Business Accounting and Finance Tutorial

Question 1

(a) ExplainwhatismeantbyInternalandExternalfinancing.Stateany4examplesineach case. (10marks)

(b) What is long term financing? Give any 4 examples of the different types of long-term financing. (10marks)

Question 2

Classify each of the following transaction as “Capital” or “Revenue” expenditure.
(1 mark each; 20 marks)
(i) Bought new OfficeEquipment
(ii) Bought computers for the Administrativestaff
(iii) Signed a maintenance contract for thecomputers
(iv) Installed air conditioners in the Admin Office
(v) Signed a contract for the maintenance of these airconditioners
(vi) Paid utilities for the month ofAugust
(vii) Bought new electronic machines for the ProductionUnit
(viii) Sent staff for training for the initial operation of these new electronicmachines
(ix) Paid PUB Company for the maintenance of these electronicmachines
(x) Took up yearly Insurance for the electronicmachines
(xi) Purchase of stationery for the AdminOffice
(xii) Legal fees paid for the recovery ofdebts
(xiii) Reimbursed staff for official travelling expensesincurred
(xiv) Paid interest on the bankloan
(xv) Paid utilities for thewarehouse
(xvi) Paid hospitalization insurance premium for thestaff
(xvii) Paid year-end bonus to thestaff
(xviii) Repainted the Receptionarea
(xix) Bought a second-hand car for office use
(xx) Bought petrol for this second-handcar

Question 3

MSC Company purchased several computers for $200,000 and estimated to use it for 5 years. Itisestimatedthattheycanberesoldfor$40,000attheendofthe5years.Jeffrey,theAccounts Executiveisnotsurewhetherheshouldusethestraightlineorthereducingbalancemethodto calculate the depreciation on thesecomputers.

You are required to:

(a) calculate the depreciation on these computers using the straight line method of depreciation for each of thefiveyears. (6marks)

(b) calculate the depreciation for each of the five years using the reducing balance method at the rate of 20%per annum. (10marks)

(c) Give any 4 reasons why it is necessary for Companies to provide depreciation onNon- currentAssets/FixedAssets. (4marks)

Question 4

The following information was extracted from the books of MM2 Shop at the end of the financial year ended 30 June 2020.
Dr
$ Cr
$
Freehold Shop , at cost 1,000,000
Office Equipment, at cost 200,000
Delivery Van, at cost 100,000
Accumulated depreciation, for Delivery van 40,000
Accumulated depreciation for Office Equipment 105,000
Stocks of goods as at 1.7.2019 54,600
Creditors 62,500
Bank overdraft 330,000
Cash in hand 2,710
Sales 788,000
Salaries 83,200
Repairs & maintenance 55,650
Purchases 228,750
Bank interest 23,000
Petrol for Delivery van 18,350
Administrative expenses 39,240
Capital 500,000
Drawings 20,000
1,825,500 1,825,500
======== =======
Additional information:

(i) TheOfficeequipmentweredepreciatedat15%oncostwhilsttheDeliveryVan was depreciated at 20% oncost.
(ii) Stock of merchandise at 30 June 2020 was valued at$40,000.
(iii) Bank interest of $10,000 was not paid as at 30 June2020.
(iv) Repairs and maintenance of $2,500 was paid for next year’scontract.

Required:

(a) Prepare the Trading & Profit & Loss Account MM2 Shop for the year ended 30 June 2020. (12marks)

(b) Prepare the Balance Sheet for MM2 Shop as at 30June2020. (8 marks)

Question 5

You are required to use the Present and Future Value Tables provided to answer these questions.

