YG5813I SEE THE LIGHT
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Building Blocks of Accounting–A
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F710
160825
YG5813.xls, or YG5813.xlsx,
Elf Village
Productions
50 Sheet
Legal Pad
Building Blocks of Accounting .. A Financial Perspective
Page 1
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Elf Village
Productions
50 Sheet
Legal Pad
Building Blocks of Accounting .. A Financial Perspective
FAQ
FAQ 02
Answer:
What is the difference between rounding a number and rounding up a number?
B
1
2
3
4
5
6
7
C
D
E
F
Cost of a Taxi $ 100.00
Number of Passengers
3
Cost per Passenger
Without rounding 33.33333
=F1/F2
Rounding to two decimals
33.33
=ROUND(F1/F2,2)
Roundup to two decimals
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=ROUNDUP(F1/F2,2)
FAQ 03
When I upload it, the results show that I have an answer wrong, yet that answer is needed for another
question which is marked correct.
Answer:
The computer is giving you part credit.
Given: Width 10 ft
Length 12 ft
Cost per sq. ft. $6
Find
{1.1} Area —– 100 sq ft (wrong)
{1.2} Cost —- $600 correct based on the wrong area.
Note if the area is corrected,120 sq ft, the cost would be wrong.
Page 2
FIRST
Yifeng
LAST
Ge
number
5813
File
YG5813
I SEE THE LIGHT
Background Information
I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children’s lamps/nightlights
for use in bedrooms. These lamps are sold nationwide through a group of independent sales
representatives who have an exclusive sales region. The business is in its tenth year and has asked
you to assist in planning for next year’s operations.
The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful
colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in
China where a mold is created and a sample produced and hand painted. If the mold meets the
expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts
required to complete one lamp; a figurine, a lamp shade and the required electrical components.
There are presently 10 different figurines that come in six different colors; 60 models.
There are presently 10 workers in the plant. They are responsible for receiving the raw material,
manufacturing the product, packing and shipping. In addition to Big Al there are two office workers
who are responsible for all administrative duties.
Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on
page two. Big Al heard about your skills in managerial accounting and would like your assistance in
the following areas:
Part 1
Part 2
Part 3
Part 4
Part 5
Part 6
Part 7
Fixed and Variable Cost Determinations – Unit Cost Calculations
Cost Volume Relationships – Profit Planning
Budgets
Process Costing
Job Order Costing
Standard Costing – Variance Analysis
Capital Decision Making
To upload your work to Big Al the file without changing the name. Pay attention to the specific
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Keep two copies of your spreadsheet in two separate places in case one of Big Al’s competitors
sends someone to destroy your work or it is lost in transmission.
You may find it easier to work on this project if you print a hard copy of all the pages.
NOTE:
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Grade will be based upon answers entered into the shaded boxes.
Page 2
I See The Light
Projected Income Statement
For the Period Ending December 31, 20×1
Sales
25,000 lamps
Cost of Goods Sold
Gross Profit
Selling Expenses:
Fixed
Variable
(Commission per unit)
Administrative Expenses:
Fixed
Variable
Total Selling and Administrative Expenses:
Net Profit
@ $45.00
@ $30.00
$ 1,125,000.00
750,000.00
$ 375,000.00
@ $3.00
$ 23,000.00
75,000.00
$ 98,000.00
@ $2.00
$ 42,000.00
50,000.00
92,000.00
$
190,000.00
185,000.00
I See The Light
Projected Balance Sheet
As of December 31, 20×1
Current Assets
Cash
Accounts Receivable
Inventory
Raw Material
Lamp Kits
Work in Process
Finished Goods
Total Current Assets
Fixed Assets
Equipment
Accumulated Depreciation
Total Fixed Assets
Total Assets
Current Liabilities
Accounts Payable
Total Liabilities
Stockholder’s Equity
Common Stock
Retained Earnings
Total Stockholder’s Equity
Total Liabilities and Stockholder’s Equity
$
500 @ $16.00
0
3000 @ $30.00
34,710.00
67,500.00
$
8,000.00
90,000.00
200,210.00
$
13,200.00
213,410.00
$
$
54,000.00
54,000.00
$
159,410.00
213,410.00
$ 20,000.00
6,800.00
$ 12,000.00
147,410.00
Page 3
Yifeng Ge
6084
PART 1
Fixed and Variable Cost Determinations
Unit Cost Calculations
The projected cost of a lamp is calculated based upon the projected increases or decreases to
current costs. The present costs to manufacture one lamp are:
Lamp Kit:
Direct Labor:
Variable Overhead:
Fixed Overhead:
$16.0000000
2.0000000
2.0000000
10.0000000
per lamp
per lamp (4 lamps/hr.)
per lamp
per lamp (based on normal capacity of 25,000 lamps)
Cost per lamp:
$30.0000000 per lamp
Expected increases for 20×2
When calculating projected increases round to TWO ($0.00) decimal places.
1. Material Costs are expected to increase by 5.00% .
2. Labor Costs are expected to increase by 5.00%.
3. Variable Overhead is expected to increase by 4.00%.
4. Fixed Overhead is expected to increase to $275,000.
5. Fixed Administrative expenses are expected to increase to $44,000.
6. Variable selling expenses (measured on a per lamp basis) are expected to increase
by 4.00%.
7. Fixed selling expenses are expected to be $31,000 in 20×2.
8. Variable administrative expenses (measured a per lamp basis) are expected to
increase by 6.00%.
On the following schedule develop the following figures:
1- 20×2 Projected Variable Manufacturing Unit Cost of a lamp.
2- 20×2 Projected Variable Unit Cost per lamp.
3- 20×2 Projected Fixed Costs.
Page 4
Yifeng Ge
6084
I See The Light, Inc
Schedule of Projected Costs
Variable Manufacturing Unit Cost
20×1 Cost
16
Projected
Percent
Increase
5.00%
$16.80
{4.01}
2
Labor
2
5.00%
$2.10
{4.02}
Variable Overhead
2
4.00%
$2.08
{4.03}
2
2
$20.98
{4.04}
2
Lamp Kit
20×2 Cost Rounded to 2
Decimal Places
Projected Variable Manufacturing Cost Per Unit
Total Variable Cost Per Unit
20×1 Cost
Projected
Percent
Increase
20×2 Cost Rounded to 2
Decimal Places
Variable Selling
3.12
{4.05}
Variable Administrative
2.12
{4.06}
Projected Variable Manufacturing Unit Cost
20.98
{4.04}
2
2
2
Projected Total Variable Cost Per Unit
26.22
{4.07}
2
Schedule of Fixed Costs
20×1 Cost
Projected
Percent
Increase
20×2 Cost
$
275,000.00
{4.08}
2
Fixed Selling
$
31,000.00
{4.09}
Fixed Administrative
$
44,000.00
{4.10}
2
2
Projected Total Fixed Costs
$
350,000.00
{4.11}
2
Fixed Overhead
(normal capacity of _________ lamps @ __ )
Page 5
Yifeng Ge
6084
PART 2
Cost Volume Relationships Profit Planning
Big Al is about to begin work on the budget for 20×2 and they have requested that you prepare an analysis
based on the following assumptions.
Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round
up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the
number of units and then multiply by the selling price per unit.
1.
For 20×2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution
margin ratio for each lamp sold?
$18.78
{5.01}
2
41.73%
{5.02}
4
28,488 units
{5.03}
0
21,832 units
{5.04}
0
Contribution Margin per unit (Round to two places, $##.##)
Contribution Margin Ratio (Round to four places,% is two of those places ##.##%)
2.
For 20×2 the selling price per lamp will be $45.00. The desired net income in 20×2 is $185,000 . What
would sales in units have to be in 20×2 to reach the profit goal?
Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)
3.
For 20×2 the selling price per lamp will be $45.00. If the fixed cost increase by $60,000.00 how many lamps
must be sold to breakeven?
Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)
Page 6
Yifeng Ge
6084
4.
For 20×2 the selling price per lamp will be $45.00. If the variable cost increase by $6.00 a unit how many lamps
must be sold to breakeven?
Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)
5.
0
14,124 units
{6.02}
0
14,124 units
{6.03}
0
27,387 units
{6.04}
0
If for 20×2 the selling price per lamp is increased to $51.00 a unit how many lamps must be sold
to breakeven?
Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)
7.
{6.01}
For 20×2 the selling price per lamp will be $45.00. If the variable cost decreased by $6.00 a unit how many lamps
must be sold to breakeven?
Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)
6.
27,387 units
If for 20×2 the selling price per lamp is decreased to $39.00 a unit how many lamps must be sold
to breakeven?
Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)
Page 7
Yifeng Ge
6084
PART 3
Budgets
Division N has decided to develop its budget based upon projected sales of 25,000 lamps at
$50.00 per lamp.
The company has requested that you prepare a master budget for the year. This budget is to be used
for planning and control of operations and should be composed of:
1. Production Budget
2. Materials Budget
3. Direct Labor Budget
4. Factory Overhead Budget
5. Selling and Administrative Budget
6. Cost of Goods Sold Budget
7. Budgeted Income Statement
8. Cash Budget
Notes for Budgeting:
The company wants to maintain the same number of units in the beginning and ending inventories of
work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 625 pieces and
decreasing the finished goods by 20%.
