TP6265

I SEE THE LIGHT

www.cybertext.com, The Book List,
Building Blocks of Accounting--A
Managerial Perspective, Enter
password, Upload Your Excel File.
Tianyang, when you are ready to have your work graded you will upload thisTP6265.xls,
f or TP6265.xlsx,
Keep two copies of your spreadsheet in
to the same screen that the project was downloaded from:
two separate places in case one of Big
Al's competitors sends someone to
destroy your work or it is lost in
transmission.

You may find it easier to work on this

project if you print a hard copy of all the
pages.

There are alternative methods of

solving problems. To insure similar
answers and to guarantee that you are
graded correctly please follow the
instructions as to rounding.

NOTE:
If there are any questions about the
project e-mail
markfriedman@miami.edu or call
305.284.6296.
Grade will be based upon answers
entered into the shaded boxes.

F820 100721
FAQ 01 What is the difference between rounding a number and rounding up a number?

Given: Cost of a Taxi $100.00

Number of Passengers 3

Find Cost per Passenger

Without rounding $33.333333 =C3/C4
Rounding to two decimals $33.330000 =ROUND(C3/C4,2)
Roundup to two decimals $33.340000 =ROUNDUP(C3/C4,2)

FAQ 02 When I upload it, the results show that I have an answer wrong, yet that answer is needed for another
question which is marked correct.
The computer is giving you part credit.
Given: Width 10 ft
Length 12 ft
Cost per sq. ft. $6

Find {1.1} Area ----- 100 sq ft (wrong)

{1.2} Cost ---- $600 correct based on the wrong area. Note if the area is corrected,120 sq ft, the cost would be wrong.
 FIRST LAST number File
Tianyang Peng 6265 TP6265

I SEE THE LIGHT

Background Information

I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's

lamps/nightlights for use in bedrooms. These lamps are sold nationwide through a group of
independent sales representatives who have an exclusive sales region. The business is in its tenth
year and has asked you to assist in planning for next year's operations.

The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful
colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in
China where a mold is created and a sample produced and hand painted. If the mold meets the
expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts
required to complete one lamp; a figurine, a lamp shade and the required electrical components.
There are presently 10 different figurines that come in six different colors; 60 models.

There are presently 10 workers in the plant. They are responsible for receiving the raw material,
manufacturing the product, packing and shipping. In addition to Big Al there are two office workers
who are responsible for all administrative duties.

Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on
page two. Big Al heard about your skills in managerial accounting and would like your assistance in
the following areas:

Part 1 Fixed and Variable Cost Determinations - Unit Cost Calculations

Part 2 Cost Volume Relationships - Profit Planning
Part 3 Budgets
Part 4 Process Costing
Part 5 Job Order Costing
Part 6 Standard Costing - Variance Analysis
Part 7 Capital Decision Making

To upload your work to Big Al the file without changing the name. Pay attention to the specific
location that Excel saves the file. Return to the bottom of the page that you downloaded the file from;
Cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter
password, Upload Your Excel File. If you upload an old version of the file the results will not update.

Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors
sends someone to destroy your work or it is lost in transmission.

You may find it easier to work on this project if you print a hard copy of all the pages.

NOTE:
If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296.
Grade will be based upon answers entered into the shaded boxes.
 Page 2

I See The Light

Projected Income Statement
For the Period Ending December 31, 20x1

Sales 25,000 lamps @ $45.00 $ 1,125,000.00

Cost of Goods Sold @ $30.00 750,000.00
Gross Profit $ 375,000.00
Selling Expenses:
Fixed $ 23,000.00
Variable (Commission per unit) @ $3.00 75,000.00 $ 98,000.00
Administrative Expenses:
Fixed $ 42,000.00
Variable @ $2.00 50,000.00 92,000.00
Total Selling and Administrative Expenses: 190,000.00
Net Profit $ 185,000.00

