SECTION: TRUE OR FALSE

1. Dividend Irrelevant
theory claims that dividends policy has an cffect on both the price
of a firm's stock and its cost of
capital
a) True
b) False
2. A reasonable conclusion about dividend policy is that management should avoid
Surprising investors when it comes to the firm's dividend decision.
a) True
b) False
3. Money markets are the markets where Bank notes and coins are traded.
a) True
b) False
4. Financial markets provide the mechanism for allocating financial resources or funds
from savers to borrOwers
a) True
b) False
5. The nominal rate of interest is equal to the effective rate of interest when interest is
compounded annually.
a) True
b) False
6. Business finance is the study of financial planning, asset management and fund
raising by businesses and financial institutions
a) True
b) False
7. Stock splits generally occur when management is less confident, so are interpreted as
negative signals.
a) True
b) False
8. A firm's payout ratio is caleulated as the ratio of dividends paid to total earnings
a) True
b) False
9. The secondary securities markets are involved in creating and issuing new securities,
mortgages, and other claims to wealth.
a) True
b) False
10. Less wealthy and retired individuals prefer more cash dividends on a regular basis.
a) True
b) False

11. Replacement decision in capital budgeting involves the purchase of capital assets to
add them to existing assets in order to increase existing operations and expand the
fim.
a) True
b) False
12. Unconventional cash flows have two or more changes in signs.
a) True
b) False

Page 2 of 19
 13. Public finance is the
study of how growth-driven performance-focused, well-
established listed fims raise financial
capital and manage operations and assets.
a) Tnue
b) False
14. Capital markets are markets where
equity securities and debt securities with
maturities of greater than one year are traded.
a) True
b) False
15. The decision rule for modified internal rate
of return is to accept the project if
MIRR<Cost of capital.
a) True
b False

16. One of the reasons attributed to the time value of

money is that individuals prefer
future consumption to current consumption.
a) True
b) False

SECTION B: MULTIPLE CHOICE

17. Ibiza Corporation invested P20,000 for the last four years in an investment that will
pay the firm P120,000 at the end of this year. The P120,000 received at the end of this
year is an example of a(n)_
uneven cash flow
b) annuity due
c)ordinaryannuity
d) deferred annuity
e) lump-sum amount

18. Which of the following statements concerning the effect of taxes on a firm's cost of
capital is correct?

a) For a particular firm, the before-tax cost of debt is less than the after-tax cost
of debt because the firm must pay taxes on the interest its bondholders receive.
b) All else equal, an increase in the corporate tax rate will result in a decrease in
the firm's weighted average cost of capital.
c) A fim's after-tax cost of debt is always greater than its cost of retained
earnings.
d) Because preferred stock dividends are tax deductible to the firm, its cost of
preferred stock is greater than its before-tax cost of debt.
e) All else equal, a firms cost of retained earnings is less than its cost of new
common equity because any earnings retained by the firm are not double taxed
i.e., taxed twice) like the dividends that are paid to new common
stockholders.
19. Given a 10% required return and the following cash flows, Calculate the Terminal
value
Period Cash flows
0 P-20000
P15,000 s Co0
sCOC( Cc
66 SS
Page 3 of 19 6SCC
2. P13,000
P-5,000

a) P28, 000
b) P3,000
c) P23, 756.57
d) P32, 230

20. Regular Payments if made at the beginning of each period such as the beginning of
every year it is classified as
a) Ordinary annuity
b) Advance Annuity
c) Deferred annuity
d) Annuity due
e) Both (b) and (d)

-21. The following are disadvantages of Residual dividend policy EXCEPT for,
a) Results in variable dividends
b) Sends conflicting signals
c) Minimizes new stock issues and flotation costs
d) Doesn't appeal to any specific clientele.

22. Makgadikgadi Digging Tools plans to issue new preferred stock, which has a market
value of P85 per share. Holders of the stock will receive an annual dividend equal to
P9.35. The flotation costs associated with the new issue were 6 percent and
Makgadikgadi Digging's marginal tax rate is 30 percent. What is Makgadikgadi
Digging's component cost of preferred stock, Kps?
a) 17.00%
b) 11.66%
c) 10.38%
d) 11.70%
e) 11.00%

23. The type of bonds that pay regular coupon interest are classified as
a) forward bond
b) payment bonds
c)couponbond
d) interest bonds

24. If a project's. exceeds the firm's weighted average cost of capital (WACC), its
net present value (NPV) will be positive.
a) marginal cost of capital
b) incremental operating cash flows
c) inflation premium
d) internal rate of return (IRR)
e) initial investment outlay

Page 4 of 19
 25. A firm makes investments of P2,000 this year, P4,000 next year, and P2,500 the
following year. This form of cash flow pattern is a(n)_
a) ordinary annuity
b) annuity due
c) uneven cash flow stream
C d) lump-sum payment
e) compounded cash flow

26. Under normal circumstances, the weighted average cost of capital (WACC) is used as
the firm's required rate of return because
a) as long as the firm's investments earn returns greater than its WACC, the value of
the firm will not decrease
b) any returns less than the WACC will cover the fixed costs associated with the
capital and provide excess returns to the firm's stockholders
c) it is the average of all the interest rates on the firm's existing debt
d) it is an indication of the returns the firm expects to earn in the future from
investing in capital budgeting projects
e) it represents the average return the firm currently earns on the funds it has
invested in assets

