141.85

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

AppB-192 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-193 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 14. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-194 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total of $7,210.65 in 5 years. FALSE FV Factor = Future Value/Present Value FV Factor = $7,210.65/$5,300 = 1.3605 1.3605 is the future value of $1 factor, 8%, 4 periods

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

AppB-195 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-196 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 15. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-197 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

An annuity is a series of equal payments occurring at equal intervals. TRUE AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-198 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-199 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 16. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-200 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The present value of an annuity table can be used to determine the value today of a series of payments to be received in the future. TRUE AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-201 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-202 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 17. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-203 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A series of equal payments made or received at the end of each period is an ordinary annuity. TRUE AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-204 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-205 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 18. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-206 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The present value of $5,000 per year for three years at 12% compounded annually is $12,009. TRUE 2.4018 is the PV factor on the Present Value of an Annuity table; n = 3; i = 12% Present Value of an Annuity = Annuity * PV Factor Present Value of an Annuity = $5,000 * 2.4018 = $12,009

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-207 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-208 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 19. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-209 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

With deposits of $5,000 at the end of each year, you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%. TRUE 7.7156 is the FV factor on the Future Value of an Annuity table; n = 6; i = 10% Future Value of an Annuity = Annuity * FV Factor Future Value of an Annuity = $5,000 * 7.7156 = $38,578 7.7156 is the interest factor on the Future Value of an Annuity table; n = 6; i = 10%

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

AppB-210 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-211 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 20. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-212 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The future value of an ordinary annuity is the accumulated value of each annuity payment excluding interest as of the date of the final payment. FALSE AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Understand Difficulty: 2 Medium Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

Multiple Choice Questions

AppB-213 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 21. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-214 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Interest may be defined as:

A. B. C. D. E.

Time. A borrower's payment to the owner of an asset for its use. The future value of a present amount. Always a liability. Always an asset. AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values. Topic: Present and Future Value Concepts

AppB-215 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-216 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 22. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-217 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

If we want to know the value of present-day assets at a future date, we can use:

A. B. C. D. E.

Present value computations. Annuity computations. Interest computations. Future value computations. Earnings computations. AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Understand Difficulty: 2 Medium Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values. Topic: Present and Future Value Concepts

AppB-218 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-219 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 23. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-220 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Which interest rate column would you use from a present value or future value table for 8% interest compounded quarterly?

A. B. C. D. E.

12% 6% 3% 2% 1%

An 8% annual interest rate is divided by 4 to find the quarterly rate.

AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Understand Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount Topic: Present Value of a Single Amount

AppB-221 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-222 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 24. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-223 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is considering investing in a project that is expected to return $350,000 four years from now. How much is the company willing to pay for this investment if the company requires a 12% return?

A. B. C. D. E.

$55,606 $137,681 $222,425 $265,764 $350,000

The PV factor on the Present Value table when n = 4 and i = 12% is 0.6355 Present Value = Future Value * PV Factor Present Value = $350,000 * 0.6355 = $222,425

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-224 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-225 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 25. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-226 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Jason has a loan that requires a single payment of $4,000 at the end of 3 years. The loan's interest rate is 6%, compounded semiannually. How much did Jason borrow?

A. B. C. D. E.

$3,358.40 $4,000.00 $3,660.40 $4,776.40 $3,350.00

3 years = 6 semiannual periods; 6% annual interest = 3% semiannually The PV factor on the Present Value table when n = 6 and i = 3% is 0.8375 Present Value = Future Value * PV Factor Present Value = $4,000 * 0.8375 = $3,350.00

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-227 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-228 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 26. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-229 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Patricia wants to invest a sum of money today that will yield $10,000 at the end of 6 years. Assuming she can earn an interest rate of 6% compounded annually, how much must she invest today?

A. B. C. D. E.

$7,050 $9,400 $6,000 $8,836 $8,306

The PV factor on the Present Value table when n = 6 and i = 6% is 0.7050 Present Value = Future Value * PV Factor Present Value = $10,000 * 0.7050 = $7,050.00

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-230 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-231 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 27. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-232 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today?

A. B. C. D. E.

$50,000.00 $47,500.00 $45,125.00 $38,608.50 $100,000.00

The PV factor on the Present Value of an Annuity table when n = 10 and i = 5% is 7.7217 Present Value = Future Annuity Value * PV Factor Present Value = $5,000 * 7.7217 = $38,608.50

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-233 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-234 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 28. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-235 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Cody invests $1,800 per year from his summer wages at a 4% annual interest rate. He plans to take a European vacation at the end of 4 years when he graduates from college. How much will he have available to spend on his vacation?