I See The Light

Projected Balance Sheet
As of December 31, 20x1

Current Assets
Cash $ 34,710.00
Accounts Receivable 67,500.00
Inventory
Raw Material
Lamp Kits 500 @ $16.00 8,000.00
Work in Process 0 -
Finished Goods 3000 @ $30.00 90,000.00
Total Current Assets $ 200,210.00

Fixed Assets
Equipment $ 20,000.00
Accumulated Depreciation 6,800.00
Total Fixed Assets 13,200.00
Total Assets $ 213,410.00

Current Liabilities
Accounts Payable $ 54,000.00
Total Liabilities $ 54,000.00
Stockholder's Equity
Common Stock $ 12,000.00
Retained Earnings 147,410.00
Total Stockholder's Equity 159,410.00
Total Liabilities and Stockholder's Equity $ 213,410.00
 Page 3

Tianyang Peng
6540

PART 1
Fixed and Variable Cost Determinations
Unit Cost Calculations

The projected cost of a lamp is calculated based upon the projected increases or decreases to
current costs. The present costs to manufacture one lamp are:

Lamp Kit: $16.0000000 per lamp

Direct Labor: 2.0000000 per lamp (4 lamps/hr.)
Variable Overhead: 2.0000000 per lamp
Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps)

Cost per lamp: $30.0000000 per lamp

Expected increases for 20x2

When calculating projected increases round to TWO ($0.00) decimal places.

1. Material Costs are expected to increase by 2.50% .

2. Labor Costs are expected to increase by 5.00%.

3. Variable Overhead is expected to increase by 2.00%.

4. Fixed Overhead is expected to increase to $285,000.

5. Fixed Administrative expenses are expected to increase to $54,000.

6. Variable selling expenses (measured on a per lamp basis) are expected to increase
by 4.50%.

7. Fixed selling expenses are expected to be $23,000 in 20x2.

8. Variable administrative expenses (measured a per lamp basis) are expected to

increase by 4.00%.

On the following schedule develop the following figures:

1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp.

2- 20x2 Projected Variable Unit Cost per lamp.

3- 20x2 Projected Fixed Costs.

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Tianyang Peng
6540

I See The Light, Inc

Schedule of Projected Costs

Variable Manufacturing Unit Cost

20x1 Cost Projected
20x2 Cost Rounded to 2
Percent
Decimal Places
Increase
Lamp Kit $16.40 {4.01}
Labor $2.10 {4.02}
Variable Overhead $2.04 {4.03}

Projected Variable Manufacturing Cost Per Unit $20.54 {4.04}

Total Variable Cost Per Unit

20x1 Cost Projected
20x2 Cost Rounded to 2
Percent
Decimal Places
Increase
Variable Selling 3.14 {4.05}
Variable Administrative 2.08 {4.06}
Projected Variable Manufacturing Unit Cost 20.54 {4.04}

Projected Total Variable Cost Per Unit 25.76 {4.07}

Schedule of Fixed Costs

20x1 Cost Projected 20x2 Cost
Percent
Increase
Fixed Overhead $ 285,000.00 {4.08}
(normal capacity of _________ lamps @ __ )
Fixed Selling $ 23,000.00 {4.09}
Fixed Administrative $ 54,000.00 {4.10}

Projected Total Fixed Costs $ 362,000.00 {4.11}

 Page 5

PART 2
Cost Volume Relationships -
Profit Planning
Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis
based on the following assumptions.
Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round
up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the
number of units and then multiply by the selling price per unit.

1. For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution
margin ratio for each lamp sold?

Contribution Margin per unit (Round to two places, $##.##) $19.24 {5.01}

Contribution Margin Ratio (Round to four places,% is two of those places ##.##%) 42.76% {5.02}

2. For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $200,000 . What
would sales in units have to be in 20x2 to reach the profit goal?

Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 29,210 units {5.03}

3. For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $35,000.00 how many lamps
must be sold to breakeven?

Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 20,635 units {5.04}
 Page 6

Tianyang Peng
6540

4. For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $3.50 a unit how many lamps
must be sold to breakeven?

Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 22,999 units {6.01}

5. For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $3.50 a unit how many lamps
must be sold to breakeven?

Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 15,920 units {6.02}

6. If for 20x2 the selling price per lamp is increased to $48.50 a unit how many lamps must be sold
to breakeven?

Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 15,920 units {6.03}

7. If for 20x2 the selling price per lamp is decreased to $41.50 a unit how many lamps must be sold
to breakeven?

Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 22,999 units {6.04}
 Page 7

Tianyang Peng
6540

PART 3
Budgets

Division N has decided to develop its budget based upon projected sales of 35,000 lamps at
$51.00 per lamp.
The company has requested that you prepare a master budget for the year. This budget is to be used
for planning and control of operations and should be composed of:

1. Production Budget

2. Materials Budget

3. Direct Labor Budget

4. Factory Overhead Budget

5. Selling and Administrative Budget

6. Cost of Goods Sold Budget

7. Budgeted Income Statement

8. Cash Budget

Notes for Budgeting:

The company wants to maintain the same number of units in the beginning and ending inventories of
work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 525 pieces and
decreasing the finished goods by 20%.

Complete the following budgets

1 Production Budget

Planned Sales
Desired Ending Inventory of Finished Goods
Total Needed
Less: Beginning Inventory

Total Production 34,400 units {7.01}

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Tianyang Peng
6540

2 Materials Budget

Lamp Kits
Needed for Production 34,400 units {8.01}
Desired Ending Inventory 525 units {8.02}
Total Needed 34,925 units {8.03}
Less: Beginning Inventory 500 units {8.04}
Total Purchases 34425
Cost per piece $ 16.40 {8.05}
Cost of Purchases (Round to two places, $##.##) $ 564,570.00 {8.06}

3 Direct Labor Budget

Labor Cost Per Lamp $ 2.10 {8.07}

Production 34,400 units
Total Labor Cost (Round to two places, $##.##) $ 72,240.00 {8.08}

4 Factory Overhead Budget

Variable Factory Overhead: 2.04

Variable Factory Overhead Cost Per Unit $ 2.0400000
Number of Units to be Produced 34,400 units
Total Variable Factory Overhead (Round to two places, $##.##) $ 70,176.00 {8.09}
Fixed Factory Overhead $ 285,000.00 {8.10}

Total Factory Overhead (Round to two places, $##.##) $ 355,176.00 {8.11}

 Page 9

Tianyang Peng
6540

4 Factory Overhead Budget

Overhead Allocation rate based on:

1. Number of Units 34400
Total Factory Overhead / Number of Units
(Round to two places, $##.##) $10.32 {9.01}

5 Cost of making one unit next year

Cost of one Lamp Kit 16.4
Labor Cost Per Lamp $2.10 {9.02}
Cost of Factory overhead per unit 10.32
Goods
Sold Total cost of one unit $ 28.82 {9.03}
Budget (Round to two places, $##.##)
-
Assume
FIFO
6 Selling
(First-In,and Admin. Budget
First-
Out)
Fixedand
Selling 23000
overhea
Variable Selling (Round to two places, $##.##) $109,900.00 {9.04}
d is Administrative
Fixed 54000
applied
Variable Administrative (Round to two places, $##.##) $ 72,800.00 {9.05}
based
Total
on theSelling and Administrative (Round to two places, $##.##) $ 259,700.00 {9.06}
number
of units
to be
7
produce Round dollars to two
d. places, $##.##
Beginning Inventory, Finished Goods $ 90,000.00 {9.07}
Production Costs: $ 991,408.000
Materials:
Lamp Kits:
Beginning Inventory $ 8,000.000
Purchased $ 564,570.000
Available for Use $ 572,570.000
Ending Inventory of Lamp Kits $ 8,610.00 {9.08}
Lamp Kits Used In Production 563960

Total Materials: $ 563,960.00 {9.09}

Labor $ 72,240.00 {9.10}
Overhead $ 355,176.00 {9.11}
Cost of Goods Available $ 1,081,376.00 {9.12}
Less: Ending Inventory, Finished Goods $ 69,168.00 {9.13}
Cost of Goods Sold $ 1,012,208.00 {9.14}
 Page 10

Tianyang Peng
6540

7 Budgeted Income Statement

Sales $ 1,785,000.00
Cost of Goods Sold $ 1,012,208.00
Gross Profit
Selling Expenses & Admin. Expenses $259,700.00
Net Income $ 513,092.00 ###

8 Cash Budget

Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and
Payables of 12/31/x1 will have a cash impact in 20x2.)

1. 21.00% of sales for the year are made in November and December. Since our customers have 60 day terms
those funds will be collected be collected in January and February.
2. 81.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February.
3. All other manufacturing and operating costs are paid for when incurred.
4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses.
5. Minimum Cash Balance needed for 20x2, $150,000 .
I See The Light
Projected Cash Budget
For the Year Ending December 31, 20x2

Round dollars to two

places, $##.##
Beginning Cash Balance $ 34,710.000
Cash Inflows:
Sales Collections:
Account Receivable (Sales last year not collected) $ 67,500.00 ###
Sales made and collected in 20x2 $ 1,410,150.00 ###
Cash Available $ 1,512,360.00 ###

Cash Outflows:
Purchases
Accounts Payable (Purchases last year) $ 54,000.000
Purchases made and paid for in 20x2 $ 457,301.70 ###
Other Manufacturing Costs $ 355,176.000
Direct Labor $ 72,240.000
Total Manufacturing Overhead $ 938,717.700
Selling and Administrative $ 259,700.00
Less: Depreciation $ 2,172.00 ###
Total Cash Outflows $ 1,196,245.70 ###

Budgeted Cash Balance before financing $ 316,114.30 ###

Needed Minimum Balance $ 150,000.000

Amount to be borrowed (if any) $ - ###

Budgeted Cash Balance $ 316,114.30 ###

 Page 11

Tianyang Peng
6540

PART 4
Process Costing - Weighted Average

General Information

The I See The Light Company has a related company that produces the figurines. They use process costing
in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars.
The material is added at the beginning of the process. The labor and overhead costs are assumed
to be added uniformly throughout.

Month of January

Selected information for January is presented below. Note that the applied overhead rate was
50% of direct labor costs in the molding department.

Molding Department

Goods in-process as of January 1 were 3,300 figurines at a cost of $41,718.00. Of this amount, $4,818.00 was from
raw materials added, $24,600.00 for labor and $12,300.00 for overhead. These 3,300 figurines were assumed to be
50.00% complete as to labor and overhead.

During January, 24,000 units were started, $38,316.00 of materials and $42,090.00 of labor costs were incurred.

The 6,500 figurines that were in-process at the end of January were assumed to be 60.00% complete to
labor and overhead.

All figurines in January passed inspection.

 Page 12

January

MOLDING

Physical Flow of Units

Work-in-Process - Beginning 3,300 units

Units Started this Period 24,000 units
Units to Account for 27,300 units

Total transferred out 20,800 units {12.01}

Work-in-Process - Ending 6,500 units {12.02}
Total Accounted for 27,300 units

Equivalent Units Material (Round to two places, ##,###.##) 27,300.00 {12.03}

Equivalent Units Conversion (Round to two places, ##,###.##) 24,700.00 {12.04}

Total cost of Material (Round to two places, ##.###.##) $ 43,134.00 {12.05}

Total cost of Conversion (Round to two places, ##.###.##) $ 100,035.00 {12.06}

Total cost to account for (Round to two places, ##.###.##) $ 143,169.00 {12.07}

Cost per equivalent unit of Material (Round to two places, ###.##) $ 1.58 {12.08}

Cost per equivalent unit of Conversion (Round to two places, ###.##) $ 4.05 {12.09}

Cost of the ending inventory, material and convesion (Round to two places, $###,###.## ) $ 26,065.00 {12.10}

Cost of the units transferred, material and convesion (Round to two places, $###,###.## ) $ 117,104.00 {12.11}
 Page 13

Tianyang Peng
6540

PART 5

Job Order Costing

To keep records of the actual cost of a special order job, a Job Order Cost System has been developed.
Overhead is applied at the rate of 50% of the direct labor cost.

