CONFIDENTIAL BA/FEB 2023/FIN358/329

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE INVESTMENT MANAGEMENT

COURSE CODE FIN358/329
EXAMINATION FEBRUARY 2023
TIME 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of six (6) questions.

2. Answer only five (5) questions in the Answer Booklet. Start each answer on a new page.

3. Do not bring any material into the examination room unless permission is given by the invigilator.

4. Please check to make sure that this examination pack consists of:

i. the Question Paper

ii. a four - page Appendix
iii. an Answer Booklet - provided by the Faculty

5. Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 6 printed pages

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 2 BA/FEB 2023/FIN358/329

QUESTION 1

a) Bestie Corporation has issued a 15-year, 12 percent convertible bond worth

RM5,000,000. Convertible bonds can be converted into common stock at a 25
percent premium over the market price per share. Before the issuance of convertible
bonds, the total outstanding shares and corporation earnings before interest and
taxes (EBIT) are 1,500,000 units and RM900,000 respectively. Bestie Corporation
has an earnings per share (EPS) of RM8 and a price-earnings (PE) ratio of 2.5 times.
The corporation anticipates that the issuance of convertible bonds will increase EBIT
by 20 percent above their current earnings before interest and tax (EBIT). The tax
rate is 40 percent. Compute the following: -

i) New earnings before interest and tax (EBIT) after the issuance of a convertible
bond.
(2 marks)

ii) The conversion price.

(2 marks)

iii) The conversion ratio.

(2 marks)

iv) Effects of earning per share (EPS) after 50 percent conversion.

(5 marks)

v) Effects of earning per share (EPS) after full conversion.

(3 marks)

b) Discuss three (3) differences between stock dividends and stock rights.
(6 marks)

QUESTION 2

a) List any five (5) features of preferred shares.

(5 marks)

b) Rasa Sayang Berhad just paid a dividend of RM1.80 per share. The current stock
price of the company is RM18. If the dividends are expected to grow at a constant
rate of 8 percent and the required rate of return is 15 percent, compute the stock price
in four years from now.
(6 marks)

c) Identify any three (3) advantages of investing in bond.

(3 marks)

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CONFIDENTIAL 3 BA/FEB 2023/FIN358/329

d) The annual dividend of ABC's shares is expected to be RM1.00, RM1.40, RM1.60

and RM2.00 for the next four years. The expected share price at year four is
RM 10.00. If the required rate of return is 10 percent, compute the value of the share.
(6 marks)

QUESTION 3

a) CHOCO Berhad pays RM1.50 dividend for every three months to preferred
shareholders and the market price of preferred shares is recorded at RM110. If you
own 1000 preferred shares of CHOCO Berhad with the required rate of return of 15
percent,

i) Compute the theoretical value of the shares.

(3 marks)

ii) Interpret whether you should buy or sell preferred shares.

(2 marks)

b) Describe warrant as sweetener to attract investor.

(5 marks)

c) Global Venture's share price is selling at RM50, and you are expecting the price to
drop next month to RM45. You decide to buy 1 month put option for 5 lot of Global
Venture share with the cost of RM100 per lot. Compute profit or loss would you make
from the option.
(5 marks)

d) Bersih Berhad has issued RM1 million preferred shares with RM0.10 fixed dividend
every year at par value of RM100. In order to attract investors to invest in its preferred
shares, a warrant is attached which entitles the preferred shareholder to buy three
common shares at RM22 per share. Currently, the market price of Bersih's shares is
RM25 and the warrant is selling at RM11.00. Compute the following: -

i) The intrinsic value of the warrant.

(3 marks)

ii) The warrant premium.

(2 marks)

QUESTION 4

a) Kemboja Berhad has an 8 percent, 30-year bond issued 18 years ago. The interest
of the bond is paid semiannually. Currently, the bond sells at a premium of 25 percent.
The required rate of return is 14 percent. Find the rate of return earned by an investor
if the bond is held until maturity.
(3 marks)

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 4 BA/FEB 2023/FIN358/329

b) Bryant Enterprise just issued RM1.000 par 30-year bonds. The bonds sold for
RM1,107.20 and pay interest semiannually. Investors require a rate of 8 percent on
the bonds. Find the bonds' coupon rate.
(5 marks)

c) State any two (2) differences between stock splits and stock dividends.
(5 marks)

d) TenQ Berhad's equity account is as follows.