A. B. C. D. E.

$7,787.52 $7,488.00 $6,912.00 $7,200.00 $7,643.70

The FV factor on the Future Value of an Annuity table when n = 4 and i = 4% is 4.2465 Future Value = Annuity Value * FV Factor Future Value = $1,800 * 4.2465 = $7,643.70

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

AppB-236 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-237 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 29. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-238 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Jessica received a gift of $7,500 at the time of her high school graduation. She invests it in an account that yields 10% compounded semi-annually. What will the value of Jessica's investment be at the end of 5 years? A. B. C. D. E.

$8,250.00 $11,250.00 $12,216.75 $9,375.00 $10,500.00

Five years = 10 semiannual periods and a 10% annual interest rate = 5% semiannually The FV factor on the Future Value of 1 table when n = 10 and i = 5% is 1.6289 Future Value = Present Value * FV Factor Future Value = $7,500 * 1.6289 = $12,216.75

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

AppB-239 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-240 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 30. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-241 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company expects to invest $5,000 today at 12% annual interest and plans to receive $15,529 at the end of the investment period. How many years will elapse before the company accumulates the $15,529?

A. B. C. D. E.

0.322 years 3.1058 years 5 years 8 years 10 years

Present Value = Future Value * PV Factor $5,000 = $15,529 * PV Factor PV Factor = 0.3220 0.3220 is the PV factor on the Present Value table; i = 12%; n = 10 Or, Alternative Solution: Future Value = Present Value * FV Factor $15,529 = $5,000 * FV Factor Interest Factor = 3.1058; 3.1058 is the FV factor on the Future Value table; i = 12%; n = 10

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount Topic: Present Value of a Single Amount

AppB-242 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-243 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 31. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-244 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Keisha has $3,500 now and plans on investing it in a fund that will pay her 12% interest compounded quarterly. How much will Keisha have accumulated after 2 years?

A. B. C. D. E.

$4,433.80 $4,340.00 $4,390.40 $3,920.00 $3,500.00

Two years = 8 quarterly periods and a 12% annual interest rate = 3% quarterly The FV factor on the Future Value of 1 table where i = 3% and n = 8 is 1.2668 Future Value = Present Value * FV Factor Future Value = $3,500 * 1.2668 = $4,433.80

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

AppB-245 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-246 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 32. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-247 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

How long will it take an investment of $25,000 at 6% compounded annually to accumulate to a total of $35,462.50?

A. B. C. D. E.

4 years 5 years 6 years 2 years 10 years

Present Value = Future Value * PV Factor $25,000 = $35,462.50 * PV Factor; PV Factor = 0.7050 0.7050 is the interest factor on the Present Value table; i = 6%; n = 6 Alternative Solution: Future Value = Present Value * FV Factor $35,462.50 = $25,000 * FV Factor; FV Factor = 1.4185 1.4185 is the interest factor on the Future Value table; i = 6%; n = 6

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount Topic: Present Value of a Single Amount

AppB-248 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-249 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 33. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-250 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

What interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000?

A. B. C. D. E.

5% 8% 10% 12% 15%

Present Value = Future Value * PV Factor $5,000 = $6,802.50 * PV Factor; PV Factor = 0.7350 0.7350 is the PV factor on the Present Value table; n = 4; i = 8% Or, Alternative Solution: Future Value = Present Value * FV Factor $6,802.50 = $5,000 * FV Factor; Interest Factor = 1.3605 1.3605 is the FV factor on the Future Value table; n = 4; i = 8%

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount Topic: Present Value of a Single Amount

AppB-251 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-252 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 34. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-253 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Russell Company has acquired a building with a loan that requires payments of $20,000 every six months for 5 years. The annual interest rate on the loan is 12%. What is the present value of the building?

A. B. C. D. E.

$72,096 $113,004 $147,202 $86,590 $200,000

The PV factor on the Present Value of an Annuity table when n = 5 and i = 12% is 7.3601. Present Value of an Annuity = Annuity * PV Factor Present Value of an Annuity = $20,000 * 7.3601 = $147,202

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-254 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-255 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 35. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-256 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Marc Lewis expects an investment of $25,000 to return $6,595 annually. His investment is earning 10% per year. How many annual payments will he receive?