27. A company is considering the purchase of a

copier that costs P5,000. Assume a required
rate of return of 10% and the following cash flow schedule:
Year 1: P3,000
Year 2: P2,000 3CCo tG.)
Year 3: P2,000 22
What is the project's NPV?

a) (P309)
b) P883
c)P1,523
d) P200

28. According to the bond-yield-plus-isk-premium approach, a firm's cost of retained

earnings, Ks, can be estimated by adding a risk premium of 3 to 5 percentage points to
its
a) cost of preferred stock, Kps
b) risk free rate of return
c) before-tax interest cost of debt, Kd
d) Return on equity (ROE)
e) after-tax interest cost of debt, Kdr

29. Malotwane All Citizens Company's stock sells

for P20 per share, its last dividend (Do)
was P1.00, its growth rate is a constant 6 percent, and the company must pay flotation
cost equal to 20 percent when it issues new common stock. What is Malotwane All
Citizens' cost of issuing new common stock?
a) 11.00%%
b) 12.25%
c) 12.63%
d) 11.30%

Page 5 of 19
 e) 11.56%
30. Which one of the following capital budgeting techniques does not take account of the
time value of money?
a) Net Present Vaue
b) Internal Rate of Return
)c)Regular payback
d) Modified Internal Rate of Return

31. Which of the following statements is true about the flotation costs that are incurred
when a fim issues new securities to raise funds?
a) The higher the flotation costs associated with a preferred stock issue, the lower the
firm's cost of preferred stock, Kps.
b) Flotation costs should be added to the per share price of a preferred stock issue to
compute the cost of preferred stock, Kps.
c) Floatation costs should be added to the before-tax weighted average cost of capital to
determine the firm's overall net weighted average cost of capital after taxes.
d) When it incurs flotation costs, the firm normally receives a higher amount of net
proceeds from a security issue than when there are no flotation costs.
e) Floatation costs increase the cost of using funds; e.g., the cost of issuing new common
stock is greater than the cost of retained earnings because the firm must pay flotation
costs to issue new equity.

32. Balete Farm Inc.s beta coefficient is 1.2, the risk-free rate is 10 percent, and the
market risk premium is 5 percent. Based on the capital asset pricing model (CAPM),
what should be Balete's cost of retained earnings?
a) 11%
b) 17%
c) 12%
d) 18%
e) 16%
33. Earnings that are not paid out as dividends to stockholders but are accumulated in the
company's coffers are classified as

a) non-paid earnings
b) common earnings
c) retained earnings
d) preferred earnings
34. In capital budgeting a discount rate that forces the present value of the future cash
inflows from a project to equal its investment is called
a) Internal Rate of Return
b) Net Present Value
c) Modified IRR
d) Traditional Payback
35. What is the value of a bond that matures in three years, has an annual coupon
payment of P1 10, and a par value ofP1,000? Assume a required rate of return of
1%.
a) P970
b) P1,330
c)P330
d) P1,000

Page 6 of 19
 36. Which of the following statements is correct? Assume everything else equal.
a) Riskier assets always have higher market values.
b) Riskier assets are more valuable than (preferred to) less risky assets.
)The sooner cash is received, the more valuable it is.
d) Investors generally prefer short-term, high-risk assets investments.
e) Investors generally receive higher returns on investments with low Iisk than
investments with high risk.
37.Ten years ago, Matlotlo purchased an investment for P22,500. The investment earned
7 percent interest each year. What is the value of the investment today?
a) P36,667.76
b) P38,250.26
c) P40,527.37
d) P44,260.91
e)P46,458.63

38. The prices at which the currency of one country can be converted into the currencies

of other countries are known as

a) procurement prices
b) political risk costs
c) exchange rates
d) conversion costs
e) transfer price
39. Mashoro Company has two mutually exclusive projects to implement (Filling station
and Office space). The arbitrary timeline set for initial investment recovery is 8 years.
Based on Regular payback appraisal technique, filling station payback period is 7
years and Office space is 6 years and 9 months. A reasonable decision is to;

a) Accept both projects

b) Reject both projects
c) Accept Filling station project and Reject Office space project
d) Reject Filling station project and Accept Office space project

40. The primary securities markets are

a) the markets for previously issued securities such as the New York Stock Exchange
b) the markets where financial assets such as stocks and bonds are initially issued
c) the three most important financial markets in any economy
d) the markets for stocks and bonds only

41. Shaun is planning to invest P570in a mutual fund at the end of each of the nexteight
how much will
years. lf his opportunity cost rate is 6 percent compounded annually,
his investment be worth after the last annuity payment is made?
a) P5,055
b) P5,642
c) P5,980
d) P6,026
e) P6,222

Page 7 of 19
 42. The amount in excess of
par value that a
company must pay when it repurchases a security is
known as the

a) call premium
b) preemptive price
c)cumulativedividend
d)participating dividend
e) growth stock

43. For an investment, the average time to maturity is considered as

a) premium time
b) standard time
C)mean time
d) duration

44. Mr. Tjimba of Torumoja Village invested Pula 3000 in two years investment that
gives him 12% interest per Annum. Calculate the future value of investment?
a) P3763.20

b) P3800.20
c) P3982.20

d) P3800.10
45. The possible conflict between managers and owners is sometimes called the

a) principal-subordinate problem
b) principal-agent problem
c)boss-subordinate problem
d boss-agent problem
e) none of the above