Complete the following budgets
1 Production Budget
Planned Sales
Desired Ending Inventory of Finished Goods
Total Needed
Less: Beginning Inventory
Total Production
25000
24,250 units
{7.01}
0
Page 8
Yifeng Ge
6084
2 Materials Budget
Lamp Kits
Needed for Production
Desired Ending Inventory
Total Needed
Less: Beginning Inventory
Total Purchases
Cost per piece
Cost of Purchases (Round to two places, $##.##)
$
$
24,250 units
625 units
24,875 units
500 units
24375
16.80
409,500.00
{8.01}
{8.02}
{8.03}
{8.04}
0
0
0
0
{8.05}
{8.06}
2
0
3 Direct Labor Budget
Labor Cost Per Lamp
Production
Total Labor Cost (Round to two places, $##.##)
$
2.10
{8.07}
2
$
50,925.00
{8.08}
2
$
2.0800000
$
$
50,440.00
275,000.00
{8.09}
{8.10}
2
2
$
325,440.00
{8.11}
2
4 Factory Overhead Budget
Variable Factory Overhead:
Variable Factory Overhead Cost Per Unit
Number of Units to be Produced
Total Variable Factory Overhead (Round to two places, $##.##)
Fixed Factory Overhead
Total Factory Overhead (Round to two places, $##.##)
Page 9
Yifeng Ge
6084
4 Factory Overhead Budget
Overhead Allocation rate based on:
1. Number of Units
Total Factory Overhead / Number of Units
(Round to two places, $##.##)
24250
325700
$13.43
{9.01}
2
$2.10
{9.02}
32.33
{9.03}
2
2
2
2
{9.04}
2
{9.05}
{9.06}
2
2
Round dollars to
two places, $##.##
$
90,000.00
{9.07}
2
$
$
$
$
8,000.000
409,500.000
417,500.000
10,550.00
406,950.000
{9.08}
2
$
$
$
$
$
$
406,950.00
50,925.00
325,700.00
873,575.00
77,592.00
795,983.00
{9.09}
{9.10}
{9.11}
{9.12}
{9.13}
{9.14}
2
2
2
2
2
2
5 Cost of making one unit next year
Cost of one Lamp Kit
Labor Cost Per Lamp
Factory overhead per unit
Total cost of one unit
(Round to two places, $##.##)
$
6 Selling and Admin. Budget
Fixed Selling
Variable Selling (Round to two places, $##.##)
Fixed Administrative
Variable Administrative (Round to two places, $##.##)
Total Selling and Administrative (Round to two places, $##.##)
Cost of
Goods
7 Sold
Budget
Beginning Inventory, Finished Goods
Production Costs:
Materials:
Lamp Kits:
Beginning Inventory
Purchased
Available for Use
Ending Inventory of Lamp Kits
Lamp Kits Used In Production
Total Materials:
Labor
Overhead
Cost of Goods Available
Less: Ending Inventory, Finished Goods
Cost of Goods Sold
$
$
31000
$78,000.00
44000
53,000.00
206,000.00
Page 10
Yifeng Ge
6084
7 Budgeted Income Statement
Sales
Cost of Goods Sold
Gross Profit
Selling Expenses & Admin. Expenses
Net Income
$206,000.00
{10.01}
2
8 Cash Budget
Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and
Payables of 12/31/x1 will have a cash impact in 20×2.)
1. 15.00% of sales for the year are made in November and December. Since our customers have 60 day terms
those funds will be collected be collected in January and February.
2. 86.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February.
3. All other manufacturing and operating costs are paid for when incurred.
4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses.
5. Minimum Cash Balance needed for 20×2, $170,000 .
I See The Light
Projected Cash Budget
For the Year Ending December 31, 20×2
Beginning Cash Balance
Cash Inflows:
Sales Collections:
Account Receivable (Sales last year not collected)
Sales made and collected in 20×2
Cash Available
Cash Outflows:
Purchases
Accounts Payable (Purchases last year)
Purchases made and paid for in 20×2
Other Manufacturing Costs
Direct Labor
Total Manufacturing Overhead
Selling and Administrative
Less: Depreciation
Total Cash Outflows
Budgeted Cash Balance before financing
Needed Minimum Balance
Round dollars to two
places, $##.##
$
34,710.000
$
$
$
67,500.00
102,210.00
{10.02}
{10.03}
{10.04}
2
2
2
$
352,170.00
{10.05}
2
{10.06}
{10.07}
2
2
{10.08}
2
{10.09}
2
{10.10}
2
$
–
$
102,210.00
$
102,210.00
Amount to be borrowed (if any)
Budgeted Cash Balance
Page 11
Yifeng Ge
6084
PART 4
Process Costing – Weighted Average
General Information
The I See The Light Company has a related company that produces the figurines. They use process costing
in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars.
The material is added at the beginning of the process. The labor and overhead costs are assumed
to be added uniformly throughout.
Month of January
Selected information for January is presented below. Note that the applied overhead rate was
50% of direct labor costs in the molding department.
Molding Department
Goods in-process as of January 1 were 2,800 figurines at a cost of $28,105.75. Of this amount, $4,312.00 was from
raw materials added, $15,862.50 for labor and $7,931.25 for overhead. These 2,800 figurines were assumed to be
30.00% complete as to labor and overhead.
During January, 23,500 units were started, $37,242.00 of materials and $50,322.50 of labor costs were incurred.
The 5,500 figurines that were in-process at the end of January were assumed to be 10.00% complete to
labor and overhead.
All figurines in January passed inspection.