A. B. C. D. E.

Five payments Six payments Four payments Three payments More than six payments

Present Value of an Annuity = Annuity * PV Factor $25,000 = $6,595 * PV Factor; PV Factor = 0.3.7908 3.7908 is the PV factor on the Present Value of an Annuity table; i = 10%; n = 5

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-257 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-258 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 36. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-259 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is considering an investment that will return $22,000 semiannually at the end of each semiannual period for 4 years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment?

A. B. C. D. E.

Not more than $69,738 Not more than $139,476 Not more than $88,000 Not more than $142,190 Not more than $176,000

The PV factor on the Present Value of an Annuity table when n = 8 and i = 5% is 6.4632. Present Value of an Annuity = Annuity * PV Factor Present Value of an Annuity = $22,000 * 6.4632 = $142,190

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-260 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-261 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 37. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-262 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?

A. B. C. D. E.

$24,838.00 $21,668.80 $31,049.00 $40,000.00 $44,800.00

The PV factor on the Present Value of an Annuity table when n = 6 and i = 3% is 5.4172. Present Value of an Annuity = Annuity * PV Factor Present Value of an Annuity = $4,000 * 5.4172 = $21,668.80

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-263 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-264 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 38. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-265 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

What amount can you borrow if you make seven semiannual payments of $4,000 at an 8% annual rate of interest?

A. B. C. D. E.

$28,000.00 $25,760.00 $31,049.00 $24,008.40 $35,691.20

An 8% annual interest rate = 4% semiannually The PV factor on the Present Value of an Annuity table when n = 7 and i = 4% is 6.0021. Present Value of an Annuity = Annuity * PV Factor Present Value of an Annuity = $4,000 * 6.0021 = $24,008.40

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-266 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-267 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 39. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-268 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

An individual is planning to set-up an education fund for her daughter. She plans to invest $7,000 annually at the end of each year. She expects to withdraw money from the fund at the end of 9 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 9 years? A. B. C. D. E.

$87,416 $68,040 $50,400 $126,000 $45,360

The FV factor on the Future Value of an Annuity table when n = 9 and i = 8% is 12.488. Future Value of an Annuity = Annuity * FV Factor Future Value of an Annuity = $7,000 * 12.488 = $87,416

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

AppB-269 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-270 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 40. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-271 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

An individual is planning to set-up an education fund for his grandchildren. He plans to invest $10,000 annually at the end of each year. He expects to withdraw money from the fund at the end of 10 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 10 years? A. B. C. D. E.

$46,320 $67,107 $100,000 $144,870 $215,890

The FV factor on the Future Value of an Annuity table when n = 10 and i = 8% is 14.487. Future Value of an Annuity = Annuity * FV Factor Future Value of an Annuity = $10,000 * 14.487 = $144,870

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

AppB-272 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-273 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 41. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-274 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Clara is setting up a retirement fund, and she plans on depositing $5,000 per year in an investment that will pay 7% annual interest. How long will it take her to reach her retirement goal of $69,080?

A. B. C. D. E.

13.816 years 0.072 years 10 years 20 years 5 years

Future Value of an Annuity = Annuity * Interest Factor $69,080 = $5,000 * Interest Factor; Interest Factor = 13.816 13.816 is the interest factor on the Future Value of an Annuity table; i = 7%; n = 10

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

AppB-275 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-276 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 42. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-277 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The Masterson family is setting up a vacation fund, and they plan on depositing $1,000 per quarter in an investment that will pay 12% annual interest. What amount will they have available for their vacation at the end of 2 years? A. B. C. D. E.

$8,000.00 $8,960.00 $8,892.30 $8,240.00 $8,487.20

Two years = 8 semiannual periods and a 12% annual interest rate = 3% semiannually The FV factor on the Future Value of an Annuity table when n = 8; i = 3% is 8.8923 Annuity * FV Factor = Future Value of an Annuity $1,000 * 8.8923 = $8,892.30

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

AppB-278 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-279 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 43. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-280 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?

A. B. C. D. E.

$141,000 $112,095 $100,000 $45,000 $105,000

The PV factor on the Present Value of 1 table when n = 5 and i = 6% is 0.7473 Present Value = Future Value * PV Factor Present Value = $150,000 * 0.7473 = $112,095

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-281 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-282 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 44. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-283 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Jackson has a loan that requires a $17,000 lump sum payment at the end of four years. The interest rate on the loan is 5%, compounded annually. How much did Jackson borrow today?