46. Robert plans to invest P650 in a savings account at the beginning of each of the next
seven years. If his opportunity cost rate is 5 percent compounded annually, how much
will his investment be worth at the end of seven years?
a) P5,048
b) P5,292
c) P5,557
d) P6,058
e) P6,656
47. The type of bond where the bond's present value is greater than bonds face value is
classified as
a) coupon bond
b) interest bonds
c)discount bond
d) premium bond
48. Future value of interest if it is calculated once a year is classified as
a) One time compounding

Page 8 of 19
 b) Annual compounding
c) Semi-Annual compounding
d) Monthly compounding
e) Spontaneous compounding

49. Ifa firm wants to be able to redeem some ofits preferred stock at some date after
issue, it must
a) pay accumulated dividends to the common stockholders
6) issue the stock at par value at the time of issue
c)incorporate a call provision in the preferred stock issue
d) provide voting rights to preferred stockholders
e) include a pre-emptive right in the preferred stock issue

50. Nyanga Ngombe Ltd has a tax rate of 25%. The current price of thefirm's founders
equity in the form of preference shares is P62.50 and it pays a dividend of P9 per
share. The company incurs a floatation cost of P2.50 per share for new issues. Its
common stock has a market price of P52.50 per share. It has just paida dividend of
P7.55 on this type of stock. The stock is expected to grow at a constant rate of 6%.
The company will incur a floatation cost of 5% ofthe selling price for new common
of
equity. It's before tax cost of debt is 14% The company's capital structureconsists
Debt of P800 000, Pref Shares of P160 000 and the rest being Equity. The equity
portion of the company's capital is 40%. Help Dzo Baya, the Finance Director to
calculate the WACC of this company assuming the company has no retained earnings
to spare.
a) 10.5%
b)15%
c)18%
d) 13.35%
e) Not Enough Information

51. Given that a company has only P250 000 of retained earnings to support the equity
portion of its Capital structure, what is the Retained Earnings Break Point (REp) of
this company assuming a capital proportion of 60% debt, 15% preferred stock and
25% equity.
a) P416 667
b) P1666 667
c)P2500000
rd) P1000 000
e) P333 333
52. The present value of a Pula to be received in the future is
a) More than a pula
b) Less than a pula
)Equal to a pula
d) None of the above

53. The following are different methods that can be used to calculate present and future
values of money EXCEPT.

Page 9 of 19
a) Financial calculator
b) Linear Interpolation
c) Excel Spread Sheets
d) Timelines

54. Identify the external factor that affects the value of a firm's stock.
a)Capital structure decisions
b)General level of economic activity
c) Capital budgeting decisions
d) Dividend policy decisions
e) Cash flow of the fim
to double?
55. At 8% compounded annually, how long will it take P750
a) 6.5 years
b) 48 months
c)9 years
d) 12 years

rates
56. The prices of bonds will be decreased if an interest
a) rises
b) declines
c) equals
d) none of above
in ABSA Bank for two years with
57. Mrs. Hakasheya of Kasane deposited Pula 50,000 she earn?
interest would
an interest rate of 5.5% per Annum. How much
a) P250
b) P240
c)P260 2756C: O.os)
d) P300

58. The management's primary goal is stockholder wealth maximization, which translates
into
price
the of its stock
a) maximizing the value of the firm as
measured by common

share of the stockholders

b) maximizing the earnings per
stockholders
c) maximizing the dividends received by
income earned by the company
d) maximizing the net
e) maximizing the managerial compensation (incentives)

considered as
59. The bonds that do not pay any interest rate are

a) interest free bond

b) coupon bond
zero

c) price less coupon bond

d) useless price bonds
60. Maggie deposits P10,000 today and is promised a return of P17,000 in eight years.
What is the implied annual rate of return?
a) 6.86 percent
b) 7.06 percent 5CeC

c) 5.99 percent
d) 6.07 percent

Page 10 of 19
 FIN 200 FORMULAE SHEET 2022

1. Vs INT(PVIFAkd.n) M(PVIFkd.n)
2. Bond, Vb=INT/(1+rd)1+.....INT(1+rd)t + Call Price/(1+rdn

3. Annuity, PVoA PMT(PVIFAin)

Dps
4. Preference Shares, Vp
Kp
5. PV
FVn
1+in

D1
6. Common Stock,Po

that is
Amount of the initial investnent
trecovered at the start ot the recovery year
Number of years just
before full recovery Total cash How generated
of initial investment
7. Payback Period during the recovery year

INT INT INT INT

+ M
maturity: Vb
=

8. Yield to (1+ra)3 (1+ra) (1t1a)

(1+Ta)(1+r)2
Weight(Ws) x Total Capital(TCBP)
Earnings(for REBP)
=

9. Amount of Retained

10. Dividend, Di= D. (1+8

11. Internal Rate Estimate, IRR-L+ H-D)

N-N
PV cash outflows
TV inflows
12. MIRR
(1+MIRR)"