(a) Peter deposits $5,000 for three years to earn interest at a rate of 6% per year compoundedannually.Computethevalueoftheinvestmentattheendofthethirdyear.
(5 marks)

(b) Sam is planning to retire today. He wishes to purchase an annuity that willpay him
$5,600 at the end of each year for the next five years. If the current interest rate is 12% compounded annually, how much will Sam have to pay for the annuity today.
(5marks)

(c) Marydeposits$20,000intoabankataninterestrateof12%p.a.compoundedquarterly for two years. What amount will Mary receive from the bank at the end of the two years? (5marks)

(d) Ifyoudeposit$20,000inasavingsaccountpayingannualcompoundinterestat7%.
Calculate how much money you would have if this money is kept in the bank for 5 years
(5 marks)

Question 6

Siemen Manufacturing Company has a capacity to manufacture 200,000 cameras per month. The following cost data were furnished by the Cost Executive:

Direct materialspercamera $32
Direct labourpercamera $16
Variable overheadsper camera $12
Fixed Selling andDistributionCosts $150,000 per month FixedAdministrationcosts $100,000 permonth
FixedFinance costs $20,000 per month The Sales Manager has submitted three alternatives for the company toconsider:
(i) Sell the camera at $80 each to achieve sales of 100,000 cameras permonth
(ii) Sell the camera at $100 each and expect sales to fall to 80,000 cameras per month
(iii) Sell the camera at $70 each and expect sales to increase to 150,000 units per month.

Required:

(a) Advise the Sales Manager which alternative is themostprofitable. (16 marks)

(b) List any 2 situations in which Marginal Costing, as a technique, aids decisionmaking.
(4 mark)