Job Order Costing Section

On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The
job called for 4,000 customized lamps. The following set of transactions occurred from
January 5 until the job was completed:

5-Jan Purchased 4,000 Lamp Kits @ $16.45 per kit.

9-Jan 4,175 sets of Lamp Kits were requisitioned.
17-Jan Payroll of 610 Direct Labor Hours @ $9.40 per hour.
30-Jan Payroll of 660 Direct Labor Hours @ $9.65 per hour.
30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were
used or scrapped, and are a cost of normal processing.

Month End Overhead Information

Actual Variable Manufacturing Overhead $ 1,193.80
Actual Fixed Manufacturing Overhead $ 40,623.45

Round to two places,

$##.##

Cost of Direct Material Incurred in Manufacturing Job 2407

$ 68,678.75 {13.01}

Cost of Direct Labor Incurred in Manufacturing Job 2407

$ 12,103.00 {13.02}

Cost of Manufacturing Overhead Applied to Job 2407

$ 6,051.50 {13.03}

Cost of manufacturing one lamp

$ 21.76 {13.04}
 Page 14

Tianyang Peng
6540

PART 6

Standard Job Order Costing -

Variance Analysis

Special order lamps are manufactured in division S. Because of the precise nature of the process a
standard cost system has been developed. The following standards are used for the special orders:

Standards
Lamp Kits $ 16.000000 per lamp
Direct Labor 2.400000 per lamp (4 lamps/hr.)
Variable Overhead 0.250000 per lamp (4 lamps/hr.)
** Fixed Overhead 10.000000 per lamp
Total $ 28.650000

** Fixed overhead is based on expected production of 4,011 customized lamps each month.

To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries
are made to the Job Order System at actual cost (overhead is applied based on actual labor hours)
while entries are made to the accounting system at standard. Variance analysis is used to analyze the
differences.

Job Order Costing Section

On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The
job called for 4,000 customized lamps. The following set of transactions occurred from
January 5 until the job was completed:

5-Jan Purchased 4,000 Lamp Kits @ $16.45 per kit.

9-Jan 4,175 sets of Lamp Kits were requisitioned.
17-Jan Payroll of 610 Direct Labor Hours @ $9.40 per hour.
30-Jan Payroll of 660 Direct Labor Hours @ $9.65 per hour.
30-Jan 3,989 lamps were completed and shipped. All materials requisitioned were
used or scrapped.

Month End Overhead Information

Actual Variable Overhead $ 1,193.80
Actual Fixed Overhead $ 40,623.45
 Page 15

Tianyang Peng
6540

How many Lamps were completed? 3,989 lamps

Note: Show favorable variances as negative numbers

Round dollars to
two places, $##.##

What was the total material price variance for the Lamp Kits purchased? 4000 $ 1,800.00 {15.01}
16.45
65800
16
What was the material usage variance for Lamp Kits? 64000 $ 2,976.00 {15.02}
4175 3,989.00
610 9.40
660 9.65
9.60
12103 12,192.00

What was the direct labor efficiency variance ? $ 2,618.40 {15.03}

3989 9,573.60
What was the direct labor rate variance? $ (89.00) {15.04}
 Page 16

Tianyang Peng
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Note: Show favorable variances as negative numbers

1270
997.25

What was the variable overhead efficiency variance ? $ 272.75 ###

3989 4011

$ 1,193.80
What was the variable OH spending variance ? $ (76.20) ###

What is the fixed OH volume (denominator) variance? $ 220.00 ###

40110 $ 40,623.45
What is the fixed OH spending variance? $ 513.45 ###
 Page 17

Tianyang Peng
6540

PART 7

Capital Decision Making

Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a
cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker.
He has priced a machine at a national member only warehouse for $2,100. The machine should be
usable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the
dump. Big Al believes that 11 cans a day will be purchased. The plant is open five days a week, 50
weeks per year. A case of soda (24 cans) costs $5.52 and Big Al believes that a price of $.80 per
can would win him good will.

