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In: Accounting

For each of the following cases, indicate (a) to what rate columns, and (b) to what...

For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor.

1. In a future value of 1 table:

Annual Rate

Number of Years Invested

Compounded

(a) Rate of Interest

(b) Number of Periods

a. 11% 10 Annually

%

b. 12% 6 Quarterly

%

c. 10% 18 Semiannually

%


2. In a present value of an annuity of 1 table:

Annual Rate

Number of Years Invested

Number of Rents Involved

Frequency of Rents

(a) Rate of Interest

(b) Number of Periods

a. 12% 27 27 Annually

%

b. 8% 15 30 Semiannually

%

c. 12% 7 28 Quarterly

%

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