Present and future value tables of 1 at 11% are presented below.
|
|
PV of $1
|
FV of $1
|
PVA of $1
|
FVA of $1
|
|
1
|
0.90090
|
1.11000
|
0.90090
|
1.0000
|
|
2
|
0.81162
|
1.23210
|
1.71252
|
2.1100
|
|
3
|
0.73119
|
1.36763
|
2.44371
|
3.3421
|
|
4
|
0.65873
|
1.51807
|
3.10245
|
4.7097
|
|
5
|
0.59345
|
1.68506
|
3.69590
|
6.2278
|
|
6
|
0.53464
|
1.87041
|
4.23054
|
7.9129
|
Polo Publishers purchased a multi-color offset press with terms of $75,000 down and a noninterest-bearing note requiring payment of $60,000 at the end of each year for four years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at:
$186,147.
$135,000.
$232,684.
$261,147.