Harry and Lisa Perry have agreed to pay for their granddaughter's college education and need to know how much to set aside so annual payments of $15,000 can be made for five years at 3% annual interest. E Click the icon to view the table. Today they need to set aside S (Round to the nearest cent as needed.)
Harry and Lisa Perry have agreed to pay for their granddaughter's college education and need to know how much to set aside so annual payments of $15,000 can be made for five years at 3% annual interest. E Click the icon to view the table. Today they need to set aside S (Round to the nearest cent as needed.)
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.18E
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Transcribed Image Text:Harry and Lisa Perry have agreed to pay for their granddaughter's college education and need to know how much to set aside so annual payments of $15,000 can be
made for five years at 3% annual interest.
E Click the icon to view the table.
Today they need to set aside S
(Round to the nearest cent as needed.)
Transcribed Image Text:Present Value of a $1.00 Ordinary Annuity
Rate per period
Periods 2%
3%
4%
5%
6%
7%
8%
9%
10%
1
0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909
2
1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736
2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487
4
3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170
5
4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791
6
5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355
7
6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868
8
7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335
8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759
10
8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145
11
9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495
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