Page 12
Yifeng Ge
6084
January
MOLDING
Physical Flow of Units
Work-in-Process – Beginning
Units Started this Period
Units to Account for
2,800 units
23,500 units
26,300 units
Total transferred out
Work-in-Process – Ending
Total Accounted for
20,800 units
5,500 units
{12.01}
{12.02}
0
0
Equivalent Units Material (Round to two places, ##,###.##)
26,300.00
{12.03}
2
Equivalent Units Conversion (Round to two places, ##,###.##)
21,350.00
{12.04}
2
Total cost of Material (Round to two places, ##.###.##)
$
41,554.00
{12.05}
2
Total cost of Conversion (Round to two places, ##.###.##)
Total cost to account for (Round to two places, ##.###.##)
$
$
102,480.00
144,034.00
{12.06}
{12.07}
2
2
Cost per equivalent unit of Material (Round to two places, ###.##)
$
1.58
{12.08}
2
Cost per equivalent unit of Conversion (Round to two places, ###.##)
$
4.80
{12.09}
2
Cost of the ending inventory, material and convesion (Round to two places, $###,###.## )
{12.10}
2
Cost of the units transferred, material and convesion (Round to two places, $###,###.## )
{12.11}
2
Page 13
Yifeng Ge
6084
PART 5
Job Order Costing
To keep records of the actual cost of a special order job, a Job Order Cost System has been developed.
Overhead is applied at the rate of 50% of the direct labor cost.
Job Order Costing Section
On January 1, 20×2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The
job called for 4,000 customized lamps. The following set of transactions occurred from
January 5 until the job was completed:
5-Jan
9-Jan
17-Jan
30-Jan
30-Jan
Purchased 4,100 Lamp Kits @ $16.70 per kit.
4,025 sets of Lamp Kits were requisitioned.
Payroll of 610 Direct Labor Hours @ $9.60 per hour.
Payroll of 660 Direct Labor Hours @ $9.85 per hour.
3,990 lamps were completed and shipped. All materials requisitioned were
used or scrapped, and are a cost of normal processing.
Month End Overhead Information
Actual Variable Manufacturing Overhead
Actual Fixed Manufacturing Overhead
$ 1,447.80
$ 40,623.45
Round to two
places, $##.##
Cost of Direct Material Incurred in Manufacturing Job 2407
$
67,217.50
{13.01}
2
$
12,357.00
{13.02}
2
$
6,178.50
{13.03}
2
{13.04}
2
Cost of Direct Labor Incurred in Manufacturing Job 2407
Cost of Manufacturing Overhead Applied to Job 2407
Cost of manufacturing one lamp
Page 14
Yifeng Ge
6084
PART 6
Standard Job Order Costing Variance Analysis
Special order lamps are manufactured in division S. Because of the precise nature of the process a
standard cost system has been developed. The following standards are used for the special orders:
Standards
Lamp Kits
Direct Labor
Variable Overhead
** Fixed Overhead
Total
$ 16.000000
2.400000
0.250000
10.000000
$ 28.650000
per lamp
per lamp (4 lamps/hr.)
per lamp (4 lamps/hr.)
per lamp
** Fixed overhead is based on expected production of 4,011 customized lamps each month.
To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries
are made to the Job Order System at actual cost (overhead is applied based on actual labor hours)
while entries are made to the accounting system at standard. Variance analysis is used to analyze the
differences.
Job Order Costing Section
On January 1, 20×2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The
job called for 4,000 customized lamps. The following set of transactions occurred from
January 5 until the job was completed:
5-Jan
9-Jan
17-Jan
30-Jan
30-Jan
Purchased 4,100 Lamp Kits @ $16.70 per kit.
4,025 sets of Lamp Kits were requisitioned.
Payroll of 610 Direct Labor Hours @ $9.60 per hour.
Payroll of 660 Direct Labor Hours @ $9.85 per hour.
3,989 lamps were completed and shipped. All materials requisitioned were
used or scrapped.
Month End Overhead Information
Actual Variable Overhead
Actual Fixed Overhead
$ 1,447.80
$ 40,623.45
Page 15
Yifeng Ge
6084
How many Lamps were completed?
Note: Show favorable variances as negative numbers
Round dollars to
two places, $##.##
What was the total material price variance for the Lamp Kits purchased?
{15.01}
2
What was the material usage variance for Lamp Kits?
{15.02}
2
What was the direct labor efficiency variance ?
{15.03}
2
What was the direct labor rate variance?
{15.04}
2
Page 16
Yifeng Ge
6084
Note: Show favorable variances as negative numbers
What was the variable overhead efficiency variance ?
{16.01}
2
What was the variable OH spending variance ?
{16.02}
2
What is the fixed OH volume (denominator) variance?
{16.03}
2
What is the fixed OH spending variance?
{16.04}
2
Page 17
Yifeng Ge
6084
PART 7
Capital Decision Making
Big Al gives his worker’s a one hour lunch and two fifteen minute breaks each day. He believes that a
cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker.
He has priced a machine at a national member only warehouse for $2,000. The machine should be
usable for 6 years, after which it would be inefficient, obsolete and would have to be disposed of at the
dump. Big Al believes that 11 cans a day will be purchased. The plant is open five days a week, 50
weeks per year. A case of soda (24 cans) costs $6.48 and Big Al believes that a price of $.55 per
can would win him good will.
What is the estimated annual sales in cans of soda?
2,750 cans
{17.01}
0
{17.02}
2
{17.03}
0
{17.04}
2
{17.05}
2
{17.06}
2
{17.07}
3
What is the contribution margin per can of soda? (rounded to two places, $#.##)
$
0.28
How many cans of soda must be sold each year to breakeven? (Round up to zero places, ###,### cans)
Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##)
$
770.00
What is the payback period in years? (rounded to two places, #.## years)
If the time value of money is 12% per year what is the net present value? Use the tables on page 18.
What is the internal rate of return. Pick the closest interest rate from the tables on page 18.
Page 18
Interest
Rate
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
11.5%
12.0%
12.5%
13.0%
13.5%
14.0%
14.5%
15.0%
15.5%
16.0%
16.5%
17.0%
17.5%
18.0%
18.5%
19.0%
19.5%
20.0%
20.5%
21.0%
21.5%
22.0%
22.5%
23.0%
23.5%
24.0%
24.5%
25.0%
25.5%
26.0%
26.5%
27.0%
27.5%
28.0%
28.5%
29.0%
29.5%
30.0%
30.5%
31.0%
31.5%
32.0%
32.5%
33.0%
33.5%
34.0%
34.5%
35.0%
35.5%
36.0%
36.5%
37.0%
37.5%
38.0%
38.5%
39.0%
39.5%
40.0%
40.5%
41.0%
41.5%
42.0%
42.5%
43.0%
43.5%
44.0%
44.5%
45.0%
45.5%
46.0%
46.5%
47.0%
47.5%
48.0%
48.5%
49.0%
49.5%
50.0%
Present Value of Annuity $1.00 in Arrears
6 Periods
Periods
Interest
3
2.884
2.856
2.829
2.802
2.775
2.749
2.723
2.698
2.673
2.648
2.624
2.601
2.577
2.554
2.531
2.509
2.487
2.465
2.444
2.423
2.402
2.381
2.361
2.341
2.322
2.302
2.283
2.264
2.246
2.228
2.210
2.192
2.174
2.157
2.140
2.123
2.106
2.090
2.074
2.058
2.042
2.027
2.011
1.996
1.981
1.967
1.952
1.938
1.923
1.909
1.896
1.882
1.868
1.855
1.842
1.829
1.816
1.803
1.791
1.779
1.766
1.754
1.742
1.730
1.719
1.707
1.696
1.685
1.673
1.662
1.652
1.641
1.630
1.620
1.609
1.599
1.589
1.579
1.569
1.559
1.549
1.540
1.530
1.521
1.512
1.502
1.493
1.484
1.475
1.467
1.458
1.449
1.441
1.432
1.424
1.416
1.407
4
3.808
3.762
3.717
3.673
3.630
3.588
3.546
3.505
3.465
3.426
3.387
3.349
3.312
3.276
3.240
3.204
3.170
3.136
3.102
3.070
3.037
3.006
2.974
2.944
2.914
2.884
2.855
2.826
2.798
2.770
2.743
2.716
2.690
2.664
2.639
2.613
2.589
2.564
2.540
2.517
2.494
2.471
2.448
2.426
2.404
2.383
2.362
2.341
2.320
2.300
2.280
2.260
2.241
2.222
2.203
2.185
2.166
2.148
2.130
2.113
2.096
2.079
2.062
2.045
2.029
2.013
1.997
1.981
1.966
1.951
1.935
1.921
1.906
1.892
1.877
1.863
1.849
1.836
1.822
1.809
1.795
1.782
1.769
1.757
1.744
1.732
1.720
1.707
1.695
1.684
1.672
1.660
1.649
1.638
1.627
1.616
1.605
5
4.713
4.646
4.580
4.515
4.452
4.390
4.329
4.270
4.212
4.156
4.100
4.046
3.993
3.941
3.890
3.840
3.791
3.743
3.696
3.650
3.605
3.561
3.517
3.475
3.433