A. B. C. D. E.

$16,150 $13,600 $11,504 $13,986 $15,343

The PV factor on the Present Value of 1 table when n = 4 and i = 5% is 0.8227 Present Value = Future Value * PV Factor Present Value = $17,000 * 0.8227 = $13,986

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-284 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-285 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 45. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-286 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?

A. B. C. D. E.

$58,204 $47,840 $58,075 $57,040 $62,582

The FV factor on the Future Value of 1 table when n = 6 and i = 4% is 1.2653 Future Value = Present Value * FV Factor Future Value = $46,000 *1.2653 = $58,204

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

Short Answer Questions

AppB-287 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 46. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-288 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Define interest.

Interest represents a borrower's payment to an owner of an asset in exchange for its use.

AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values. Topic: Present and Future Value Concepts

AppB-289 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-290 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 47. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-291 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Explain the concept of the present value of a single amount.

The present value of a single amount is used to find today's value for an amount to be received at a future date. It is equal to the amount that can be invested now at the specified interest rate to yield the future value.

AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-292 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-293 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 48. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-294 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Explain the concept of the future value of a single amount.

The future value of a single amount is equal to the present amount that would accumulate at a future date at a specified rate of interest.

AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

AppB-295 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-296 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 49. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-297 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Explain the concept of the present value of an annuity.

The present value of an annuity is the amount that can be invested now at the specified interest rate to yield a future series of equal periodic payments.

AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-298 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-299 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 50. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-300 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Explain the concept of the future value of an annuity.

The future value of an annuity is the amount invested today at a specified rate of interest that would accumulate at the date of the final periodic payment.

AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

Essay Questions

AppB-301 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 51. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-302 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company needs to have $200,000 in 4 years, and will create a fund to insure that the $200,000 will be available. If it can earn a 7% return compounded annually, how much must the company invest in the fund today to equal the $200,000 at the end of 4 years?

$152,580 Feedback: The PV factor on the Present Value of 1 table when n = 4 and i = 7% is 0.7629 Present Value = Future Value * PV Factor Present Value = $200,000 * 0.7629 = $152,580

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-303 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-304 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 52. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-305 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?

$112,095 Feedback: The PV factor on the Present Value of 1 table when n = 5 and i = 6% is 0.7473 Present Value = Future Value * PV Factor Present Value = $150,000 * 0.7473 = $112,095

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-306 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-307 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 53. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-308 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Kelsey has a loan that requires a $25,000 lump sum payment at the end of three years. The interest rate on the loan is 5%, compounded annually. How much did Kelsey borrow today?

$21,595 Feedback: The PV factor on the Present Value of 1 table when n = 3 and i = 5% is 0.8638 Present Value = Future Value * PV Factor Present Value = $25,000 * 0.8638 = $21,595

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-309 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-310 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 54. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-311 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Jackson has a loan that requires a $17,000 lump sum payment at the end of four years. The interest rate on the loan is 5%, compounded annually. How much did Jackson borrow today?

$13,896 Feedback: The PV factor on the Present Value of 1 table when n = 4 and i = 5% is 0.8227 Present Value = Future Value * PV Factor Present Value = $17,000 * 0.8227 = $13,986

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-312 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-313 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 55. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-314 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Mason Company has acquired a machine from a dealer that requires a payment of $45,000 at the end of five years. This transaction includes interest at 8%, compounded semiannually. What is the value of the machine today?

$30,402 Feedback: Five years = 10 semiannual periods at an 8% annual interest rate = 4% semiannually The PV factor on the Present Value of 1 table when n = 10 and i = 4% is 0.6756 Present Value = Future Value * PV Factor Present Value = $45,000 * 0.6756 = $30,402

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-315 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-316 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 56. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-317 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Protocol Company has acquired equipment from a dealer that requires equal payments of $12,000 at the end of the next five years. This transaction includes interest at 9%, compounded annually. What is the value of the machine today?

$46,676 Feedback: The PV factor on the Present Value of an Annuity table when n = 5 and i = 9% is 3.8897 Present Value = Future Value * PV of an Annuity Factor Present Value = $12,000 * 3.8897 = $46,676

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-318 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-319 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 57. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-320 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is creating a fund today by depositing $65,763. The fund will grow to $90,000 after 8 years. What annual interest rate is the company earning on the fund?

