Agriculture Reference
In-Depth Information
Table 13.4 Present value of $1 at compounded interest for an equal series of payments
Year(N)
1 %
3 %
5 %
6 %
7 %
1
0.9901
0.9709
0.9524
0.9434
0.9346
2
1.9704
1.9135
1.8594
1.8334
1.8080
3
2.9410
2.8286
2.7232
2.6730
2.6243
4
3.9020
3.7171
3.5460
3.4651
3.3872
5
4.8534
4.5797
4.3295
4.2124
4.1002
6
5.7955
5.4172
5.0757
4.9173
4.7665
7
6.7282
6.2303
5.7864
5.5824
5.3893
8
7.5517
7.0197
6.4632
6.2098
5.9713
9
8.5660
7.7851
7.1078
6.8017
6.5152
10
9.4713
8.5302
7.7217
7.3601
7.0236
15
13.8651
11.9379
10.3797
9.7122
9.1079
20
18.0456
14.8775
12.4662
11.4699
10.5940
25
22.0232
17.4131
14.0939
12.7834
11.6536
Year(N)
8 %
9 %
10 %
12 %
14 %
1
0.9259
0.9174
0.9091
0.8929
0.8772
2
1.7833
1.7591
1.7355
1.6901
1.6467
3
2.5771
2.5313
2.4869
2.4018
2.3216
4
3.3121
3.2397
3.1699
3.0373
2.9137
5
3.9927
3.8897
3.7908
3.5048
3.4331
6
4.6229
4.4859
4.3553
4.1114
3.8887
7
5.2064
5.0330
4.8684
4.5638
4.2883
8
5.7466
5.5348
5.3349
4.9676
4.6389
9
6.2469
5.9952
5.7590
5.3292
4.9464
10
6.7101
6.4177
6.1446
5.6502
5.2161
15
8.5595
8.0607
7.6061
6.8109
6.1422
20
9.8181
9.1285
8.5136
7.4694
6.6231
25
10.6748
9.8226
9.0770
7.8431
6.8729
year but 1 percent per quarter. This adjustment process can be generalized using the following
formula:
Future Value P esent Value 1im
Where nNmber of Yea
Present Value
(
)
mn
/
=
1
nNumber of Years Compounding Occurs
a
iAnnual Interest Discount
( )
umber of Times Compounding Occurs during the Year
Rate
mN
u
 
 
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