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Future Value of a Lump-Sum Rate of interest per period in percent Periods ½% 3%

ID: 2583547 • Letter: F

Question

Future Value of a Lump-Sum

Rate of interest per period in percent

Periods

½%

3%

5%

6%

8%

9%

10%

12%

15%

20%

3

1.0151

1.0927

1.1576

1.1910

1.2597

1.2950

1.3310

1.4049

1.5209

1.7280

4

1.0202

1.1255

1.2155

1.2625

1.3605

1.4116

1.4641

1.5735

1.7490

2.0736

5

1.0253

1.1593

1.2783

1.3382

1.4693

1.5386

1.6105

1.7623

2.0114

2.4883

6

1.0304

1.1941

1.3401

1.4185

1.5869

1.6771

1.7716

1.9738

2.3131

2.9860

7

1.0355

1.2299

1.4071

1.5036

1.7138

1.8280

1.9487

2.2107

2.6600

3.5832

8

1.0407

1.2668

1.4775

1.5939

1.8510

1.9926

2.1436

2.4760

3.0590

4.2998

9

1.0459

1.3048

1.5513

1.6895

1.9990

2.1719

2.3579

2.7731

3.5179

5.1598

10

1.0511

1.3439

1.6289

1.7909

2.1589

2.3674

2.5938

3.1059

4.0456

6.1917

12

1.0617

1.4257

1.7959

2.0122

2.5182

2.8127

3.1384

3.8960

5.3503

8.9161

15

1.0777

1.5580

2.0789

2.3966

3.1722

3.6425

4.1773

5.4736

8.1371

15.4070

16

1.0831

1.6047

2.1829

2.5404

3.4259

3.9703

4.5950

6.1304

9.3576

18.4884

17

1.0885

1.6529

2.2920

2.6928

3.7000

4.3276

5.0545

6.8660

10.7613

22.1861

18

1.0939

1.7024

2.4066

2.8543

3.9960

4.7171

5.5599

7.6900

12.3755

26.6233

19

1.0994

1.7535

2.5270

3.0256

4.3157

5.1417

6.1159

8.6128

14.2318

31.9480

20

1.1049

1.8061

2.6533

3.2071

4.6610

5.6044

6.7275

9.6463

16.3665

38.3376

21

1.1104

1.8603

2.7860

3.3996

5.0338

6.1088

7.4002

10.8038

18.8215

46.0051

22

1.1160

1.9161

2.9253

3.6035

5.4365

6.6586

8.1403

12.1003

21.6447

55.2061

23

1.1216

1.9736

3.0715

3.8197

5.8715

7.2579

8.9543

13.5523

24.8915

66.2474

24

1.1272

2.0325

3.2251

4.0489

6.3412

7.9111

9.8497

15.1786

28.6252

79.4969

25

1.1328

2.0938

3.3864

4.2919

6.8485

8.6231

10.8347

17.0001

32.9190

95.3962

60

1.3489

5.8916

18.6792

32.9877

101.257

176.031

304.482

897.597

4383.99

56347.5

Present Value of a Lump-Sum

Rate of interest per period in percent

Periods

½%

3%

5%

6%

8%

9%

10%

12%

15%

20%

3

0.9852

0.9151

0.8638

0.8396

0.7938

0.7722

0.7513

0.7118

0.6575

0.5787

4

0.9803

0.8885

0.8227

0.7920

0.7350

0.7084

0.6830

0.6355

0.5718

0.4823

5

0.9754

0.8626

0.7835

0.7473

0.6806

0.6499

0.6209

0.5674

0.4972

0.4019

6

0.9705

0.8375

0.7462

0.7050

0.6311

0.5963

0.5645

0.5066

0.4323

0.3349

7

0.9657

0.8131

0.7107

0.6651

0.5835

0.5470

0.5132

0.4523

0.3759

0.2791

8

0.9609

0.7894

0.6768

0.6274

0.5403

0.5019

0.4665

0.4039

0.3269

0.2326

9

0.9561

0.7664

0.6446

0.5919

0.5003

0.4604

0.4241

0.3606

0.2843