13. WACC Waka(1-T) +Wpkp +w,ks

14. NPV-CFO+CF]+C +CEN
(1+8 (+ +
15. ks=krF +bi(RPM)

16. Ks= Bond Yield + Risk Premium

Page 11 of 19
Present value interestfactor of $1 per period at i% for n periods, PVIFi,n).
19% 20%
Period 10 2% 3% 4% 5% 6/% 7% 13% 14% 15% 16% 17% 18%
8% 9% 10% 11% 12%
0.855 0.847 0.840 0.833
0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862
0.718 0.706 0.694
2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.797 0.783 0.769 0.756 0.743 0.731
0.842 0.826 0.812
3 0.971 0.609 0.593 0.579
0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624
4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.552 0.534 0.516 0.499 0.482
0.708 0.683 0.659 0.636 0.613 0.592 0.572

5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497|0.476 0.456 0.437 0.419 0.402
6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.352 0.335
0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370
7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 .279
0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467| 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233
9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194
10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 176 0.162
11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135
12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112
13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326
0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 .116 0.104 0.093
14 0.870 0.758 .661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0..141 0.125 0.111 0.099 0.088 0.078
15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.1230.108 0.095 0.084 0.074 0.065
16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054
17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045
18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038
19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031
20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026
25 0.780 0.610 0.478 0.375 0.295 0.233 . 184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010
30 0.742 0.552 0.412 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.026 0.020 0.015 0.012 0.009 0.007 0.005 0.004
35 0.706 0.500 0.355 0.253 0.181 0.130 0.094 0.068 0.049 0.036 0.026 0.019 0.014 0.010 0.008 0.006 0.004 0.003 0.002 0.002
40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001
50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.005 0.003 0.002 0.001 0.001| 0.001 0.000 0.000 0.000 0.000
Present value interest factor of an (ordinarv) annuitv of $1 per period at 1% forn periods, PVIFAin).
14% 15% 16% 17% 18% 19/% 20
13%
Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%11% 12% 0.862 0.855 0.847 840 0.833
0.885 0.877 0.870
0.901 0.893
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 .917 0.909 1.605 1.585 1.566 1.547 1.528
1.690 1.668 1.647 1.626
1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713
2.246 2.210 2.174 2.140 2.106
2.361 2.322 2.283
2.941 2.884 2.402
2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444
.639 .589
.855 2.798 2.743 2.690
4 3.902 3.808 3.717 3.240 3.170 3.102 3.037 2.974 2.914
3.630 3.546 3.465 3.387 3.312
3.199 3.127 3.058 2.991
5 4.853 4.713 .580 4.452 .329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274
3.685 3.589 3.498 3.410 .326
5..795 5.601 4.111 3.998 3.889 3.784
6 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231
3.812 3.706 3.605
6.728 6.472 6.230 4.564 4.423 4.288 4.160 4.039 3.922
6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712
8 7.652 .325 7.020 6.733 6.463 6.210 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837
5.971 5.747 5.535 5.335

8.566 B..162 7.786 7.435 7.108 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031
6.802 6.515 6.247 5.995 5.759

10 9.471 8.983 .530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.0199 4.833 4.659 4.494 4.339 .192
11 10.3368 9.787 9.253 8.760 8.306 7.887 7.499 7.1 6.805 495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 .656 .486 4.327

12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439
13 12.134 11.348 10.635 9.986 9.394 8.853 8..358 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533

14 13.0 12.106 11.296 10.563 9.899 9.295 .745 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 .008 4.802 4.611

15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6462 6.142 5.847 5.575 5.324 5.092 4.876 4.675
16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5405 5.162 4.938 4.730
17 562 14.292 13.166 12.166 1.274 10.477 9..763 9. 122 8.544 8.022 7.549 7.120 6.729 6.373 5.749 5.475 5.222 4. .990 4.775
18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812
19 17.2 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843

20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 963 7.469 7.025 6.623 6.259 5.9295.628 5.353 5.101 4.870
25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.1955 4.948
30 808 22.396 19.600 17.292 15.3 13.7
.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4.979

35 409 24.999 21.487 18.665 16.374 14.498 12.948 11.665 10.567 9.644 8.855 8.176 7.586 7.070 6.617 6.215 5.858 5.539 5.251 .992
40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997
50 39.196 31.424 25.730 21.482 18.256 15.762 13.80112.233 10.962 9.915 9.042 8.304 7.675 7.133 6.661 6.246 5.880 5.554 5.262 4.999

