KB5678

I SEE THE LIGHT

www.cybertext.com, The Book List,

Building Blocks of Accounting--A
Managerial Perspective, Enter password,
Upload when
Your Excel
File.
Khalid,
you are
ready to have your work graded you will upload this file
to the same screen that the project was downloaded from:
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
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There are alternative methods of solving
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guarantee that you are graded correctly
please follow the instructions as to rounding.
NOTE:
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e-mail markfriedman@miami.edu or call
305.284.6296.
Grade will be based upon answers entered
into the shaded boxes.

F711

130903

KB5678.xls, or KB5678.xlsx,

FAQ 01 What is the difference between rounding a number and rounding up a number?
Given:

Cost of a Taxi
Number of Passengers

Find

Cost per Passenger

Without rounding
Rounding to two decimals
Roundup to two decimals

$100.00
3

$33.333333
$33.330000
$33.340000

=C3/C4
=ROUND(C3/C4,2)
=ROUNDUP(C3/C4,2)

FAQ 02 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.
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.

FIRST
Khalid

LAST
Bakri

number
5678

File
KB5678

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 location
that Excel saves the file. Return to the bottom of the page that you downloaded the file from;
Cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter
password, Upload Your Excel File. If you upload an old version of the file the results will not update.
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:
If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296.
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, 20x1

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, 20x1
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

Khalid Bakri
5930

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 20x2

When calculating projected increases round to TWO ($0.00) decimal places.
1. Material Costs are expected to increase by 4.00% .
2. Labor Costs are expected to increase by 4.50%.
3. Variable Overhead is expected to increase by 2.00%.
4. Fixed Overhead is expected to increase to $280,000.
5. Fixed Administrative expenses are expected to increase to $62,000.
6. Variable selling expenses (measured on a per lamp basis) are expected to increase
by 6.50%.
7. Fixed selling expenses are expected to be $39,000 in 20x2.
8. Variable administrative expenses (measured a per lamp basis) are expected to
increase by 3.50%.
On the following schedule develop the following figures:
1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp.
2- 20x2 Projected Variable Unit Cost per lamp.
3- 20x2 Projected Fixed Costs.

Page 4

Khalid Bakri
5930
I See The Light, Inc
Schedule of Projected Costs

Variable Manufacturing Unit Cost

20x1 Cost

Projected
Percent
Increase

20x2 Cost Rounded to 2

Decimal Places
$16.64

{4.01}

Labor

$2.09

{4.02}

Variable Overhead

$2.06

{4.03}

2
2

$20.79

{4.04}

Lamp Kit

Projected Variable Manufacturing Cost Per Unit

Total Variable Cost Per Unit

20x1 Cost

Projected
Percent
Increase

20x2 Cost Rounded to 2

Decimal Places

Variable Selling

3.08

{4.05}

Variable Administrative

2.07

{4.06}

Projected Variable Manufacturing Unit Cost

20.79

{4.04}

2
2
2

Projected Total Variable Cost Per Unit

25.94

{4.07}

Schedule of Fixed Costs

20x1 Cost

20x2 Cost

Projected
Percent
Increase
$

290,000.00

{4.08}

Fixed Selling

39,000.00

{4.09}

Fixed Administrative

62,000.00

{4.10}

2
2

Projected Total Fixed Costs

391,000.00

{4.11}

Fixed Overhead
(normal capacity of _________ lamps @ __ )

Page 5

Khalid Bakri
5930

PART 2
Cost Volume Relationships Profit Planning
Big Al is about to begin work on the budget for 20x2 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.

2.

For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution
margin ratio for each lamp sold?

Contribution Margin per unit (Round to two places, $##.##)

$19.06

{5.01}

Contribution Margin Ratio (Round to four places,% is two of those places ##.##%)

42.36%

{5.02}

{5.03}

{5.04}

For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $197,500 . What
would sales in units have to be in 20x2 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 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $50,000.00 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)

21,138 units

Page 6

Khalid Bakri
5930

4.

For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $5.00 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.

16,252 units

{6.02}

16,252 units

{6.03}

27,810 units

{6.04}

If for 20x2 the selling price per lamp is increased to $50.00 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 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $5.00 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.