What is the estimated annual sales in cans of soda?

2,750 cans {17.01}

What is the contribution margin per can of soda? (rounded to two places, $#.##)

$ 0.57 {17.02}

How many cans of soda must be sold each year to breakeven? (Round up to zero places, ###,### cans)

1,229 cans {17.03}

Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##)

$ 1,567.50 {17.04}

What is the payback period in years? (rounded to two places, #.## years)

1.34 years {17.05}

If the time value of money is 12% per year what is the net present value? Use the tables on page 18.

2.402

$ 1,665.14 {17.06}

What is the internal rate of return. Pick the closest interest rate from the tables on page 18.

54.50% {17.07}
 Page 18

Present Value of Annuity $1.00 in Arrears

3 Periods
Interest Periods Interest Periods

Rate 3 4 5 6 Rate 3 4 5 6
2.0% 2.884 3.808 4.713 5.601 50.5% 1.399 1.594 1.724 1.810
2.5% 2.856 3.762 4.646 5.508 51.0% 1.391 1.584 1.711 1.795
3.0% 2.829 3.717 4.580 5.417 51.5% 1.383 1.573 1.698 1.781
3.5% 2.802 3.673 4.515 5.329 52.0% 1.375 1.563 1.686 1.767
4.0% 2.775 3.630 4.452 5.242 52.5% 1.368 1.553 1.674 1.753
4.5% 2.749 3.588 4.390 5.158 53.0% 1.360 1.542 1.662 1.740
5.0% 2.723 3.546 4.329 5.076 53.5% 1.352 1.532 1.650 1.726
5.5% 2.698 3.505 4.270 4.996 54.0% 1.345 1.523 1.638 1.713
6.0% 2.673 3.465 4.212 4.917 54.5% 1.337 1.513 1.626 1.700
6.5% 2.648 3.426 4.156 4.841 55.0% 1.330 1.503 1.615 1.687
7.0% 2.624 3.387 4.100 4.767 55.5% 1.323 1.494 1.604 1.674
7.5% 2.601 3.349 4.046 4.694 56.0% 1.315 1.484 1.592 1.662
8.0% 2.577 3.312 3.993 4.623 56.5% 1.308 1.475 1.581 1.649
8.5% 2.554 3.276 3.941 4.554 57.0% 1.301 1.466 1.570 1.637
9.0% 2.531 3.240 3.890 4.486 57.5% 1.294 1.457 1.560 1.625
9.5% 2.509 3.204 3.840 4.420 58.0% 1.287 1.447 1.549 1.613
10.0% 2.487 3.170 3.791 4.355 58.5% 1.280 1.439 1.539 1.602
10.5% 2.465 3.136 3.743 4.292 59.0% 1.273 1.430 1.528 1.590
11.0% 2.444 3.102 3.696 4.231 59.5% 1.266 1.421 1.518 1.579