4% Feedback: Present Value = Future Value * PV Factor $65,763 = $90,000 * PV Factor; PV Factor = 0.7307 0.7307 is the PV factor on the Present Value table; n = 8; i = 4% Or, Alternative Solution: Future Value = Present Value * FV Factor $90,000 = $65,763 * FV Factor; FV Factor = 1.3686 1.3686 is the FV factor on the Future Value table; n = 8; i = 4%

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount Topic: Present Value of a Single Amount

AppB-321 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-322 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 58. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-323 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is setting aside $21,354 today, and wishes to have $30,000 at the end of three years for a down payment on a piece of property. What interest rate must the company earn?

12% Feedback: Present Value = Future Value * PV Factor $21,354 = $30,000 * PV Factor; PV Factor = 0.7118 0.7118 is the PV factor on the Present Value table; n = 3; i = 12% Or, Alternative Solution: Future Value = Present Value * FV Factor $30,000 = $21,354 * FV Factor; FV Factor = 1.4049 1.3605 is the FV factor on the Future Value table; n = 3; i = 12%

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount Topic: Present Value of a Single Amount

AppB-324 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-325 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 59. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-326 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company has $50,000 today to invest in a fund that will earn 7%. How much will the fund contain at the end of 8 years?

$85,910 Feedback: Future Value = Present Value * FV Factor Future Value = $50,000 *1.7182 = $85,910 1.7182 is the FV factor on the Future Value table; n = 8; i = 7%

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

AppB-327 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-328 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 60. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-329 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?

$58,204 Feedback: The FV factor on the Future Value of 1 table when n = 6 and i = 4% is 1.2653 Future Value = Present Value * FV Factor Future Value = $46,000 *1.2653 = $58,204

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

AppB-330 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-331 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 61. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-332 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Trey has $105,000 now. He has a loan of $175,000 that he must pay at the end of 5 years. He can invest his $105,000 at 10% interest compounded semiannually. Will Trey have enough to pay his loan at the end of the 5 years?

No, Trey will be $3,965.50 short of his goal of $175,000. Feedback: Future Value = Present Value * Interest Factor Future Value = $105,000 * 1.6289 = $171,034.50 1.6289 is the interest factor on the Future Value table; n = 5 * 2 = 10; i = 10/2 = 5% Goal of $175,000 - Future Value of $171,034.50 = Shortage of $3,965.50

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Topic: Future Value of a Single Amount

AppB-333 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-334 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 62. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-335 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Garcia Brass Fixtures is planning on replacing one of its machines in five years by making a onetime deposit of $20,000 today and four yearly contributions of $5,000 beginning at the end of year 1. The deposits will earn 10% interest. How much money will Garcia have accumulated at the end of five years to replace the machine?

$55,415 Feedback: Future Value = Present Value * FV Factor Future Value = $20,000 * 1.6105 = $32,210 1.6105 is the FV factor on the Future Value table; n = 5; i = 10% Future Value of an Annuity = Annuity * FV Factor Future Value of an Annuity = $5,000 * 4.6410 = $23,205 4.6410 is the FV factor on the Future Value of an Annuity table; n = 4; i = 10% Accumulated Funds = $32,210 + $23,205 = $55,415

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P2 Apply future value concepts to a single amount by using interest tables. Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of a Single Amount Topic: Future Value of an Annuity

AppB-336 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-337 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 63. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-338 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company borrows money from the bank by promising to make 6 annual year-end payments of $27,000 each. How much is the company able to borrow if the interest rate is 9%?

$121,119 Feedback: Present Value of an Annuity = Annuity * PV Factor Present Value of an Annuity = $27,000 * 4.4859 = $121,119 4.4859 is the PV factor on the Present Value of an Annuity table; n = 6; i = 9%

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-339 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-340 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 64. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-341 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company borrows money from the bank by promising to make 8 semiannual payments of $9,000 each. How much is the company able to borrow if the interest rate is 10% compounded semiannually?

$58,168.80 Feedback: Present Value of an Annuity = Annuity * PV Factor Present Value of an Annuity = $9,000 * 6.4632 = $58,168.80 6.4632 is the PV factor on the Present Value of an Annuity table; n = 8; i = 10%/2 = 5%

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-342 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-343 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 65. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-344 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

When you reach retirement age, you will have one fund of $100,000 from which you are going to make annual withdrawals of $14,702. The fund will earn 6% per year. For how many years will you be able to draw an even amount of $14,702?