27,810 units

If for 20x2 the selling price per lamp is decreased to $40.00 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

Khalid Bakri
5930

PART 3
Budgets
Division N has decided to develop its budget based upon projected sales of 43,000 lamps at
$55.00 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 725 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

{7.01}

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Khalid Bakri
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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, $##.##)

42,400
725
43,125
500

units
units
units
units

{8.01}
{8.02}
{8.03}
{8.04}

0
0
0
0

$
$

16.64
709,280.00

{8.05}
{8.06}

2
0

2.09

{8.07}

88,616.00

{8.08}

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

$
$

87,344.00
290,000.00

{8.09}
{8.10}

2
2

Total Factory Overhead (Round to two places, $##.##)

377,344.00

{8.11}

3 Direct Labor Budget

Labor Cost Per Lamp
Production
Total Labor Cost (Round to two places, $##.##)

4 Factory Overhead Budget

Page 9

Khalid Bakri
5930

4 Factory Overhead Budget

Overhead Allocation rate based on:
1. Number of Units
Total Factory Overhead / Number of Units
(Round to two places, $##.##)
5 Cost of making one unit next year
Cost of one Lamp Kit
Labor Cost Per Lamp
Cost of Factory overhead per unit
Goods
Sold
Total cost of one unit
Budget
(Round to two places, $##.##)
Assume
FIFO
6 (First-In,
Selling and Admin. Budget
FirstOut)
Fixedand
Selling
overhea
Variable Selling (Round to two places, $##.##)
d is
Fixed Administrative
applied
Variable
based Administrative (Round to two places, $##.##)
Total
on
theSelling and Administrative (Round to two places, $##.##)
number
of units
to be
7
produce
d.
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

$8.90 {9.01}

$2.09 {9.02}

27.63 {9.03}

2
2
2
2

$132,440.00 {9.04}

89,010.00 {9.05}
322,450.00 {9.06}

2
2

Round dollars to two

places, $##.##
$
90,000.00 {9.07}

12,064.00 {9.08}

{9.09}
{9.10}
{9.11}
{9.12}
{9.13}
{9.14}

2
2
2
2
2
2

$
$

$
$
$
$
$
$

705,216.00
88,616.00
377,344.00
1,261,176.00
66,312.00
1,194,864.00

Page 10

Khalid Bakri
5930

7 Budgeted Income Statement

Sales
Cost of Goods Sold
Gross Profit
Selling Expenses & Admin. Expenses
Net Income

503,686.00 {10.01}

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 20x2.)
1. 20.00% 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. 84.00% 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 20x2, $150,000 .
I See The Light
Projected Cash Budget
For the Year Ending December 31, 20x2

Round dollars to two

places, $##.##
Beginning Cash Balance
Cash Inflows:
Sales Collections:
Account Receivable (Sales last year not collected)
Sales made and collected in 20x2
Cash Available
Cash Outflows:
Purchases
Accounts Payable (Purchases last year)
Purchases made and paid for in 20x2
Other Manufacturing Costs
Direct Labor
Total Manufacturing Overhead
Selling and Administrative
Less: Depreciation
Total Cash Outflows
Budgeted Cash Balance before financing
Needed Minimum Balance

$
$
$

67,500.00 {10.02}
1,576,380.00 {10.03}
1,678,590.00 {10.04}

2
2
2

595,795.20 {10.05}

$
$

2,346.00 {10.06}
1,435,859.20 {10.07}

2
2

242,730.80 {10.08}

{10.09}

242,730.80 {10.10}

Amount to be borrowed (if any)

Budgeted Cash Balance

Page 11

Khalid Bakri
5930

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 3,700 figurines at a cost of $68,394.00. Of this amount, $5,994.00 was from
raw materials added, $41,600.00 for labor and $20,800.00 for overhead. These 3,700 figurines were assumed to be
80.00% complete as to labor and overhead.
During January, 26,000 units were started, $40,338.00 of materials and $26,440.00 of labor costs were incurred.

The 6,000 figurines that were in-process at the end of January were assumed to be 25.00% complete to
labor and overhead.
All figurines in January passed inspection.

Page 12

Khalid Bakri
5930

January
MOLDING
Physical Flow of Units
Work-in-Process - Beginning
Units Started this Period
Units to Account for
Total transferred out
Work-in-Process - Ending
Total Accounted for

1,951 units {12.01}

1,919 units {12.02}

0
0

Equivalent Units Material (Round to two places, ##,###.##)

25,700.00 {12.03}

Equivalent Units Conversion (Round to two places, ##,###.##)

{12.04}

Total cost of Material (Round to two places, ##.###.##)

{12.05}

Total cost of Conversion (Round to two places, ##.###.##)

Total cost to account for (Round to two places, ##.###.##)

{12.06}
{12.07}

2
2

Cost per equivalent unit of Material (Round to two places, ###.##)

{12.08}

Cost per equivalent unit of Conversion (Round to two places, ###.##)

{12.09}

Cost of the ending inventory, material and convesion (Round to two places, $###,###.## )

{12.10}

Cost of the units transferred, material and convesion (Round to two places, $###,###.## )