0.1938

10

0.9514

0.7441

0.6139

0.5584

0.4632

0.4224

0.3855

0.3220

0.2472

0.1615

12

0.9419

0.7014

0.5568

0.4970

0.3971

0.3555

0.3186

0.2567

0.1869

0.1122

15

0.9279

0.6419

0.4810

0.4173

0.3152

0.2745

0.2394

0.1827

0.1229

0.0649

16

0.9233

0.6232

0.4581

0.3937

0.2919

0.2519

0.2176

0.1631

0.1069

0.0541

17

0.9187

0.6050

0.4363

0.3714

0.2703

0.2311

0.1978

0.1456

0.0929

0.0451

18

0.9141

0.5874

0.4155

0.3503

0.2503

0.2120

0.1799

0.1300

0.0808

0.0376

19

0.9096

0.5703

0.3957

0.3305

0.2317

0.1945

0.1635

0.1161

0.0703

0.0313

20

0.9051

0.5537

0.3769

0.3118

0.2146

0.1784

0.1486

0.1037

0.0611

0.0261

21

0.9006

0.5375

0.3589

0.2942

0.1987

0.1637

0.1351

0.0926

0.0531

0.0217

22

0.8961

0.5219

0.3418

0.2775

0.1839

0.1502

0.1228

0.0826

0.0462

0.0181

23

0.8917

0.5067

0.3256

0.2618

0.1703

0.1378

0.1117

0.0738

0.0402

0.0151

24

0.8872

0.4920

0.3101

0.2470

0.1577

0.1264

0.1015

0.0659

0.0349

0.0126

25

0.8828

0.4776

0.2953

0.2330

0.1460

0.1160

0.0923

0.0588

0.0304

0.0105

60

0.7414

0.1697

0.0535

0.0303

0.0099

0.0057

0.0033

0.0011

0.0002

0.0001

Future Value of an Annuity

Rate of interest per period in percent

Periods

½%

3%

5%

6%

8%

9%

10%

12%

15%

20%

3

3.0150

3.0909

3.1525

3.1836

3.2464

3.2781

3.3100

3.3744

3.4725

3.6400

4

4.0301

4.1836

4.3101

4.3746

4.5061

4.5731

4.6410

4.7793

4.9934

5.3680

5

5.0503

5.3091

5.5256

5.6371

5.8667

5.9847

6.1051

6.3529

6.7424

7.4416

6

6.0755

6.4684

6.8019

6.9753

7.3359

7.5233

7.7156

8.1152

8.7538

9.9299

7

7.1059

7.6625

8.1420

8.3938

8.9228

9.2004

9.4872

10.0890

11.0668

12.9159

8

8.1414

8.8923

9.5491

9.8975

10.6366

11.0285

11.4359

12.2997

13.7268

16.4991

9

9.1821

10.1591

11.0266

11.4913

12.4876

13.0210

13.5795

14.7757

16.7858

20.7989

10

10.2280

11.4639

12.5800

13.1808

14.4866

15.1929

15.9374

17.5487

20.3037

25.9587

12

12.3356

14.1920

15.9171

16.8699

18.9771

20.1407

21.3843

24.1331

29.0017

39.5805

15

15.5366

18.5990

21.5786

23.2760

27.1521

29.3609

31.7725

37.2797

47.5804

72.0351

16

16.6142

20.1569

23.6575

25.6725

30.3243

33.0034

35.9497

42.7533

55.7175

87.4421

17

17.6973

21.7616

25.8404

28.2189

33.7502

36.9737

40.5447

48.8837

65.0751

105.931

18

18.7858

23.4144

28.1324

30.9057

37.4502

41.3013

45.5992

55.7497

75.8364

128.117

19

19.8797

25.1169

30.5390

33.7599

41.4463

46.0185

51.1591

63.4397

88.2118

154.740

20

20.9791

26.8704

33.0659

36.7856

45.7620

51.1601

57.2750

72.0524

102.444

186.688

21

22.0840

28.6765

35.7193

39.9927

50.4229

56.7645

64.0025

81.6987

118.810

225.026

22

23.1944

30.5368

38.5052