13
 PRESENT VALUE OF ANNUITY DUE
(annuity in advance beginning of period payments)
- -

RATE PER PERIODD

0.25% 0.50% 0.75% 1 00% 8.00% 00% 10.00% 11.00% 12.00%
1.50% 2.50% 3.00% 4.00% 5.00% 6.00% 7.C0%
1.0CC00 1.00000 1.00000
1.00000 1.0C000 1.000C0 1.00000t.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
1.99751 1.90909 1.90090 1.89286
1.99502 1.99258 1.99010 .98522 1.98039 1.97561 1.97087 1.98154 1.95238 1.94340 1.93458 1.92593 1.91743
2 99252 2.75911 2.73554 2.71252 2.69005
2.98510 2.97772 2.97040| 2.95588 2.94156 2.92742 291347 2.88E09 2.85941 2.83339 2.80802 2.78326
3.98E05 3.97025 3.95E6 3.94099 3.91220 3.88388 3.85602 3.82861 3.77509 .72325 387301 352432 3.57710 3.53129 3.48685 3.44371 3.40183
4.97512 4.9S050 492611 490197 4.85438 4.16937 4.10245 4.03736
4.80773 4.76197 4.71710 4.62990 4.54595 4.48511 4.38721 4.31212 4.23972
5 95272 5.92587 5.889445.85343 578284 5.71346 5.64583 5.57971 5.45182 5.10020 4.99271 4.88965 4.79079 4.89590 4.60478
5.329485.21236
E.94785 6.89638 6.84560 6.79548 6.69719 660143 6.50813 641719 6.24214| 6.075E9 | 5.91732 5.76654 5.62288 5.48592 5.35526 5.22054 5.11141
7.93052 7.86207 7.79464 7.72819 7.59821 7.47199 7.34939 7.23028 7.00205 6.78637 .S6233 | 6.38929 | 6.20837 6.03295S.86242 s.71220 S.56376
9107e.82298 8.73661 &65168 8.48593 8.32548 8.17014 8.01969 7.73274 7.46321 7.209796.97130 6.74664 6.53482 8.33493 6.14512 5.s676
10 9.E2 9.77908 9.67158 9.56602|9.36052| 9.16224 8.97087 &.78611 8.43533 810782 7.80169 7.51523 7.24889 8.99525 8.75902 6.53705 6.32825
t1 10.288 10.73041 10.599ss 10.47130 10.22218 9.98259 9.75206 9.53020 9.11090 8.72173
8.360098.02358 7.71008 7.41766 7.14457 6.83923 6.65022
12 11.83677 11.67703 11.52067| 11.36763 11.07112 10.78685 10.51421 10.25262 9.76048 9.30641 8.88687 8.49867 8.13896 7.80519 7.49506 7.20652 6.92770
13 1280725 12.61893 12.43491 12.25508 11.9075111.57534 11.25776 10.95400 10.38507 986325 9.38284 8.94269 85360 .16073 7.81269 7,49226 7.19437
14 13.77532 13.5661S 13.3422s 13.13374 12.73153| 12.34337 11.93318 11.63495 10.98565 10.39357 9.85268 9.3576s 8.90378 848690 8.10336 7.74987 7.42355
514740 14.438371 1424202 14.00370 13.54338 13.10625 12.69081 12290o7|11.58312 1089264 10.28498 974547 824424 a781 7.93187 7.62817
18 15.70420 15.41662 15.13699 14.86505|14.34323 13.84928 13.38138 12:93794 12.11839 11.37966 10.71225 10.10791 9.55943 9.06089 8.60608 8.19087 7.81088
17 16.8s04| 16.33993 16.02431 15.71787 15.13126 14.05500 | 13.56110 12.65230 11.83777 11.10590 10.44665| 9.85137 9.31256 .52371 8.37916 7.97399
14.57771
18 17.62343 17.25363 16.90502 16.562515.90765|15.29187 14.71220 14.16612 13.16567 12.27407 11.47726 10.76322 10.12154 9.54363 9.021SS 8.54879 8.11963
9 1857953 18.17277 17.77918 17.39827 16.67256 15.99203 15.36326 | 14.75351
13.85930 12.68959 11.8270 11.05909 10.37189 S.75583 9.201418.70162 8.24967
20 19 2320 19.c823e 1864683 18.22601 17.42617 16.67846 15.97889 15.32380 14.13394
13.08532 12.15812 11.33560 10.60360 9.95011 9.38492 8.83929 8.36578
21 20.424919.98742 19.50302 19.04555 18.16864 17.3S143 16.58916 15.87747| 14.59033|13.46221 12.4699211.59401 10.8181S 10.12855 9.51356 8.e6333 s46944
22 21.42240 20 8879s | 20.36280 19.85693 | 18.90014 18.01121 17.18455 16.41802
15.02916 12.82115 12.76408 11.83553 11.01680 10.29224 9.648699.07507 s.s6200
22 37 2178408 2121121 2038028 19.62082 18.85805 176541 163392 1545112 14169001204158 12.06124 11.2074 10.4243 9:7154 9.1757 54485
2 222414 22E7s68 2.0531| 21.45s32 20.302 192920 18.:23211 17.431 15.8584 14.48857 13.3038 12.27219|11.37106 10.5s021 9.88322 8243 871543
25
2428598 23.sE287 22.23915 2224339 21.03041 19.91393
13.55036 12.46933 11.5287 10 70661 98474 9.34314 S.78432
1888499 17 93554 16.2466 14.79864
30239404 21.9230228.97589 250579 24.37808 2284438 21.4535s 20.1834 17.98571 18.14107|1459072 13.27767 1215841 11.19628 10.3691 96501 .02181