3.392
3.352
3.313
3.274
3.236
3.199
3.163
3.127
3.092
3.058
3.024
2.991
2.958
2.926
2.895
2.864
2.833
2.803
2.774
2.745
2.717
2.689
2.662
2.635
2.609
2.583
2.557
2.532
2.507
2.483
2.459
2.436
2.412
2.390
2.367
2.345
2.324
2.302
2.281
2.260
2.240
2.220
2.200
2.181
2.162
2.143
2.124
2.106
2.088
2.070
2.052
2.035
2.018
2.001
1.985
1.969
1.953
1.937
1.921
1.906
1.890
1.876
1.861
1.846
1.832
1.818
1.804
1.790
1.776
1.763
1.750
1.737
6
5.601
5.508
5.417
5.329
5.242
5.158
5.076
4.996
4.917
4.841
4.767
4.694
4.623
4.554
4.486
4.420
4.355
4.292
4.231
4.170
4.111
4.054
3.998
3.943
3.889
3.836
3.784
3.734
3.685
3.636
3.589
3.543
3.498
3.453
3.410
3.367
3.326
3.285
3.245
3.205
3.167
3.129
3.092
3.056
3.020
2.986
2.951
2.918
2.885
2.853
2.821
2.790
2.759
2.729
2.700
2.671
2.643
2.615
2.588
2.561
2.534
2.508
2.483
2.458
2.433
2.409
2.385
2.362
2.339
2.316
2.294
2.272
2.251
2.229
2.209
2.188
2.168
2.148
2.129
2.109
2.091
2.072
2.054
2.036
2.018
2.000
1.983
1.966
1.949
1.933
1.917
1.901
1.885
1.870
1.854
1.839
1.824
Rate
50.5%
51.0%
51.5%
52.0%
52.5%
53.0%
53.5%
54.0%
54.5%
55.0%
55.5%
56.0%
56.5%
57.0%
57.5%
58.0%
58.5%
59.0%
59.5%
60.0%
60.5%
61.0%
61.5%
62.0%
62.5%
63.0%
63.5%
64.0%
64.5%
65.0%
65.5%
66.0%
66.5%
67.0%
67.5%
68.0%
68.5%
69.0%
69.5%
70.0%
70.5%
71.0%
71.5%
72.0%
72.5%
73.0%
73.5%
74.0%
74.5%
75.0%
75.5%
76.0%
76.5%
77.0%
77.5%
78.0%
78.5%
79.0%
79.5%
80.0%
80.5%
81.0%
81.5%
82.0%
82.5%
83.0%
83.5%
84.0%
84.5%
85.0%
85.5%
86.0%
86.5%
87.0%
87.5%
88.0%
88.5%
89.0%
89.5%
90.0%
90.5%
91.0%
91.5%
92.0%
92.5%
93.0%
93.5%
94.0%
94.5%
95.0%
95.5%
96.0%
96.5%
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
100.0%
Periods
3
1.399
1.391
1.383
1.375
1.368
1.360
1.352
1.345
1.337
1.330
1.323
1.315
1.308
1.301
1.294
1.287
1.280
1.273
1.266
1.260
1.253
1.247
1.240
1.234
1.227
1.221
1.214
1.208
1.202
1.196
1.190
1.184
1.178
1.172
1.166
1.160
1.155
1.149
1.143
1.138
1.132
1.127
1.121
1.116
1.111
1.105
1.100
1.095
1.090
1.085
1.079
1.074
1.069
1.064
1.060
1.055
1.050
1.045
1.040
1.036
1.031
1.026
1.022
1.017
1.013
1.008
1.004
0.999
0.995
0.991
0.986
0.982
0.978
0.974
0.969
0.965
0.961
0.957
0.953
0.949
0.945
0.941
0.937
0.933
0.930
0.926
0.922
0.918
0.914
0.911
0.907
0.903
0.900
0.896
0.893
0.889
0.885
0.882
0.878
0.875
4
1.594
1.584
1.573
1.563
1.553
1.542
1.532
1.523
1.513
1.503
1.494
1.484
1.475
1.466
1.457
1.447
1.439
1.430
1.421
1.412
1.404
1.395
1.387
1.379
1.371
1.362
1.354
1.347
1.339
1.331
1.323
1.316
1.308
1.301
1.293
1.286
1.279
1.272
1.265
1.258
1.251
1.244
1.237
1.230
1.224
1.217
1.210
1.204
1.198
1.191
1.185
1.179
1.172
1.166
1.160
1.154
1.148
1.143
1.137
1.131
1.125
1.120
1.114
1.108
1.103
1.097
1.092
1.087
1.081
1.076
1.071
1.066
1.061
1.055
1.050
1.045
1.040
1.036
1.031
1.026
1.021
1.016
1.012
1.007
1.002
0.998
0.993
0.989
0.984
0.980
0.975
0.971
0.967
0.962
0.958
0.954
0.950
0.946
0.942
0.938
If off the chart use 100%
5
1.724
1.711
1.698
1.686
1.674
1.662
1.650
1.638
1.626
1.615
1.604
1.592
1.581
1.570
1.560
1.549
1.539
1.528
1.518
1.508
1.498
1.488
1.478