TABLEA:FUTUREVALUEINTERESTFACTOR FVIF

( 1 + r ) n

PERCENT %

PERIOD
1
2
3
4
5
6
7
8
9
10
12
14
16
18
20
24
28
32
40
1 1.0100 1.0200 1.0300 1.0400 1.0500 1.0600 1.0700 1.0800 1.0900 1.1000 1.1200 1.1400 1.1600 1.1800 1.2000 1.2400 1.2800 1.3200 1.4000
2 1.0201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449 1.1664 1.1881 1.2100 1.2544 1.2996 1.3456 1.3924 1.4400 1.5376 1.6384 1.7424 1.9600
3 1.0303 1.0612 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.4049 1.4815 1.5609 1.6430 1.7280 1.9066 2.0972 2.3000 2.7440
4 1.0406 1.0824 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.5735 1.6890 1.8106 1.9388 2.0736 2.3642 2.6844 3.0360 3.8416
5 1.0510 1.1041 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386 1.6105 1.7623 1.9254 2.1003 2.2878 2.4883 2.9316 3.4360 4.0075 5.3782
6 1.0615 1.1262 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.9738 2.1950 2.4364 2.6996 2.9860 3.6352 4.3980 5.2899 7.5295
7 1.0721 1.1487 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.2107 2.5023 2.8262 3.1855 3.5832 4.5077 5.6295 6.9826 10.5414
8 1.0829 1.1717 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.4760 2.8526 3.2784 3.7589 4.2998 5.5895 7.2058 9.2170 14.7579
9 1.0937 1.1951 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731 3.2519 3.8030 4.4355 5.1598 6.9310 9.2234 12.1665 20.6610
10 1.1046 1.2190 1.3439 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058 3.7072 4.4114 5.2338 6.1917 8.5944 11.8059 16.0598 28.9255
11 1.1157 1.2434 1.3842 1.5395 1.7103 1.8983 2.1049 2.3316 2.5804 2.8531 3.4785 4.2262 5.1173 6.1759 7.4301 10.6571 15.1116 21.1989 40.4957
12 1.1268 1.2682 1.4258 1.6010 1.7959 2.0122 2.2522 2.5182 2.8127 3.1384 3.8960 4.8179 5.9360 7.2876 8.9161 13.2148 19.3428 27.9825 56.6939
13 1.1381 1.2936 1.4685 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 3.4523 4.3635 5.4924 6.8858 8.5994 10.6993 16.3863 24.7588 36.9370 79.3715
14 1.1495 1.3195 1.5126 1.7317 1.9799 2.2609 2.5785 2.9372 3.3417 3.7975 4.8871 6.2613 7.9875 10.1472 12.8392 20.3191 31.6913 48.7568 111.1201
15 1.1610 1.3459 1.5580 1.8009 2.0789 2.3966 2.7590 3.1722 3.6425 4.1772 5.4736 7.1379 9.2655 11.9737 15.4070 25.1956 40.5648 64.3590 155.5681
16 1.1726 1.3728 1.6047 1.8730 2.1829 2.5404 2.9522 3.4259 3.9703 4.5950 6.1304 8.1372 10.7480 14.1290 18.4884 31.2426 51.9230 84.9538 217.7953
17 1.1843 1.4002 1.6528 1.9479 2.2920 2.6928 3.1588 3.7000 4.3276 5.0545 6.8660 9.2765 12.4677 16.6722 22.1861 38.7408 66.4614 112.1390 304.9135
18 1.1961 1.4282 1.7024 2.0258 2.4066 2.8543 3.3799 3.9960 4.7171 5.5599 7.6900 10.5752 14.4625 19.6733 26.6233 48.0386 85.0706 148.0235 426.8789
19 1.2081 1.4568 1.7535 2.1068 2.5270 3.0256 3.6165 4.3157 5.1417 6.1159 8.6128 12.0557 16.7765 23.2144 31.9480 59.5679 108.8904 195.3911 597.6304
20 1.2202 1.4859 1.8061 2.1911 2.6533 3.2071 3.8697 4.6610 5.6044 6.7275 9.6463 13.7435 19.4608 27.3930 38.3376 73.8641 139.3797 257.9162 836.6826
21 1.2324 1.5157 1.8603 2.2788 2.7860 3.3996 4.1406 5.0338 6.1088 7.4002 10.8038 15.6676 22.5745 32.3238 46.0051 91.592 178.41 340.45 1171.36
22 1.2447 1.5460 1.9161 2.3699 2.9253 3.6035 4.4304 5.4365 6.6586 8.1403 12.1003 17.8610 26.1864 38.1421 55.2061 113.574 228.36 449.39 1639.90
23 1.2572 1.5769 1.9736 2.4647 3.0715 3.8197 4.7405 5.8715 7.2579 8.9543 13.5523 20.3616 30.3762 45.0076 66.2474 140.831 292.30 593.20 2295.86
24 1.2697 1.6084 2.0328 2.5633 3.2251 4.0489 5.0724 6.3412 7.9111 9.8497 15.1786 23.2122 35.2364 53.1090 79.4968 174.631 374.14 783.02 3214.20
25 1.2824 1.6406 2.0938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231 10.8347 17.0001 26.4619 40.8742 62.6686 95.3962 216.542 478.90 1033.59 4499.88
26 1.2953 1.6734 2.1566 2.7725 3.5557 4.5494 5.8074 7.3964 9.3992 11.9182 19.0401 30.1666 47.4141 73.9490 114.4755 268.512 613.00 1364.34 6299.83
27 1.3082 1.7069 2.2213 2.8834 3.7335 4.8223 6.2139 7.9881 10.2451 13.1100 21.3249 34.3899 55.0004 87.2598 137.3706 332.955 784.64 1800.93 8819.76
28 1.3213 1.7410 2.2879 2.9987 3.9201 5.1117 6.6488 8.6271 11.1671 14.4210 23.8839 39.2045 63.8004 102.9666 164.8447 412.864 1004.34 2377.22 12347.67
29 1.3345 1.7758 2.3566 3.1187 4.1161 5.4184 7.1143 9.3173 12.1722 15.8631 26.7499 44.6931 74.0085 121.5005 197.8136 511.952 1285.55 3137.94 17286.74
30 1.3478 1.8114 2.4273 3.2434 4.3219 5.7435 7.6123 10.0627 13.2677 17.4494 29.9599 50.9502 85.8499 143.3706 237.3763 634.820 1645.50 4142.07 24201.43

