For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the present value factor.
(1) In Table 3 (present value of 1):
|
Annual Rate |
Number of |
Discounts |
||||
|---|---|---|---|---|---|---|
|
Case A |
8% |
8 |
Annually |
|||
|
Case B |
12% |
11 |
Semiannually |
|||
|
Case C |
14% |
7 |
Semiannually |
|
(a) |
(b) |
|||
|---|---|---|---|---|
|
Case A |
enter percentages % |
enter a number of periods periods |
||
|
Case B |
enter percentages % |
enter a number of periods periods |
||
|
Case C |
enter percentages % |
enter a number of periods periods |
(2) In Table 4 (present value of an annuity of 1):
|
Annual Rate |
Number of |
Number of |
Frequency of |
|||||
|---|---|---|---|---|---|---|---|---|
|
Case A |
9% |
19 |
19 |
Annually |
||||
|
Case B |
10% |
5 |
5 |
Annually |
||||
|
Case C |
12% |
8 |
16 |
Semiannually |
|
(a) |
(b) |
|||
|---|---|---|---|---|
|
Case A |
enter percentages % |
enter a number of periods periods |
||
|
Case B |
enter percentages % |
enter a number of periods periods |
||
|
Case C |
enter percentages % |
enter a number of periods periods |