Present and future value tables of $1 at 3% are presented below: N FV $1 PV $1 F

Question

Present and future value tables of $1 at 3% are presented below:

N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000       0.97087       1.0300       1.00000       2 1.06090 0.94260 2.0300       1.91347       2.0909       1.97087       3 1.09273 0.91514 3.0909       2.82861       3.1836       2.91347       4 1.12551 0.88849 4.1836       3.71710       4.3091       3.82861       5 1.15927 0.86261 5.3091       4.57971       5.4684       4.71710       6 1.19405 0.83748 6.4684       5.41719       6.6625       5.57971       7 1.22987 0.81309 7.6625       6.23028       7.8923       6.41719       8 1.26677 0.78941 8.8923       7.01969       9.1591       7.23028       9 1.30477 0.76642 10.1591       7.78611       10.4639       8.01969       10 1.34392 0.74409 11.4639       8.53020       11.8078       8.78611       11 1.38423 0.72242 12.8078       9.25262       13.1920       9.53020       12 1.42576 0.70138 14.1920       9.95400       14.6178       10.25262       13 1.46853 0.68095 15.6178       10.63496       16.0863       10.95400       14 1.51259 0.66112 17.0863       11.29607       17.5989       11.63496       15 1.55797 0.64186 18.5989       11.93794       19.1569       12.29607       16 1.60471 0.62317 20.1569       12.56110       20.7616       12.93794      

Explanation / Answer

The amount of each payment = $33,153

Borrowed Money = $3,30,000

Number of years = 12 Years (6 Years x 2)

Interest Rate         = 3% (6%/2)

Present Value Annuity factor at 3% for 12 Years from the Table given = 9.95400     

Amount of each payment = $3,30,000 / 9.95400                                

                                           = $33,152.50

                                           = or $33,153 (Rounded)

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.