3539 511 32.195e 20.51278 23.70267 27.48173 25.45859|23.72378 22.13184 19.4120 17.19290 15.36814 1395401 1258693 11.51784| 10.60857 982932 8.15853
02311491 82520934.70529 23.16203 30.384s8 27.90259 25.73034 23.80822 20.58446 18.01704 15.94907 14.28483 1287858| 11.725s2 10.75896 9 93s87 9.23303
047 0635414428350|41.37820 3958808 35.s2458 32.05208 |25.07137 |26.5016 22.34147|19.16872 18.70757|14.7660 1321213 1194323 10$0830 10.03824 9.30104
4
Future value interest factor of S1 per period at i% for n periods, FVIF(,),
Period 1% 2% 3% 4% 5% 12% 13% 14 15% 17% 17% 18% 19% 20
6% 7% 8% 9% 10% 11%
1 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.130 1.140 1.150 1.160 1.170 1.180 1.190 1200
1.110
21.020 1.040 1.061 1.082 1.103 1.124 1.145 1.323 1.346 1.369 1.392 1416 1440
1.166 1.188 1.210 1.232 1.254 1.277 1.300
3 1.030 1.061 1.093 1.125 1.158 1.191 1225 1.260 1295
wwwr
1.331 1.368 1405 1.443 1.482 1.521 1.561 1.602 1.643 1.685 1.728
4 1.041 1.082 1.126 1.170 1216 1262 1311 1.360 1412 1.464 1518 1.574 1.630 1.689 1.749 1.811 1.874 1.939 2.005 2.074
5 1.051 1.104 1.159 1.217 1276 1.338 1403 1.469 1.539 1.611 1.685 1.762 1842 1.925 2.011 2.100 2.192 2.288 2.386 2.488
61.062 1.126 1.194 1.265 1340 1.419 1501 1.587 1.677 1.772 1870 1974 2.082 2.195 2313 2.436 2.565 2.700 2.840 2.986
7 1.072 1.149 1230 1.316 1407 1.504 1.606 1.714 1.828 1.949 2076 2211 2363 2.502 2.660 2.826
2.825 3.001 3.185 3.379 3.583
8 1.083 1.172 1.267 1.369 1477| 1.594 1.718 1.851 1.993 2.144 2.305 2.476 2.658 2.853 3.059 3.278 3.511 3.759 4.021 4.300
9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.558 2.773 3.004 3.252 3.518 3.803 4.108 4.435 4.785 5.160
101.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 2.839 3.106 3.395 3.707 4.046 4.411 4.807 5.234 5.695 6.192
111.1161.243 1.3841.539 1.710 1.898 2.105 2.332 2.580 2853 3.152 3479 3.836 4.226 4.652 5.117 5.624 6.176 6.777 7.430
12 1.127 1268 1426 1.601 1.796 2012 2252 2518 2813 3.138 3.498 3.896 4.335 4.818 .350 5.936 6.580 7.288 8.064 8.916
13 1.138 1.294 1469 1.665 1.886 2.133 2.410 2.720 3.066 3452 3.883 4.363 4.898 5492 6.153
6.153 6.886 7.699 8.599 9.596 10.699
141.149 1.319 1.513 1.732 1.980 2261 2579 2937 3342 3.797 4.310 4887 5.535 6.261 7.076 7988
7.988 9.007 10.147 11.420 12.839
151.161 1.346 1.558 1.801 2079 2.397 2.759
3.172 3642 4.177 4.785 5.474 6254 7.138 8.137 9266 10.539 11.974 13.590 15.407
161.173 1.373 1605 1.873 2.183 2.540 2952 3.426 3.970 4.595 5.311 6.130 7.067 8.137 9.358 10.748 12.330 14.129 16.172 18.488
171.184 1400 1.653 1.948 2.292 2.693 3.159 3.700 4.328 5.054 5.895 6.866 7.986 9276 10.761 12.468 14426 16.672 19.244 22.186
181.196 1428 1.702 2.026 2407 2854 3380 3.996 4717 5.560 6.544 7.690 9024 10575 12.375 14.463 16.879 19.673
7263 8.613 10.197 12.056
22901 26623
191.208 1457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 14.232 16.777 19.748 23.214 27 252 31.948
20 1.220 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.727 8.062 9646 11523 13.74316.367 19.461 23.106 27.393 32.429 38.338
25 1.282 1.641 2.094 2666 3.386 4.292 5.427 6.848 8.623 10.835 13.585 17.000 21.231 2646232.919 40.874 50.658 62.669 77.388 95.396
30 1.348 1.811 2.427 3.243 4.322 5.743 7.612 10.063 13.268 17.449 22.892 29.960 39.116 50.950 66212 85.850 111.065 143.371 184.675 237.376
35 1417 2000 2.814 3.946 5516 766 10.677 14.785 20414 28.102 38575 52.800 72.069 98.100 133.176 180314 243.503 327.997 440.701 590668
40 1.489 2208 3262 4801 7.040 10.28614.974 21.725 31.409 45.259 65.001 93.051 132.782 188.884 267864 378.721 533.869 750.378 1051.668 1469.772
50 1.645 2692 4.384 7.107 11.467 18.420 29.457 46.902 74.358 117.391 184.566 289.02 450.736 700.233 1083.667|1670.704 2 56.215 3927.357 5 98.914 9100.438

