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TABLE 6-4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 In) 11% 15% 10% 89286 91743

ID: 2498594 • Letter: T

Question

TABLE 6-4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 In) 11% 15% 10% 89286 91743 1.75911 2.53130 3.23972 1.62571 2.44371 3.10245 2.40183 3.03735 2.57710 3.99271 4.62288 5.74664 6.71008 2.85498 448592 .86842 5.03295 5.99525 3.79079 4.35526 4.35526 471220 498784 4.77158 4.11141 4.56376 4.48732 5.01877 5.23371 5.56315 5.84737 5.14612 5.75902 5.93770 6.19437 7.53608 7.90378 7.16073 1.48690 3 7.19087 7.78615 6.74987 6.98187 6.62817 6.81086 5.95424 6.04716 6.12797 6.97399 7.37916 7.54879 7.70162 8.31256 7.82371 7.24967 7.36578 8.54363 7.83929 46944 12184 11963 8.95012 9.12855 9.60360 8.51356 9.81815 10.01680 10.20074 10.52876 10.674 8.17574 9.2224 8.77154 8.28843 1.74326.4415 6.31246 64466.39884 6.43377 9.44243 7.71843 7.84314 7.89566 9.70861 9.82258 8.98474 9.07704 8.34814 8.42174 25 10.27365 939 860 7.9425s649056 8.69379 8.7331 48808 .94255 53351 16095 54780 98442 6.55088 0.80998 10.02658 9.67 65011 8.05518 9.92897 9222 60162 0218 58598 27 28 29 8.51353 11.15841 0.34280 9.526388.80054 8.15666 6.61681 6.57911 9.47901 1.43500 0.46444 9.80858 8.85524 8.11159 11.51389 6.80910 10.51784 35 9.64416 11.65457 1.71719 11.77518 6.62314 6.63375 6.64178 8.19241 8.20751 10.61176 10.65299 9.73265 8.91859 10.72552 10.75736 9.75697 9.77905 8.23303 8.24378 11.87858 Reduction of Princip Receivable/ Liabilit Rent Receipt/ Payment Interest Revenue/ Expense 12/31/14 12/31/15 12/31/16

Explanation / Answer

The amortization schedule is given below:

Annual Lease Rent for a 9% return = 80900/PVIFA(9,3) = 80900/2.53130= 31960$