TABLEB:FUTUREVALUEINTERESTFACTORANNUITY FVIFA

n
(1 + r ) – 1

r

PERCENT %

PERIOD 1 2 3 4 5 6 7 8 9 10 12 14 16 18 20 24 28 32 40
1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
2 2.0100 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 2.1000 2.1200 2.1400 2.1600 2.1800 2.2000 2.2400 2.2800 2.3200 2.4000
3 3.0301 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.3744 3.4396 3.5056 3.5724 3.6400 3.7776 3.9184 4.0624 4.3600
4 4.0604 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.7793 4.9211 5.0665 5.2154 5.3680 5.6842 6.0156 6.3624 7.1040
5 5.1010 5.2040 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.3528 6.6101 6.8771 7.1542 7.4416 8.0484 8.6999 9.3983 10.9456
6 6.1520 6.3081 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.1152 8.5355 8.9775 9.4420 9.9299 10.9801 12.1359 13.4058 16.3238
7 7.2135 7.4343 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0890 10.7305 11.4139 12.1415 12.9159 14.6153 16.5339 18.6956 23.8534
8 8.2857 8.5830 8.8923 9.2142 9.5491 9.8975 10.2598 10.6366 11.0285 11.4359 12.2997 13.2328 14.2401 15.3270 16.4991 19.1229 22.1634 25.6782 34.3947
9 9.3685 9.7546 10.1591 10.5828 11.0266 11.4913 11.9780 12.4876 13.0210 13.5795 14.7757 16.0853 17.5185 19.0859 20.7989 24.7125 29.3692 34.8953 49.1526
10 10.4622 10.9497 11.4639 12.0061 12.5779 13.1808 13.8164 14.4866 15.1929 15.9374 17.5487 19.3373 21.3215 23.5213 25.9587 31.6434 38.5926 47.0618 69.8137
11 11.5668 12.1687 12.8078 13.4864 14.2068 14.9716 15.7836 16.6455 17.5603 18.5312 20.6546 23.0445 25.7329 28.7551 32.1504 40.2379 50.3985 63.1215 98.7391
12 12.6825 13.4121 14.1920 15.0258 15.9171 16.8699 17.8885 18.9771 20.1407 21.3843 24.1331 27.2707 30.8502 34.9311 39.5805 50.8950 65.5100 84.3204 139.2348
13 13.8093 14.6803 15.6178 16.6268 17.7130 18.8821 20.1406 21.4953 22.9534 24.5227 28.0291 32.0887 36.7862 42.2187 48.4966 64.1097 84.8529 112.3030 195.9287
14 14.9474 15.9739 17.0863 18.2919 19.5986 21.0151 22.5505 24.2149 26.0192 27.9750 32.3926 37.5811 43.6720 50.8180 59.1959 80.4961 109.6117 149.2399 275.3002
15 16.0969 17.2934 18.5989 20.0236 21.5786 23.2760 25.1290 27.1521 29.3609 31.7725 37.2797 43.8424 51.6595 60.9653 72.0351 100.8151 141.3029 197.9967 386.4202
16 17.2579 18.6393 20.1569 21.8245 23.6575 25.6725 27.8881 30.3243 33.0034 35.9497 42.7533 50.9804 60.9250 72.9390 87.4421 126.0108 181.8677 262.3557 541.9883