43.3923

55.4568

62.8733

71.4027

92.5026

137.632

271.031

23

24.3104

32.4529

41.4305

46.9958

60.8933

69.5319

79.5430

104.603

159.276

326.237

24

25.4320

34.4265

44.5020

50.8156

66.7648

76.7898

88.4973

118.155

184.168

392.484

25

26.5591

36.4593

47.7271

54.8645

73.1059

84.7009

98.3471

133.334

212.793

471.981

60

69.7700

163.053

353.584

533.128

1253.21

1944.79

3034.82

7471.64

29219.9

281732

Present Value of an Annuity

Rate of interest per period in percent

Periods

½%

3%

5%

6%

8%

9%

10%

12%

15%

20%

3

2.9703

2.8286

2.7233

2.6730

2.5771

2.5313

2.4869

2.4018

2.2832

2.1065

4

3.9505

3.7171

3.5460

3.4650

3.3121

3.2397

3.1699

3.0374

2.8550

2.5887

5

4.9259

4.5797

4.3295

4.2125

3.9927

3.8897

3.7908

3.6048

3.3522

2.9906

6

5.8964

5.4172

5.0757

4.9173

4.6229

4.4859

4.3553

4.1114

3.7845

3.3255

7

6.8621

6.2303

5.7864

5.5824

5.2064

5.0330

4.8684

4.5638

4.1604

3.6046

8

7.8230

7.0197

6.4632

6.2098

5.7466

5.5348

5.3349

4.9676

4.4873

3.8372

9

8.7791

7.7861

7.1078

6.8017

6.2469

5.9953

5.7590

5.3283

4.7716

4.0310

10

9.7304

8.5302

7.7217

7.3601

6.7101

6.4177

6.1446

5.6502

5.0188

4.1930

12

11.6189

9.9540

8.8633

8.3838

7.5361

7.1607

6.8137

6.1944

5.4206

4.4392

15

14.4166

11.9379

10.3797

9.7123

8.5595

8.0607

7.6061

6.8109

5.8474

4.6755

16

15.3399

12.5611

10.8378

10.1059

8.8514

8.3126

7.8237

6.9740

5.9542

4.7296

17

16.2586

13.1661

11.2741

10.4773

9.1216

8.5436

8.0215

7.1196

6.0472

4.7746

18

17.1728

13.7535

11.6896

10.8276

9.3719

8.7556

8.2014

7.2497

6.1280

4.8122

19

18.0824

14.3238

12.0853

11.1581

9.6036

8.9501

8.3649

7.3658

6.1982

4.8435

20

18.9874

14.8775

12.4622

11.4699

9.8182

9.1286

8.5135

7.4694

6.2593

4.8696

21

19.8880

15.4150

12.8212

11.7641

10.0168

9.2922

8.6487

7.5620

6.3125

4.8913

22

20.7841

15.9369

13.1630

12.0416

10.2007

9.4424

8.7715

7.6446

6.3587

4.9094

23

21.6757

16.4436

13.4886

12.3034

10.3711

9.5802

8.8832

7.7184

6.3988

4.9245

24

22.5629

16.9355

13.7986

12.5504

10.5288

9.7066

8.9847

7.7843

6.4338

4.9371

25

23.4456

17.4132

14.0939

12.7834

10.6748

9.8226

9.0770

7.8431

6.4641

4.9476

60

51.7255

27.6756

18.9293

16.1614

12.3766

11.0480

9.9672

8.3241

6.6652

4.9999

Future Value of a Lump-Sum

Explanation / Answer

Lease Liability = annual lease payments xCumulative Present Value of an Annuity @20% for 10 year

= $10,000 x 4.1930 = $41,930

Date Payment Interest Reduction in principal Lease Liability 01-01-2018 $41,930 31-12-2018 $10,000 $41,930 x 10%
= $4,193 $10,000 - $4,193
=$5,807 $36,123 31-12-219 $10,000 $36,123 x 10%
= $3,612 $10,000 - $3,612
=$6,388 $29,735