11.5% 2.423 3.070 3.650 4.170 60.0% 1.260 1.412 1.508 1.567
12.0% 2.402 3.037 3.605 4.111 60.5% 1.253 1.404 1.498 1.556
12.5% 2.381 3.006 3.561 4.054 61.0% 1.247 1.395 1.488 1.545
13.0% 2.361 2.974 3.517 3.998 61.5% 1.240 1.387 1.478 1.534
13.5% 2.341 2.944 3.475 3.943 62.0% 1.234 1.379 1.468 1.524
14.0% 2.322 2.914 3.433 3.889 62.5% 1.227 1.371 1.459 1.513
14.5% 2.302 2.884 3.392 3.836 63.0% 1.221 1.362 1.449 1.503
15.0% 2.283 2.855 3.352 3.784 63.5% 1.214 1.354 1.440 1.492
15.5% 2.264 2.826 3.313 3.734 64.0% 1.208 1.347 1.431 1.482
16.0% 2.246 2.798 3.274 3.685 64.5% 1.202 1.339 1.422 1.472
16.5% 2.228 2.770 3.236 3.636 65.0% 1.196 1.331 1.413 1.462
17.0% 2.210 2.743 3.199 3.589 65.5% 1.190 1.323 1.404 1.452
17.5% 2.192 2.716 3.163 3.543 66.0% 1.184 1.316 1.395 1.443
18.0% 2.174 2.690 3.127 3.498 66.5% 1.178 1.308 1.386 1.433
18.5% 2.157 2.664 3.092 3.453 67.0% 1.172 1.301 1.378 1.424
19.0% 2.140 2.639 3.058 3.410 67.5% 1.166 1.293 1.369 1.414
19.5% 2.123 2.613 3.024 3.367 68.0% 1.160 1.286 1.361 1.405
20.0% 2.106 2.589 2.991 3.326 68.5% 1.155 1.279 1.352 1.396
20.5% 2.090 2.564 2.958 3.285 69.0% 1.149 1.272 1.344 1.387
21.0% 2.074 2.540 2.926 3.245 69.5% 1.143 1.265 1.336 1.378
21.5% 2.058 2.517 2.895 3.205 70.0% 1.138 1.258 1.328 1.369
22.0% 2.042 2.494 2.864 3.167 70.5% 1.132 1.251 1.320 1.361
22.5% 2.027 2.471 2.833 3.129 71.0% 1.127 1.244 1.312 1.352
23.0% 2.011 2.448 2.803 3.092 71.5% 1.121 1.237 1.304 1.344
23.5% 1.996 2.426 2.774 3.056 72.0% 1.116 1.230 1.297 1.335
24.0% 1.981 2.404 2.745 3.020 72.5% 1.111 1.224 1.289 1.327
24.5% 1.967 2.383 2.717 2.986 73.0% 1.105 1.217 1.281 1.319
25.0% 1.952 2.362 2.689 2.951 73.5% 1.100 1.210 1.274 1.311
25.5% 1.938 2.341 2.662 2.918 74.0% 1.095 1.204 1.267 1.303
26.0% 1.923 2.320 2.635 2.885 74.5% 1.090 1.198 1.259 1.295
26.5% 1.909 2.300 2.609 2.853 75.0% 1.085 1.191 1.252 1.287
27.0% 1.896 2.280 2.583 2.821 75.5% 1.079 1.185 1.245 1.279
 Page 18