17 18.4304 20.0121 21.7616 23.6975 25.8404 28.2129 30.8402 33.7502 36.9737 40.5447 48.8837 59.1176 71.6730 87.0680 105.9306 157.2534 233.7907 347.3095 759.7837
18 19.6147 21.4123 23.4144 25.6454 28.1324 30.9057 33.9990 37.4502 41.3013 45.5992 55.7497 68.3941 84.1407 103.7403 128.1167 195.9942 300.2521 459.4485 1064.697
19 20.8109 22.8406 25.1169 27.6712 30.5390 33.7600 37.3790 41.4463 46.0185 51.1591 63.4397 78.9692 98.6032 123.4135 154.7400 244.0328 385.3227 607.4721 1491.576
20 22.0190 24.2974 26.8704 29.7781 33.0660 36.7856 40.9955 45.7620 51.1601 57.2750 72.0524 91.0249 115.3797 146.6280 186.6880 303.6006 494.2131 802.8631 2089.206
21 23.2392 25.7833 28.6765 31.9692 35.7193 39.9927 44.8652 50.4229 56.7645 64.0025 81.6987 104.7684 134.8405 174.0210 225.0256 377.465 633.593 1060.779 2925.889
22 24.4716 27.2990 30.5368 34.2480 38.5052 43.3923 49.0057 55.4568 62.8733 71.4027 92.5026 120.4360 157.4150 206.3448 271.0307 469.056 811.999 1401.229 4097.245
23 25.7163 28.8450 32.4529 36.6179 41.4305 46.9958 53.4361 60.8933 69.5319 79.5430 104.6029 138.2970 183.6014 244.4868 326.2369 582.630 1040.358 1850.622 5737.142
24 26.9735 30.4219 34.4265 39.0826 44.5020 50.8156 58.1767 66.7648 76.7898 88.4973 118.1552 158.6586 213.9776 289.4945 392.4842 723.461 1332.659 2443.821 8032.999
25 28.2432 32.0303 36.4593 41.6459 47.7271 54.8645 63.2490 73.1059 84.7009 98.3471 133.3339 181.8708 249.2140 342.6035 471.9811 898.092 1706.803 3226.844 11247.199
26 29.5256 33.6709 38.5530 44.3117 51.1135 59.1564 68.6765 79.9544 93.3240 109.1818 150.3339 208.3327 290.0883 405.2721 567.3773 1114.634 2185.708 4260.434 15747.079
27 30.8209 35.3443 40.7096 47.0842 54.6691 63.7058 74.4838 87.3508 102.7231 121.0999 169.3740 238.4993 337.5024 479.2211 681.8528 1383.146 2798.706 5624.772 22046.910
28 32.1291 37.0512 42.9309 49.9676 58.4026 68.5281 80.6977 95.3388 112.9682 134.2099 190.6989 272.8892 392.5028 566.4809 819.2233 1716.101 3583.344 7425.699 30866.674
29 33.4504 38.7922 45.2189 52.9663 62.3227 73.6398 87.3465 103.9659 124.1354 148.6309 214.5828 312.0937 456.3032 669.4475 984.0680 2128.965 4587.680 9802.923 43214.343
30 34.7849 40.5681 47.5754 56.0849 66.4388 79.0582 94.4608 113.2832 136.3075 164.4940 241.3327 356.7868 530.3117 790.9480 1181.8816 2640.916 5873.231 12940.859 60501.081