{12.11}

Page 13

Khalid Bakri
5930

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, 20x2, 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 Purchased 4,200 Lamp Kits @ $16.40 per kit.
9-Jan 4,150 sets of Lamp Kits were requisitioned.
17-Jan Payroll of 600 Direct Labor Hours @ $9.40 per hour.
30-Jan Payroll of 650 Direct Labor Hours @ $9.65 per hour.
30-Jan 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

$ 1,325.00
$ 40,373.45

Round to two places,

$##.##
Cost of Direct Material Incurred in Manufacturing Job 2407

68,880.00

{13.01}

12,037.50

{13.02}

6,018.75

{13.03}

21.79

{13.04}

Cost of Direct Labor Incurred in Manufacturing Job 2407

Cost of Manufacturing Overhead Applied to Job 2407

Cost of manufacturing one lamp

Page 14

Khalid Bakri
5930

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 4,010 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, 20x2, 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 Purchased 4,200 Lamp Kits @ $16.40 per kit.

9-Jan 4,150 sets of Lamp Kits were requisitioned.
17-Jan Payroll of 600 Direct Labor Hours @ $9.40 per hour.
30-Jan Payroll of 650 Direct Labor Hours @ $9.65 per hour.
30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were
used or scrapped.

Month End Overhead Information

Actual Variable Overhead
Actual Fixed Overhead

$ 1,325.00
$ 40,373.45

Page 15

Khalid Bakri
5930

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?

1,680.00 {15.01}

What was the material usage variance for Lamp Kits?

3,360.00 {15.02}

What was the direct labor efficiency variance ?

2,424.00 {15.03}

What was the direct labor rate variance?

37.50 {15.04}

Page 16

Khalid Bakri
5930

Note: Show favorable variances as negative numbers

What was the variable overhead efficiency variance ?

252.50

###

What was the variable OH spending variance ?

75.00

###

What is the fixed OH volume (denominator) variance?

###

What is the fixed OH spending variance?

###

Page 17

Khalid Bakri
5930

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 $2,050. The machine should be
usable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the
dump. Big Al believes that 10 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 $6.24 and Big Al believes that a price of $.75 per
can would win him good will.
What is the estimated annual sales in cans of soda?
2,500 cans {17.01}

What is the contribution margin per can of soda? (rounded to two places, $#.##)

0.49

{17.02}

1,463 cans {17.03}

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, $#.##)

1,225.00

{17.04}

1.76 years {17.05}

{17.06}

32.00% {17.07}

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.

792.45

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

3 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

If off the chart use 100%

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

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
0.878
0.882
0.885
0.889
0.893
0.896
0.900
0.903
0.907
0.911
0.914
0.918
0.922
0.926
0.930
0.933
0.937
0.941
0.945
0.949
0.953
0.957
0.961
0.965
0.969
0.974
0.978
0.982
0.986
0.991
0.995
0.999
1.004
1.008
1.013
1.017
1.022
1.026
1.031
1.036
1.040
1.045
1.050
1.055
1.060
1.064
1.069
1.074
1.079
1.085
1.090
1.095
1.100
1.105
1.111
1.116
1.121
1.127
1.132
1.138
1.143
1.149
1.155
1.160
1.166
1.172
1.178
1.184
1.190
1.196
1.202
1.208
1.214
1.221
1.227
1.234
1.240
1.247
1.253
1.260
1.266
1.273
1.280
1.287
1.294
1.301
1.308
1.315
1.323
1.330
1.337
1.345
1.352
1.360
1.368
1.375
1.383
1.391
1.399
1.407
1.416

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%

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%

Factor
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
1.399
1.391
1.383
1.375
1.368

Page 18

Interest
Rate

Present Value of Annuity $1.00 in Arrears

3 Periods
Periods
Interest
3

Rate

Periods
3

Factor
1.424
1.432
1.441
1.449
1.458
1.467
1.475
1.484
1.493
1.502
1.512
1.521
1.530
1.540
1.549
1.559
1.569
1.579
1.589
1.599
1.609
1.620
1.630
1.641
1.652
1.662
1.673
1.685
1.696
1.707
1.719
1.730
1.742
1.754
1.766
1.779
1.791
1.803
1.816
1.829
1.842
1.855
1.868
1.882
1.896
1.909
1.923
1.938
1.952
1.967
1.981
1.996
2.011
2.027
2.042
2.058
2.074
2.090
2.106
2.123
2.140
2.157
2.174
2.192
2.210
2.228
2.246
2.264
2.283
2.302
2.322
2.341
2.361
2.381
2.402
2.423
2.444
2.465
2.487
2.509
2.531
2.554
2.577
2.601
2.624
2.648
2.673
2.698
2.723
2.749
2.775
2.802
2.829
2.856
2.884
2.912
2.941
2.970
2.706

Interest
Rate
49.0%
48.5%
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
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%

Factor
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