1.468
1.459
1.449
1.440
1.431
1.422
1.413
1.404
1.395
1.386
1.378
1.369
1.361
1.352
1.344
1.336
1.328
1.320
1.312
1.304
1.297
1.289
1.281
1.274
1.267
1.259
1.252
1.245
1.238
1.231
1.224
1.217
1.210
1.204
1.197
1.190
1.184
1.177
1.171
1.165
1.158
1.152
1.146
1.140
1.134
1.128
1.122
1.116
1.111
1.105
1.099
1.094
1.088
1.082
1.077
1.072
1.066
1.061
1.056
1.050
1.045
1.040
1.035
1.030
1.025
1.020
1.015
1.010
1.006
1.001
0.996
0.992
0.987
0.982
0.978
0.973
0.969
6
1.810
1.795
1.781
1.767
1.753
1.740
1.726
1.713
1.700
1.687
1.674
1.662
1.649
1.637
1.625
1.613
1.602
1.590
1.579
1.567
1.556
1.545
1.534
1.524
1.513
1.503
1.492
1.482
1.472
1.462
1.452
1.443
1.433
1.424
1.414
1.405
1.396
1.387
1.378
1.369
1.361
1.352
1.344
1.335
1.327
1.319
1.311
1.303
1.295
1.287
1.279
1.272
1.264
1.256
1.249
1.242
1.235
1.227
1.220
1.213
1.206
1.199
1.193
1.186
1.179
1.173
1.166
1.160
1.153
1.147
1.141
1.135
1.129
1.123
1.117
1.111
1.105
1.099
1.093
1.087
1.082
1.076
1.071
1.065
1.060
1.054
1.049
1.044
1.039
1.033
1.028
1.023
1.018
1.013
1.008
1.003
0.999
0.994
0.989
0.984
Factor
0.989
0.994
0.999
1.003
1.008
1.013
1.018
1.023
1.028
1.033
1.039
1.044
1.049
1.054
1.060
1.065
1.071
1.076
1.082
1.087
1.093
1.099
1.105
1.111
1.117
1.123
1.129
1.135
1.141
1.147
1.153
1.160
1.166
1.173
1.179
1.186
1.193
1.199
1.206
1.213
1.220
1.227
1.235
1.242
1.249
1.256
1.264
1.272
1.279
1.287
1.295
1.303
1.311
1.319
1.327
1.335
1.344
1.352
1.361
1.369
1.378
1.387
1.396
1.405
1.414
1.424
1.433
1.443
1.452
1.462
1.472
1.482
1.492
1.503
1.513
1.524
1.534
1.545
1.556
1.567
1.579
1.590
1.602
1.613
1.625
1.637
1.649
1.662
1.674
1.687
1.700
1.713
1.726
1.740
1.753
1.767
1.781
1.795
1.810
1.824
1.839
1.854
1.870
Interest
Rate
100.0%
99.5%
99.0%
98.5%
98.0%
97.5%
97.0%
96.5%
96.0%
95.5%
95.0%
94.5%
94.0%
93.5%
93.0%
92.5%
92.0%
91.5%
91.0%
90.5%
90.0%
89.5%
89.0%
88.5%
88.0%
87.5%
87.0%
86.5%
86.0%
85.5%
85.0%
84.5%
84.0%
83.5%
83.0%
82.5%
82.0%
81.5%
81.0%
80.5%
80.0%
79.5%
79.0%
78.5%
78.0%
77.5%
77.0%
76.5%
76.0%
75.5%
75.0%
74.5%
74.0%
73.5%
73.0%
72.5%
72.0%
71.5%
71.0%
70.5%
70.0%
69.5%
69.0%
68.5%
68.0%
67.5%
67.0%
66.5%
66.0%
65.5%
65.0%
64.5%
64.0%
63.5%
63.0%
62.5%
62.0%
61.5%
61.0%
60.5%
60.0%
59.5%
59.0%
58.5%
58.0%
57.5%
57.0%
56.5%
56.0%
55.5%
55.0%
54.5%
54.0%
53.5%
53.0%
52.5%
52.0%
51.5%
51.0%
50.5%
50.0%
49.5%
49.0%
48.5%
Interest
Rate
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
11.5%
12.0%
12.5%
13.0%
13.5%
14.0%
14.5%
15.0%
15.5%
16.0%
16.5%
17.0%
17.5%
18.0%
18.5%
19.0%
19.5%
20.0%
20.5%
21.0%
21.5%
22.0%
22.5%
23.0%
23.5%
24.0%
24.5%
25.0%
25.5%
26.0%
26.5%
27.0%
27.5%
28.0%
28.5%
29.0%
29.5%
30.0%
30.5%
31.0%
31.5%
32.0%
32.5%
33.0%
33.5%
34.0%
34.5%
35.0%
35.5%
36.0%
36.5%
37.0%
37.5%
38.0%
38.5%
39.0%
39.5%
40.0%
40.5%
41.0%
41.5%
42.0%
42.5%
43.0%
43.5%
44.0%
44.5%
45.0%
45.5%
46.0%
46.5%
47.0%
47.5%
48.0%
48.5%
49.0%
49.5%
50.0%
50.5%
51.0%
51.5%
52.0%
52.5%
53.0%
53.5%
Factor
5.601
5.508
5.417
5.329
5.242
5.158
5.076
4.996
4.917
4.841
4.767
4.694
4.623
4.554
4.486
4.420
4.355
4.292
4.231
4.170
4.111
4.054
3.998
3.943
3.889
3.836
3.784
3.734
3.685
3.636
3.589
3.543
3.498
3.453
3.410
3.367
3.326
3.285
3.245
3.205
3.167
3.129
3.092
3.056
3.020
2.986
2.951
2.918
2.885
2.853
2.821
2.790
2.759
2.729
2.700
2.671
2.643
2.615
2.588
2.561
2.534
2.508
2.483
2.458
2.433
2.409
2.385
2.362
2.339
2.316
2.294
2.272
2.251
2.229
2.209
2.188
2.168
2.148
2.129
2.109
2.091
2.072
2.054
2.036
2.018
2.000
1.983
1.966
1.949
1.933
1.917
1.901
1.885
1.870
1.854
1.839
1.824
1.810
1.795
1.781
1.767
1.753
1.740
1.726
Page 18
Interest
Rate
Present Value of Annuity $1.00 in Arrears
6 Periods
Periods
Interest
3
4
5
6
Rate
Periods
3
4
5
6
Factor
1.885
1.901
1.917
1.933
1.949
1.966
1.983
2.000
2.018
2.036
2.054
2.072
2.091
2.109
2.129
2.148
2.168
2.188
2.209
2.229
2.251
2.272
2.294
2.316
2.339
2.362
2.385
2.409
2.433
2.458
2.483
2.508
2.534
2.561
2.588
2.615
2.643
2.671
2.700
2.729
2.759
2.790
2.821
2.853
2.885
2.918
2.951
2.986
3.020
3.056
3.092
3.129
3.167
3.205
3.245
3.285
3.326
3.367
3.410
3.453
3.498
3.543
3.589
3.636
3.685
3.734
3.784
3.836
3.889
3.943
3.998
4.054
4.111
4.170
4.231
4.292
4.355
4.420
4.486
4.554
4.623
4.694
4.767
4.841
4.917
4.996
5.076
5.158
5.242
5.329
5.417
5.508
5.601
5.697
5.795
5.896
5.683
Interest
Rate
48.0%
47.5%
47.0%
46.5%
46.0%
45.5%
45.0%
44.5%
44.0%
43.5%
43.0%
42.5%
42.0%
41.5%
41.0%
40.5%
40.0%
39.5%
39.0%
38.5%
38.0%
37.5%
37.0%
36.5%
36.0%
35.5%
35.0%
34.5%
34.0%
33.5%
33.0%
32.5%
32.0%
31.5%
31.0%
30.5%
30.0%
29.5%
29.0%
28.5%
28.0%
27.5%
27.0%
26.5%
26.0%
25.5%
25.0%
24.5%
24.0%
23.5%
23.0%
22.5%
22.0%
21.5%
21.0%
20.5%
20.0%
19.5%
19.0%
18.5%
18.0%
17.5%
17.0%
16.5%
16.0%
15.5%
15.0%
14.5%
14.0%
13.5%
13.0%
12.5%
12.0%
11.5%
11.0%
10.5%
10.0%
9.5%
9.0%
8.5%
8.0%
7.5%
7.0%
6.5%
6.0%
5.5%
5.0%
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Interest
Rate
54.0%
54.5%
55.0%
55.5%
56.0%
56.5%
57.0%
57.5%
58.0%
58.5%
59.0%
59.5%
60.0%
60.5%
61.0%
61.5%
62.0%
62.5%
63.0%
63.5%
64.0%
64.5%
65.0%
65.5%
66.0%
66.5%
67.0%
67.5%
68.0%
68.5%
69.0%
69.5%
70.0%
70.5%
71.0%
71.5%
72.0%
72.5%
73.0%
73.5%
74.0%
74.5%
75.0%
75.5%
76.0%
76.5%
77.0%
77.5%
78.0%
78.5%
79.0%
79.5%
80.0%
80.5%
81.0%
81.5%
82.0%
82.5%
83.0%
83.5%
84.0%
84.5%
85.0%
85.5%
86.0%
86.5%
87.0%
87.5%
88.0%
88.5%
89.0%
89.5%
90.0%
90.5%
91.0%
91.5%
92.0%
92.5%
93.0%
93.5%
94.0%
94.5%
95.0%
95.5%
96.0%
96.5%
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
100.0%
Factor
1.713
1.700
1.687
1.674
1.662
1.649
1.637
1.625
1.613
1.602
1.590
1.579
1.567
1.556
1.545
1.534
1.524
1.513
1.503
1.492
1.482
1.472
1.462
1.452
1.443
1.433
1.424
1.414
1.405
1.396
1.387
1.378
1.369
1.361
1.352
1.344
1.335
1.327
1.319
1.311
1.303
1.295
1.287
1.279
1.272
1.264
1.256
1.249
1.242
1.235
1.227
1.220
1.213
1.206
1.199
1.193
1.186
1.179
1.173
1.166
1.160
1.153
1.147
1.141
1.135
1.129
1.123
1.117
1.111
1.105
1.099
1.093
1.087
1.082
1.076
1.071
1.065
1.060
1.054
1.049
1.044
1.039
1.033
1.028
1.023
1.018
1.013
1.008
1.003
0.999
0.994
0.989
0.984
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