Nine Years Feedback: Present Value of an Annuity = Annuity * PV Factor $100,000 = $14,702 * PV Factor; PV Factor = 6.8017 6.8017 is the PV factor on the Present Value of an Annuity table; i = 6%; n = 9

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-345 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-346 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 66. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-347 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

City Peewee League borrowed $883,212, and must make annual year-end payments of $120,000 each. If City's interest rate is 6%, how many years will it take to pay off the loan?

Ten Years Feedback: Present Value of an Annuity = Annuity * Interest Factor $883,212 = $120,000 * Interest Factor; Interest Factor = 7.3601 7.3601 is the interest factor on the Present Value of an Annuity table; i = 6%; n = 10

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-348 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-349 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 67. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-350 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

Giuliani Co. lends $524,210 to Craig Corporation. The terms of the loan require that Craig make six semiannual period-end payments of $100,000 each. What semiannual interest rate is Craig paying on the loan?

4% semi-annual rate Feedback: Present Value of an Annuity = Annuity * Interest Factor $524,210 = $100,000 * Interest Factor; Interest Factor = 5.2421 5.2421 is the interest factor on the Present Value of an Annuity table; n = 6; i = 4% Craig is paying a 4% semi-annual rate or an 8% annual rate of interest

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-351 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-352 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 68. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-353 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is beginning a savings plan. It will be saving $15,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 10% interest?

$239,055 Feedback: The FV factor on the Future Value of an Annuity table when n = 10 and i = 10% is 15.937. Future Value of an Annuity = Annuity * Interest Factor Future Value of an Annuity = $15,000 * 15.937 = $239,055

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

AppB-354 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-355 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 69. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-356 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is beginning a savings plan to purchase a new building. It will be saving $43,000 per year for the next 10 years. How much will the company have accumulated after the tenth yearend deposit, assuming the fund earns 9% interest?

$653,299 Feedback: The FV factor on the Future Value of an Annuity table when n = 10 and i = 9% is 15.193. Future Value of an Annuity = Annuity * FV Factor Future Value of an Annuity = $43,000 * 15.193 = $653,299

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

AppB-357 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-358 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 70. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-359 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

You are little late planning your retirement, but are looking forward to retiring in 10 years. You expect to save $6,000 a year at an annual rate of 8%. How much will you have accumulated when you retire?

$86,922 Feedback: The FV factor on the Future Value of an Annuity table when n = 10 and i = 8% is 14.487. Future Value of an Annuity = Annuity * FV Factor Future Value of an Annuity = $6,000 * 14.487 = $86,922

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 2 Medium Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

AppB-360 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-361 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 71. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-362 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

A company is setting up a sinking fund to pay off $8,654,000 in bonds that are due in 7 years. The fund will earn 7% interest, and the company intends to put away a series of equal year-end amounts for 7 years. What is the amount of the annual deposits that the company must make?

$1,000,000 Feedback: Future Value of an Annuity = Annuity * Interest Factor $8,654,000 = Annuity * 8.654; Annuity = $1,000,000 8.654 is the interest factor on the Future Value of an Annuity table; n = 7; i = 7%

AACSB: Analytical Thinking AICPA: BB Industry AICPA: FN Decision Making Blooms: Apply Difficulty: 3 Hard Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

Fill in the Blank Questions

AppB-363 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 72. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-364 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

_____________ is a borrower's payment to the owner of an asset for its use. Interest AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values. Topic: Present and Future Value Concepts

AppB-365 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-366 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 73. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-367 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The interest rate is also called the __________________ rate. Discount AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Understand Difficulty: 2 Medium Learning Objective: AppB-C1 Describe the earning of interest and the concepts of present and future values. Topic: Present and Future Value Concepts

AppB-368 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-369 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 74. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-370 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

To calculate present value of an amount, two factors are required: The __________________ and the ___________________. Interest rate (i); Number of time periods (n) AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P1 Apply present value concepts to a single amount by using interest tables. Topic: Present Value of a Single Amount

AppB-371 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-372 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 75. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-373 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

An _____________ is a series of equal payments occurring at equal intervals. Annuity AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P3 Apply present value concepts to an annuity by using interest tables. Topic: Present Value of an Annuity

AppB-374 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil

AppB-375 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil 76. Present Value of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