TABLEC:PRESENTVALUEINTERESTFACTOR PVIF

1

(1 + r )n

PERCENT %

PERIOD 1 2 3 4 5 6 7 8 9 10 12 14 16 18 20 24 28 32 40
1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8772 0.8621 0.8475 0.8333 0.8065 0.7813 0.7576 0.7143
2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.7972 0.7695 0.7432 0.7182 0.6944 0.6504 0.6104 0.5739 0.5102
3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7118 0.6750 0.6407 0.6086 0.5787 0.5245 0.4768 0.4348 0.3644
4 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6355 0.5921 0.5523 0.5158 0.4823 0.4230 0.3725 0.3294 0.2603
5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5674 0.5194 0.4761 0.4371 0.4019 0.3411 0.2910 0.2495 0.1859
6 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5066 0.4556 0.4104 0.3704 0.3349 0.2751 0.2274 0.1890 0.1328
7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4523 0.3996 0.3538 0.3139 0.2791 0.2218 0.1776 0.1432 0.0949
8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4039 0.3506 0.3050 0.2660 0.2326 0.1789 0.1388 0.1085 0.0678
9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606 0.3075 0.2630 0.2255 0.1938 0.1443 0.1084 0.0822 0.0484
10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220 0.2697 0.2267 0.1911 0.1615 0.1164 0.0847 0.0623 0.0346
11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.2875 0.2366 0.1954 0.1619 0.1346 0.0938 0.0662 0.0472 0.0247
12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2567 0.2076 0.1685 0.1372 0.1122 0.0757 0.0517 0.0357 0.0176
13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2292 0.1821 0.1452 0.1163 0.0935 0.0610 0.0404 0.0271 0.0126
14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2046 0.1597 0.1252 0.0985 0.0779 0.0492 0.0316 0.0205 0.0090
15 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.1827 0.1401 0.1079 0.0835 0.0649 0.0397 0.0247 0.0155 0.0064
16 0.8528 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1631 0.1229 0.0930 0.0708 0.0541 0.0320 0.0193 0.0118 0.0046
17 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1456 0.1078 0.0802 0.0600 0.0451 0.0258 0.0150 0.0089 0.0033
18 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1300 0.0946 0.0691 0.0508 0.0376 0.0208 0.0118 0.0068 0.0023
19 0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 0.1161 0.0829 0.0596 0.0431 0.0313 0.0168 0.0092 0.0051 0.0017
20 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1037 0.0728 0.0514 0.0365 0.0261 0.0135 0.0072 0.0039 0.0012
21 0.8114 0.6598 0.5375 0.4388 0.3589 0.2942 0.2415 0.1987 0.1637 0.1351 0.0926 0.0638 0.0443 0.0309 0.0217 0.0109 0.0056 0.0029 0.0009
22 0.8034 0.6468 0.5219 0.4220 0.3418 0.2775 0.2257 0.1839 0.1502 0.1228 0.0826 0.0560 0.0382 0.0262 0.0181 0.0088 0.0044 0.0022 0.0006
23 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.1117 0.0738 0.0491 0.0329 0.0222 0.0151 0.0071 0.0034 0.0017 0.0004
24 0.7876 0.6217 0.4919 0.3901 0.3101 0.2470 0.1971 0.1577 0.1264 0.1015 0.0659 0.0431 0.0284 0.0188 0.0126 0.0057 0.0027 0.0013 0.0003
25 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0588 0.0378 0.0245 0.0160 0.0105 0.0046 0.0021 0.0010 0.0002
26 0.7720 0.5976 0.4637 0.3607 0.2812 0.2198 0.1722 0.1352 0.1064 0.0839 0.0525 0.0331 0.0211 0.0135 0.0087 0.0037 0.0016 0.0007 0.0002
27 0.7644 0.5859 0.4502 0.3468 0.2678 0.2074 0.1609 0.1252 0.0976 0.0763 0.0469 0.0291 0.0182 0.0115 0.0073 0.0030 0.0013 0.0006 0.0001
28 0.7568 0.5744 0.4371 0.3335 0.2551 0.1956 0.1504 0.1159 0.0895 0.0693 0.0419 0.0255 0.0157 0.0097 0.0061 0.0024 0.0010 0.0004 0.0001
29 0.7493 0.5631 0.4243 0.3207 0.2429 0.1846 0.1406 0.1073 0.0822 0.0630 0.0374 0.0224 0.0135 0.0082 0.0051 0.0020 0.0008 0.0003 0.0001
30 0.7419 0.5521 0.4120 0.3083 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.0334 0.0196 0.0116 0.0070 0.0042 0.0016 0.0006 0.0002 0.0000