Present Value of Annuity $1.00 in Arrears

3 Periods
Interest Periods Interest Periods

Rate 3 4 5 6 Rate 3 4 5 6
27.5% 1.882 2.260 2.557 2.790 76.0% 1.074 1.179 1.238 1.272
28.0% 1.868 2.241 2.532 2.759 76.5% 1.069 1.172 1.231 1.264
28.5% 1.855 2.222 2.507 2.729 77.0% 1.064 1.166 1.224 1.256
29.0% 1.842 2.203 2.483 2.700 77.5% 1.060 1.160 1.217 1.249
29.5% 1.829 2.185 2.459 2.671 78.0% 1.055 1.154 1.210 1.242
30.0% 1.816 2.166 2.436 2.643 78.5% 1.050 1.148 1.204 1.235
30.5% 1.803 2.148 2.412 2.615 79.0% 1.045 1.143 1.197 1.227
31.0% 1.791 2.130 2.390 2.588 79.5% 1.040 1.137 1.190 1.220
31.5% 1.779 2.113 2.367 2.561 80.0% 1.036 1.131 1.184 1.213
32.0% 1.766 2.096 2.345 2.534 80.5% 1.031 1.125 1.177 1.206
32.5% 1.754 2.079 2.324 2.508 81.0% 1.026 1.120 1.171 1.199
33.0% 1.742 2.062 2.302 2.483 81.5% 1.022 1.114 1.165 1.193
33.5% 1.730 2.045 2.281 2.458 82.0% 1.017 1.108 1.158 1.186
34.0% 1.719 2.029 2.260 2.433 82.5% 1.013 1.103 1.152 1.179
34.5% 1.707 2.013 2.240 2.409 83.0% 1.008 1.097 1.146 1.173
35.0% 1.696 1.997 2.220 2.385 83.5% 1.004 1.092 1.140 1.166
35.5% 1.685 1.981 2.200 2.362 84.0% 0.999 1.087 1.134 1.160
36.0% 1.673 1.966 2.181 2.339 84.5% 0.995 1.081 1.128 1.153
36.5% 1.662 1.951 2.162 2.316 85.0% 0.991 1.076 1.122 1.147
37.0% 1.652 1.935 2.143 2.294 85.5% 0.986 1.071 1.116 1.141
37.5% 1.641 1.921 2.124 2.272 86.0% 0.982 1.066 1.111 1.135
38.0% 1.630 1.906 2.106 2.251 86.5% 0.978 1.061 1.105 1.129
38.5% 1.620 1.892 2.088 2.229 87.0% 0.974 1.055 1.099 1.123
39.0% 1.609 1.877 2.070 2.209 87.5% 0.969 1.050 1.094 1.117
39.5% 1.599 1.863 2.052 2.188 88.0% 0.965 1.045 1.088 1.111
40.0% 1.589 1.849 2.035 2.168 88.5% 0.961 1.040 1.082 1.105
40.5% 1.579 1.836 2.018 2.148 89.0% 0.957 1.036 1.077 1.099
41.0% 1.569 1.822 2.001 2.129 89.5% 0.953 1.031 1.072 1.093
41.5% 1.559 1.809 1.985 2.109 90.0% 0.949 1.026 1.066 1.087
42.0% 1.549 1.795 1.969 2.091 90.5% 0.945 1.021 1.061 1.082
42.5% 1.540 1.782 1.953 2.072 91.0% 0.941 1.016 1.056 1.076
43.0% 1.530 1.769 1.937 2.054 91.5% 0.937 1.012 1.050 1.071
43.5% 1.521 1.757 1.921 2.036 92.0% 0.933 1.007 1.045 1.065
44.0% 1.512 1.744 1.906 2.018 92.5% 0.930 1.002 1.040 1.060
44.5% 1.502 1.732 1.890 2.000 93.0% 0.926 0.998 1.035 1.054
45.0% 1.493 1.720 1.876 1.983 93.5% 0.922 0.993 1.030 1.049
45.5% 1.484 1.707 1.861 1.966 94.0% 0.918 0.989 1.025 1.044
46.0% 1.475 1.695 1.846 1.949 94.5% 0.914 0.984 1.020 1.039
46.5% 1.467 1.684 1.832 1.933 95.0% 0.911 0.980 1.015 1.033
47.0% 1.458 1.672 1.818 1.917 95.5% 0.907 0.975 1.010 1.028
47.5% 1.449 1.660 1.804 1.901 96.0% 0.903 0.971 1.006 1.023
48.0% 1.441 1.649 1.790 1.885 96.5% 0.900 0.967 1.001 1.018
48.5% 1.432 1.638 1.776 1.870 97.0% 0.896 0.962 0.996 1.013
49.0% 1.424 1.627 1.763 1.854 97.5% 0.893 0.958 0.992 1.008
49.5% 1.416 1.616 1.750 1.839 98.0% 0.889 0.954 0.987 1.003
50.0% 1.407 1.605 1.737 1.824 98.5% 0.885 0.950 0.982 0.999
99.0% 0.882 0.946 0.978 0.994
99.5% 0.878 0.942 0.973 0.989
100.0% 0.875 0.938 0.969 0.984

If off the chart use 100%

 Number Correct
1 4.01 #REF!
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88 ###
89 ###