0.9151

0.8890

0.8638

0.8396

0.8163

0.7938

0.7722

0.7513

0.7118

4

0.8885

0.8548

0.8227

0.7921

0.7629

0.7350

0.7084

0.6830

0.6355

5

0.8626

0.8219

0.7835

0.7473

0.7130

0.6806

0.6499

0.6209

0.5674

6

0.8375

0.7903

0.7462

0.7050

0.6663

0.6302

0.5963

0.5645

0.5066

7

0.8131

0.7599

0.7107

0.6651

0.6227

0.5835

0.5470

0.5132

0.4523

8

0.7894

0.7307

0.6768

0.6274

0.5820

0.5403

0.5019

0.4665

0.4039

9

0.7664

0.7026

0.6446

0.5919

0.5439

0.5002

0.4604

0.4241

0.3606

10

0.7441

0.6756

0.6139

0.5584

0.5083

0.4632

0.4224

0.3855

0.3220

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

1.0927

1.1249

1.1576

1.1910

1.2250

1.2597

1.2950

1.3310

1.4049

4

1.1255

1.1699

1.2155

1.2625

1.3108

1.3605

1.4116

1.4641

1.5735

5

1.1593

1.2167

1.2763

1.3382

1.4026

1.4693

1.5386

1.6105

1.7623

6

1.1941

1.2653

1.3401

1.4185

1.5007

1.5869

1.6771

1.7716

1.9738

7

1.2299

1.3159

1.4071

1.5036

1.6058

1.7138

1.8280

1.9487

2.2107

8

1.2668

1.3686

1.4775

1.5938

1.7182

1.8509

1.9926

2.1436

2.4760

9

1.3048

1.4233

1.5513

1.6895

1.8385

1.9990

2.1719

2.3579

2.7731

10

1.3439

1.4802

1.6289

1.7908

1.9672

2.1589

2.3674

2.5937

3.1058

Future Value of 1

Periods

Present Value of an Annuity of 1 Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

2.8286

2.7751

2.7232

2.6730

2.6243

2.5771

2.5313

2.4869

2.4018

4

3.7171

3.6299

3.5460

3.4651

3.3872

3.3121

3.2397

3.1699

3.0373

5

4.5797

4.4518

4.3295

4.2124

4.1002

3.9927

3.8897

3.7908

3.6048

6

5.4172

5.2421

5.0757

4.9173

4.7665

4.6229

4.4859

4.3553

4.1114

7

6.2303

6.0021

5.7864

5.5824

5.3893

5.2064

5.0330

4.8684

4.5638

8

7.0197

6.7327

6.4632

6.2098

5.9713

5.7466

5.5348

5.3349

4.9676

9

7.7861

7.4353

7.1078

6.8017

6.5152

6.2469

5.9952

5.7950

5.3282

10

8.5302

8.1109

7.7217

7.3601

7.0236

6.7101

6.4177

6.1446

5.6502

Future Value of an Annuity of 1

AppB-376 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.


Full file at http://testbank360.eu/test-bank-managerial-accounting-5th-edition-wil Periods

3%

4%

5%

6%

7%

8%

9%

10%

12%

3

3.0909

3.1216

3.1525

3.1836

3.2149

3.2464

3.2781

3.3100

3.3744

4

4.1836

4.2465

4.3101

4.3746

4.4399

4.5061

4.5731

4.6410

4.7793

5

5.3091

5.4163

5.5256

5.6371

5.7507

5.8666

5.9847

6.1051

6.3528

6

6.4684

6.6330

6.8019

6.9753

7.1533

7.3359

7.5233

7.7156

8.1152

7

7.6625

7.8983

8.1420

8.3938

8.6540

8.9228

9.2004

9.4872

10.089

8

8.8923

9.2142

9.5491

9.8975

10.260

10.637

11.029

11.436

12.300

9

10.159

10.583

11.027

11.491

11.978

12.488

13.021

13.580

14.776

10

11.464

12.006

12.578

13.181

13.816

14.487

15.193

15.937

17.549

The future value of an ________________ annuity is the accumulated value of each annuity payment with interest as of the date of the final payment. Ordinary AACSB: Communication AICPA: BB Industry AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: AppB-P4 Apply future value concepts to an annuity by using interest tables. Topic: Future Value of an Annuity

AppB-377 Copyright Š 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Test bank managerial accounting 5th edition wild  

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