TABLED:PRESENTVALUEINTERESTFACTORANNUITY PVIFA

1 – ( 1 + r )-n

r

PERCENT %

PERIOD 1 2 3 4 5 6 7 8 9 10 12 14 16 18 20 24 28 32 40
1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8772 0.8621 0.8475 0.8333 0.8065 0.7813 0.7576 0.7143
2 1.9704 1.9416 1.9135 1.8861 1.8594 1.8334 1.8080 1.7833 1.7591 1.7355 1.6901 1.6467 1.6052 1.5656 1.5278 1.4568 1.3916 1.3315 1.2245
3 2.9410 2.8839 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.4018 2.3216 2.2459 2.1743 2.1065 1.9813 1.8684 1.7663 1.5889
4 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.0373 2.9137 2.7982 2.6901 2.5887 2.4043 2.2410 2.0957 1.8492
5 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.6048 3.4331 3.2743 3.1272 2.9906 2.7454 2.5320 2.3452 2.0352
6 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.1114 3.8887 3.6847 3.4976 3.3255 3.0205 2.7594 2.5342 2.1680
7 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.5638 4.2883 4.0386 3.8115 3.6046 3.2423 2.9370 2.6775 2.2628
8 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.9676 4.6389 4.3436 4.0776 3.8372 3.4212 3.0758 2.7860 2.3306
9 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.3282 4.9464 4.6065 4.3030 4.0310 3.5655 3.1842 2.8681 2.3790
10 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502 5.2161 4.8332 4.4941 4.1925 3.6819 3.2689 2.9304 2.4136
11 10.3676 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 6.8052 6.4951 5.9377 5.4527 5.0286 4.6560 4.3271 3.7757 3.3351 2.9776 2.4383
12 11.2551 10.5753 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 6.1944 5.6603 5.1971 4.7932 4.4392 3.8514 3.3868 3.0133 2.4559
13 12.1337 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.4235 5.8424 5.3423 4.9095 4.5327 3.9124 3.4272 3.0404 2.4685
14 13.0037 12.1062 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 6.6282 6.0021 5.4675 5.0081 4.6106 3.9616 3.4587 3.0609 2.4775
15 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 6.8109 6.1422 5.5755 5.0916 4.6755 4.0013 3.4834 3.0764 2.4839
16 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 6.9740 6.2651 5.6685 5.1624 4.7296 4.0333 3.5026 3.0882 2.4885
17 15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.1196 6.3729 5.7487 5.2223 4.7746 4.0591 3.5177 3.0971 2.4918
18 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.2497 6.4674 5.8178 5.2732 4.8122 4.0799 3.5294 3.1039 2.4941
19 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.3658 6.5504 5.8775 5.3162 4.8435 4.0967 3.5386 3.1090 2.4958
20 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.4694 6.6231 5.9288 5.3527 4.8696 4.1103 3.5458 3.1129 2.4970
21 18.8570 17.0112 15.4150 14.0292 12.8212 11.7641 10.8355 10.0168 9.2922 8.6487 7.5620 6.6870 5.9731 5.3837 4.8913 4.1212 3.5514 3.1158 2.4979
22 19.6604 17.6580 15.9369 14.4511 13.1630 12.0416 11.0612 10.2007 9.4424 8.7715 7.6446 6.7429 6.0113 5.4099 4.9094 4.1300 3.5558 3.1180 2.4985
23 20.4558 18.2922 16.4436 14.8568 13.4886 12.3034 11.2722 10.3711 9.5802 8.8832 7.7184 6.7921 6.0442 5.4321 4.9245 4.1371 3.5592 3.1197 2.4989
24 21.2434 18.9139 16.9355 15.2470 13.7986 12.5504 11.4693 10.5288 9.7066 8.9847 7.7843 6.8351 6.0726 5.4509 4.9371 4.1428 3.5619 3.1210 2.4992
25 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 7.8431 6.8729 6.0971 5.4669 4.9476 4.1474 3.5640 3.1220 2.4994
26 22.7952 20.1210 17.8768 15.9828 14.3752 13.0032 11.8258 10.8100 9.9290 9.1609 7.8957 6.9061 6.1182 5.4804 4.9563 4.1511 3.5656 3.1227 2.4996
27 23.5596 20.7069 18.3270 16.3296 14.6430 13.2105 11.9867 10.9352 10.0266 9.2372 7.9426 6.9352 6.1364 5.4919 4.9636 4.1542 3.5669 3.1233 2.4997
28 24.3164 21.2813 18.7641 16.6631 14.8981 13.4062 12.1371 11.0511 10.1161 9.3066 7.9844 6.9607 6.1520 5.5016 4.9697 4.1566 3.5679 3.1237 2.4998
29 25.0658 21.8444 19.1885 16.9837 15.1411 13.5907 12.2777 11.1584 10.1983 9.3696 8.0218 6.9830 6.1656 5.5098 4.9747 4.1585 3.5687 3.1240 2.4999
30 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.0552 7.0027 6.1772 5.5168 4.9789 4.1601 3.5693 3.1242 2.4999