Scribd
Upload
109 views

ANSWERS KEY - Module 7 Assignment

This document provides the solutions to 6 problems involving calculations using present value, future value, and annuity tables. The problems cover topics like calculating present and future value using interest rates, calculating future and present value of annuities, and solving for an unknown interest rate. Step-by-step workings are shown for each problem, utilizing the appropriate present/future value or annuity tables given in the question.

Uploaded by

Mannuelle Gacud
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
109 views

ANSWERS KEY - Module 7 Assignment

This document provides the solutions to 6 problems involving calculations using present value, future value, and annuity tables. The problems cover topics like calculating present and future value using interest rates, calculating future and present value of annuities, and solving for an unknown interest rate. Step-by-step workings are shown for each problem, utilizing the appropriate present/future value or annuity tables given in the question.

Uploaded by

Mannuelle Gacud
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

ANSWERS

Problem 1 (Use Table 2)

PV = FVn (PVIFi,n)

a) ₱ 8,000 x .558 = ₱4,464


b) ₱16,000 x .567 = ₱9,072
c) ₱25,000 x .315 = ₱7,875
d) ₱ 1,000 x .001 = ₱1

Problem 2 (Use Table 1)

FVn = PV (FVIFi,n)

a) ₱12,000 x 1.501 = ₱18,012


b) ₱12,000 x 5.474 = ₱65,688
c) ₱12,000 x 10.835 = ₱130,020
d) ₱12,000 x 11.467 = ₱137,604 (5%, 50 periods)

Problem 3 (Use Table 2 and Table 4)

PV = FVn (PVIFi,n)

a) ₱12,000 x .507 = ₱6,084


b) ₱15,000 x .315 = ₱4,725

PVOA n = A (PVIFA i,n)

c) ₱ 5,000 x 6.710 = ₱33,550


d) ₱40,000 x 17.159 = ₱686,360

Problem 4 (Use Table 2)

PV = FVn (PVIFi,n)

= (₱30,000) x (.593) = ₱17,790

Problem 5 (Use Table 3)

FVOAn = A (FVIFAi,n)

= (₱1,500) x (13.181) = ₱19,771.50

Problem 6 (Use Table 4)

Rewrite the Equation PVOA n = A (PVIFA i,n) to solve for the interest rate. Dividing both sides of the
equation by A gives a new equation: PVIFA i,n = PVOA n ÷ A. Now, solve the new equation as follows:

PVIFA i,6 = ₱20,000 ÷ ₱5,142.71 = 3.889

Look up PVIFA of 3.889 for six years in Table 4 and the result is an interest rate of 14 percent.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy