Josef Company borrowed money that must be repaid in 20 years. The company wants to make...
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Josef Company borrowed money that must be repaid in 20 years. The company wants to make sure the loan will be repaid at the end of year 20. So it invests $12,500 at the end of each year at 12% interest compounded annually. What was the amount of the original loan? (Use Table 13.1.) Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. Loan amount TABLE 13.1 Ordinary annuity table: Compound sum of an annuity of $1 1/2% 1% 2% 1.0000 4% 1.0000 6% 1.0000 7% 1.0000 8% 1.0000 9% 1.0000 1.0000 1.0000 1.0000 1.0000 2.0050 2.0100 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 3.0150 3.0301 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 4.0301 4.0604 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 5.0503 5.1010 5.2040 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.0755 6.1520 6.3081 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.1059 7.2135 7.4343 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 8.1414 8.2857 8.5829 8.8923 9.2142 9.5491 9.8975 10.2598 10.6366 11.0285 10.1591 10.5828 11.0265 11.4913 11.9780 12.4876 13.0210 15.1929 12.0061 12.5779 13.1808 13.8164 14.4866 9.1821 9.3685 9.7546 10.2280 10.4622 10.9497 11.4639 11.5668 12.1687 12.8078 12.6825 13.4120 13.4863 14.2068 14.9716 17.5603 15.7836 16.6455 18.9771 14.1920 15.0258 15.9171 16.8699 17.8884 20.1407 15.6178 16.6268 17.7129 18.8821 20.1406 21.4953 22.9534 13.8093 14.6803 15.9739 16.0969 17.2934 17.0863 18.2919 19.5986 21.0150 22.5505 24.2149 26.0192 18.5989 20.0236 21.5785 23.2759 25.1290 27.1521 29.3609 21.8245 23.6574 25.6725 27.8880 30.3243 33.0034 11.2792 12.3356 13.3973 14.4643 14.9474 15.5365 16.6142 17.2579 18.6393 20.1569 17.6973 18.4304 20.0120 21.7616 18.7858 19.6147 21.4122 23.4144 19.8797 20.8109 22.8405 25.1169 20.9791 22.0190 24.2973 26.8704 26.5591 28.2432 32.0302 36.4593 32.2801 34.7849 40.5679 47.5754 44.1589 23.6975 25.8403 28.2128 30.8402 33.7503 36.9737 25.6454 28.1323 30.9056 33.9990 37.4503 41.3014 27.6712 30.5389 33.7599 37.3789 41.4463 46.0185 29.7781 33.0659 36.7855 40.9954 45.7620 51.1602 41.6459 47.7270 54.8644 79.0580 63.2489 73.1060 84.7010 94.4606 113.2833 136.3077 164.4941 56.0849 66.4386 75.4012 95.0254 120.7993 154.7616 48.8864 60.4017 64.4632 84.5790 112.7968 152.6669 209.3470 290.3351 199.6346 259.0569 406.5277 573.7711 56.6452 Note: This is only a sampling of tables available. The Business Math Handbook shows tables from 1/2 % to 15%. Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 3% 5% ... 11% 10% 1.0000 1.0000 2.1000 2.1100 3.3100 3.3421 4.6410 4.7097 6.1051 6.2278 7.7156 7.9129 9.4872 9.7833 11.4359 11.8594 13.5795 14.1640 15.9374 16.7220 18.5312 19.5614 21.3843 22.7132 24.5227 26.2116 27.9750 30.0949 31.7725 34.4054 35.9497 39.1899 40.5447 44.5008 45.5992 50.3959 51.1591 56.9395 57.2750 64.2028 98.3471 114.4133 199.0209 581.8260 337.8831 442.5928 815.0853 1163.9090 1668.7710 12% 1.0000 2.1200 3.3744 4.7793 6.3528 8.1152 10.0890 12.2997 14.7757 17.5487 20.6546 24.1331 28.0291 32.3926 37.2797 42.7533 48.8837 55.7497 63.4397 72.0524 133.3338 241.3327 767.0913 2400.0180 Josef Company borrowed money that must be repaid in 20 years. The company wants to make sure the loan will be repaid at the end of year 20. So it invests $12,500 at the end of each year at 12% interest compounded annually. What was the amount of the original loan? (Use Table 13.1.) Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. Loan amount TABLE 13.1 Ordinary annuity table: Compound sum of an annuity of $1 1/2% 1% 2% 1.0000 4% 1.0000 6% 1.0000 7% 1.0000 8% 1.0000 9% 1.0000 1.0000 1.0000 1.0000 1.0000 2.0050 2.0100 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 3.0150 3.0301 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 4.0301 4.0604 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 5.0503 5.1010 5.2040 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.0755 6.1520 6.3081 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.1059 7.2135 7.4343 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 8.1414 8.2857 8.5829 8.8923 9.2142 9.5491 9.8975 10.2598 10.6366 11.0285 10.1591 10.5828 11.0265 11.4913 11.9780 12.4876 13.0210 15.1929 12.0061 12.5779 13.1808 13.8164 14.4866 9.1821 9.3685 9.7546 10.2280 10.4622 10.9497 11.4639 11.5668 12.1687 12.8078 12.6825 13.4120 13.4863 14.2068 14.9716 17.5603 15.7836 16.6455 18.9771 14.1920 15.0258 15.9171 16.8699 17.8884 20.1407 15.6178 16.6268 17.7129 18.8821 20.1406 21.4953 22.9534 13.8093 14.6803 15.9739 16.0969 17.2934 17.0863 18.2919 19.5986 21.0150 22.5505 24.2149 26.0192 18.5989 20.0236 21.5785 23.2759 25.1290 27.1521 29.3609 21.8245 23.6574 25.6725 27.8880 30.3243 33.0034 11.2792 12.3356 13.3973 14.4643 14.9474 15.5365 16.6142 17.2579 18.6393 20.1569 17.6973 18.4304 20.0120 21.7616 18.7858 19.6147 21.4122 23.4144 19.8797 20.8109 22.8405 25.1169 20.9791 22.0190 24.2973 26.8704 26.5591 28.2432 32.0302 36.4593 32.2801 34.7849 40.5679 47.5754 44.1589 23.6975 25.8403 28.2128 30.8402 33.7503 36.9737 25.6454 28.1323 30.9056 33.9990 37.4503 41.3014 27.6712 30.5389 33.7599 37.3789 41.4463 46.0185 29.7781 33.0659 36.7855 40.9954 45.7620 51.1602 41.6459 47.7270 54.8644 79.0580 63.2489 73.1060 84.7010 94.4606 113.2833 136.3077 164.4941 56.0849 66.4386 75.4012 95.0254 120.7993 154.7616 48.8864 60.4017 64.4632 84.5790 112.7968 152.6669 209.3470 290.3351 199.6346 259.0569 406.5277 573.7711 56.6452 Note: This is only a sampling of tables available. The Business Math Handbook shows tables from 1/2 % to 15%. Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 3% 5% ... 11% 10% 1.0000 1.0000 2.1000 2.1100 3.3100 3.3421 4.6410 4.7097 6.1051 6.2278 7.7156 7.9129 9.4872 9.7833 11.4359 11.8594 13.5795 14.1640 15.9374 16.7220 18.5312 19.5614 21.3843 22.7132 24.5227 26.2116 27.9750 30.0949 31.7725 34.4054 35.9497 39.1899 40.5447 44.5008 45.5992 50.3959 51.1591 56.9395 57.2750 64.2028 98.3471 114.4133 199.0209 581.8260 337.8831 442.5928 815.0853 1163.9090 1668.7710 12% 1.0000 2.1200 3.3744 4.7793 6.3528 8.1152 10.0890 12.2997 14.7757 17.5487 20.6546 24.1331 28.0291 32.3926 37.2797 42.7533 48.8837 55.7497 63.4397 72.0524 133.3338 241.3327 767.0913 2400.0180
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