5
 FuTure valueinterest factor of an ordinary annuity of $1 per period at1% forn periods, FVIFAG
Peri 1% 2% 3% 4% 5% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 2
6% 7% 8% 9%
1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 . 000 1.000 1.00
1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

2.160 .170 2.180 2.190 2.201

2 2.010 2.020 2.030 2.040 2.050 2.060 2.100 2.T110 2.120 2.130 2.140 2.150
2.070 2.080 2.090
3.030 060 3.091 3.473 3.506 3.539 3.572 3.606 3.641
3.122 3.153 3.184 3.215 .246 3.278 3.310 .342 3.374 3.407 3.440
4.060 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.710 4.779 4.850 4.921 4.993 5.066 5.141 5.215 5.291 5.36
5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.228 6.353 6.480 6.610 6.742 6.877 7.014 7.154 7.297 7

6.152 6.308 468 6.633 6.802 6.975 7.153 7.336 7.523 8.323 8.536 8.754 8.977 9.207 9.442 9.683 9.93
7.716 7.913 8.115
7.214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 12.523 12.911
9.487 9.783 10.089 10.405 10.730 11.067 11.414 11.772 12.142
8.286 8.583 8.892 9.214 9.549 9.897 .260 10.637 11.028 436 859 12.300 12.757 13.233 13.727 14.240 14.773 15.327 15.902 16.49!
9.369 9.755 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.579 14.164 14.776 15.416 16.085 16.786 17.519 18.2 19.086 19.923 20.7
10 10.462 10.95011.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 16.722 17.549 18.420 19.337 20.304 21.321 22.393 23.521 24.709 25.95!
11 11.567 12.169 12.808 13.486 14.207 14.972 15.784 16.645 .560 18.531 19.561 20.655 21.814 23.045 24.349 25.733 27.200 28.755 30.404 32.1
12 12.683 13.412 14.192 15.026 15.917 16.870 17.888 18.977 20.141 21.384 22.713 24.133 25.650 27.271 29.002 30.850 32.824 34.931
13 13.809 14.680 15.618 16.627 17.71
37.180 39.58
18.882 20.141 495 22.953 24.523 26.212 28.029 29.985
14
32.0 34.352 36.786 39.404 42.219 45.244 48.49
14.947 15.974 17.086 18.292 19.599 21.015 22.550 24.215 26.019 27.975 30.095 32.393 34.883 37.581 40.505 43.672 47.103 50.818 54.841 59.1
15 16.097 17.293 18.599 .024 21.579 23.276 25.129 27.152 29.361 31.772 34.405 37.280 40.417 43.842 47.580 51.660 110 60.965 66.261 72.03!
16 17.258 18.639 20.157 21 .825 657 25.673 27.888 30.324 33.003 35.95039.190 42.7753 46.672 50.980 55.717 60.9 66.649 72.939 79.850
17 18.430 20.012 21.762 23.698 25.840 28.213 30.840 33.750 36.974
7.44
40.545 44.501 48.884 53.739 59.118 65.075 71.673 78.979
18 19.615 21.412 23.414 25.645 28.132
87.0 96.022 105.9
30.906 33.999 37.450 41.301 45.599 50.396 55.750 61.725 68.394 75.8 84.141 93.4 103.74 115.27 128.1
19 20.811 22.841 25.117 27.671 30.539 33.7 37.379 41.446 .018 51.159 56.939 63.440 70.749 78.969 88.212 98.603 110.28 123.41 138.17 154.7
20 22.019 24.297 26.870 29.778 33.06636.786 40.995 45.762 51.160 57.275 64.203 72.052 80.947 91.025 102.44115.38
130.03 146.63165.42 186.6!
25 28.243 32.030 s.459 41.646 '.727 54.865 63.249 73.106 84.701 98.347 114.41 133.33 155.62 181.87 212.79 249.21 292.10 342.60 402.04 471.91
30 34.785 40.568 47.575 56.085 66.4 79.058 94.461 113.28 136.31 164.49 199.02 241.33 293.2 356.79 434.75 530.31 647.44 790.9 966.71 1 181.
35 41.660 49.994 60.462 73.652 90.320 111.43 138.24 172.32 215.71 271.02 341.59 431.66 546.68 693.57 881.17 1 120.7 1 426.5 1 816.7 2314.2
40
2 948.:
48.886 60.402 75.401 95.026 120.80 154.76 199.64 259.06 337.88 442.59 5811.83 767.09 1013.7 1 342.0 1 779.1 2 360.8 3 134.5 4 163.2 5 529.8 7 343.!
50 64.463 84.579 112.80 152.67 209.35 290.34 406.53573.77 815.08 1 163.9 1 668.8 2 400.0 3 459.5 4 994.5 7217.7 10 436 15 090 2181331 51545 49

6
 FUTURE VALUE OF ANNUITY DUE
(annuity in advance -- beginning of period payments)
RATE PER PERIOOD
.25% .50% 0.75% 1.00% 1.50% 2.00% 2.50% 3.00% 4.00% 5.00% 6,00% 00% 8.00% 9.00% 10.00% 11.00% 12.00%
1.00250 1.00500 1.00750 1.01000 | 1.01SC0 1.02000 1.02500 1.03000| 1.04000 1.0sooo 1.06o00 1.07000 1.10000| 1.11000 1.12000
1.08000 1.09000
2.00751 2.01502 2.02256 2.03010 2.04522 2.08040 2.07563 2.09090 2.12160 2.15250 2.18350 2.21490 2.24640 2.27810 2.31000 2.342102.37440
3.01503 3.03010 3.04523|
3.0E0403.09090 3.12161 3.152523.1863 3.24646 3.31013 3.37462 3.43994 3.50611 3.57313 3.64100 3.70973 3.77933
4.02505 4.05025 4.10101 4.15227 4.20404
4.25633 4.30914 441632 4.52563| 463709 4.75074 4,86660 4.98471 5.10510 5.22780 5.35285
S5.03763 5.07550 S.11363 5.15202| 5.229555.30812|5.38774 5.46841 5.63293 S.80191 5.97632 6.15329 6.33593 6.52333 6.71561 8.91286 7.11519
6.05272 5.10588 6.15948 6.21354 6.32299
7 7.07035 7.14141 7.21318 7.28567
843428 6.54743 6.68245 6 89829 7.14201 7.39384 7.65402 7.92280 8.20043 8.48717 8.78327 9.08901
8 8.09053 8.18212 8.27478
743284 7.58297 7.73612 7.89234 8.21423 8.54911 89747 9.25980 9.52863 10.02847 10.43589 10.85943 11.29969|
8.368588.S5933 8.75463 8.95452 9.15911 9.58280 10.02656 10.49132
3.11325 9.22803
9.344349.46221 9.70272 9.94972 10.20338|10.4638811.00611 11.57789 12.18079 10.97799 12.81645
11.48758 12.02104 12.57948 13.16397| 13.775&
13.48856 14.19293 14.93742 15.7220 16.54874|
10.13854 10.27917
10.42192 10.56683 10.86326 11.16872 11.48347 11.80780 12.48635
11
11.16638 11.33EE6 | 11.507S9 11.6825t 1204121 1241209 12.79555 13.19203| 14.02581 13.20679 13.97164 14.78360 15.64549 16.56029 17.53117 18.56143| 19.65458
14.91713 15.86994 | 16.88845 17.97713 19.14072 20.38428 21.71319 23.13213
2 121660
12.39724 12.60139 12.80932 13.2368313.68033 14.14044 14.61779 15.62624 16.71298 17.88214 19.14064 |
3 13.22279 13.48423
13.70340 13.94742 14.4503814.97394 15.81895 18.08632 17.29191 18.5953 20.01507 20.49530 21.95338 23.s227 25.21164 27.02911
14.26537 14.53855 | 14.81368 15.09690 21.55049 23.21492 25.01919
15.68214 16.29342 16.93193 17.59891 19.02359 20.57858| 22.27597 |24.12902 28.15211 26.97498 29.09492 31.39260
15.30353 15.61423 15.93228| 16.25785
16.93237 17.63929 18.3802 19.15688 20.82453 | 226S749 24.67253| 26.88805 28.38092 30.77248 32.40536 | 38.27971

18.20136 19.01207| 19.8473 20.761S9 22.69751 24.84037 | 27.21288 29.84022 29.32428

32.00340 34.94973 38.189Gs 41.75328
15 16.34429 16.69730 17.05927 17.43044 |
17 17.28785 17.78S79 32.75023 35.97370 39.54470 43.5008+| 47.28367
13.19472 18.81475 19.48935 | 20.41231 21.38635 |22.41444 24.64541 27.13238 29.90s85 |32.99903 36.45024
19.33888| 19.81090 20.7672 21.84056 22.94601 24.11687| 26.67123 29.5390032.75999 3.37896 | 40.44626 | 45.01846 44,59917
18 1243382 18.87972 40.30134 49.39594 54.74971
19 1948220 19.97912 20.49122 21.01900 22.12367 50.159os 55.93949 62.43g68
23.29737 24.54466 |25.87037 28.778308| 32.06595 | 35.785S9 | 39.99549 44.76196 S0.16012 56.275o0
20 20.5224121.08401 21.65240 22.23919
23.47052 24.78332 26.18327 27.67649 30.96920 34.71925| 38.99273 43.86518 49.42292 55.76453 63.20283 71.05244
21.56724 22.19443 22.82230| 23.47159 | 24.83756
26.29898 | 27.86236 63.C02s0 71.28514 s0.59874|
22 22.64371 22.31040 24.000ss 24.71630 |
|29.53678|33.24797 37.50521
42.3922948.00574 54.45676 61.87334 70.40275 80.2143191.50258
28.22S14 27.84498 29.S8443 314523835.61789 40.43048 45.99583 $2.43614|S9.8933068.$3194 78.54302 90.14782 103.6029
23 23.70282 24.43196 25.18847 25.97346
27.63352 29.42186 31.34904 33.4264738.0828043.50200|49.81558|57,17657 65.76476|75.78981|87.49733 101.1742 117.1552
24 24.784S7 |25.55912 26.38488 27.24320 29.06302
31.03020| 33.15778 35.4592|40.6459148.7271053.86451 62.24904 72.10594 83.70090
30.51397 | 32.67091 35.01171 37.55304 43.31174|50.113458.15638 6767647 | 78.95442 92.32398 97.34706
25 25.828s9 | 28.69191 27.59027 28.52563 1 113.4133 132.3339
103.1818 126.9988 | 149.3339
30 31.19109| 32.44142 33.75417 35.13274 38.10176 |
41.37944 45.00027 49.00268 58.32834 69.76079 83.80188 101.0730 122.3459 148.5752 180.9434 220.9132| 270.2926
35 28.62056 38.32610 40.15272 42.07688 46.27597 | 50.99437
56.30141 62.27594 76.59831 94.83632 | 118.1209 147.9135 188.1021 |235.1247 298.1268 37s.1644 483,4631
40 42.11824| 44.37964 46.79483| 49.37524
55.08191 61.81002 69.08762|77.66330 98.82654 128.8398 164.0477 213.6096 | 279.7810 368.2919 486.8518 645.8269 859.1424
so 52.32155 s6.9z329 60.84721 65.10781 74.78807 86.27099 99.92148 116.180e 158.7738|219.8164 |307.7s61 434.960 619.6718 88.4411 1280.299 1852.326 2688.020
17