Common Stock (at RM2 par) RM 3,000,000

Premium RM 5,000,000
Retained Earnings RM 6,000,000
Total Equity RM14,000,000

i) Show the effects of an equity account if the company decides to declare a four-
for-one stock split.
(3 marks)

ii) If the current market price is RM5, compute the new market price after the stock
split.
(4 marks)

QUESTION 5

a) Describe any three (3) features of common shares.

(6 marks)

b) Madmax Berhad paid RM1.50 dividend per share last year. The company's policy is
to allow its dividend to grow at 5 percent for the first four years and then the rate of
growth changes to 3 percent from year five onwards until perpetuity. Compute the
value of share if the required rate of return is 8 percent?
(4 marks)

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 5 BA/FEB 2023/FIN358/329

c) In recent announcement, TimeSpace Berhad has declared a distribution of bonus

dividend to its shareholders. The distribution of 30 percent share dividend will be made
at the end of the financial year to its existing shareholders. The current share price for
TimeSpace Berhad is RM8. Below is the extract balance sheet of TimeSpace Berhad
as at 31 st December 2020.

RM
Common stock (RM5 par value) 250,000,000
Paid in capital 44,200,000
Retained earnings 101,000,000
Total shareholder's equity 395,200,000

Prepare an extract balance sheet after the event of share dividend for TimeSpace
Berhad.
(7 marks)

d) Carigali Berhad share is currently selling at RM50 per share. The expected dividend
for next year is RM3.20 and this company has a constant growth. If investors' required
rate of return is set at 15 percent, what will be the growth rate?
(3 marks)

QUESTION 6

a) The partial balance sheet of Dunkin Company as of December 31, 2022, is shown
below:

Common shares 1,000,000

Premium 400,000
Retained earnings 1,600,000
Total Net Worth 3,000,000

The corporation's common shares are now trading at RM 6 per share. It presently has
an RM800,000 net profit. The shares have an RM2.00 par value. The company
intends to pay a 20 percent stock dividend. Show the changes in common stock,
premium, retained earnings, and earnings per share following a stock dividend.
(6 marks)

b) Aurora currently owns 1000 units of preferred shares in Big House Dumbledore
Berhad. The current dividend received from each share is RM2.50 quarterly and it is
currently traded at RM150 per share. If Aurora required rate of return for her preferred
shares is 5 percent, compute whether Aurora should sell or buy more shares.
(4 marks)

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 6 BA/FEB 2023/FIN358/329

c) Explain the following types of unit trust management companies with an example of
each:

i) Open-End fund
(2.5 marks)
ii) Close-End fund
(2.5 marks)

d) The organization of a unit trust can be illustrated as a tripartite relationship. Describe

any two (2) parties involved in the unit trust.
(6 marks)

END OF QUESTION PAPER

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

Table C.1 Future Value of $1 at the end of t Periods = { 1 + r )
interest Rate
Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 14% 15% 16% 18% 20% 24% 28% 32% 36%
1 1.0100 1.0200 1.0300 1.0400 1.0500 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100 1.1200 1.1400 1.1500 1.1600 1.1800 1.2000^ 1.2400 1.2800 1.3200 1.3600
2 1.0201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449 1.1664 1.1881 1.2100 1.2321 1.2544 1.2996 1.322S 1.3456 1.3924 1.4400 1.5376 1.6384 1.7424 1.8496
3 1.0303 1.0612 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1,3676 1.4049 1.4815 1.5209 1.5609 1.6430 1.7280 1.9066 2.0972 2.3000 2.5155
A 1.0406 1,0824 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181 1.5735 1.6890 1.7490 1.8106 1.9388 2.0736 2.3642 2.6844 3.0360 3.4210

5 1.0510 1.1041 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5366 1.6105 1.6851 1.7623 1.9264 2.0114 2.1003 2.2878 2.4883 2.9316 3,4360 4.0075 4.6526

6 1.0615 1.1262 1.1941 1.2653 1.3401 1.4185 1.5007 1.6869 1.6771 1.7716 1.8704 1.9738 2.1950 2.3131 2.4364 2.6996 2.9860 3.6352 4.3980 5.2899 6,3275
7 1.0721 1.1487 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.9487 2.0762 2.2107 2.5023 2.6600 2.8262 3.1855 3.5832 4.5077 5.6295 6,9826 8.6054
8 1.0829 1.1717 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.3045 2.4760 2.8526 3.0590 3.2784 3.7589 4.2998 5.5895 7.2058 9.2170 11.703
9 1.0937 1.1951 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2,5580 2.7731 3.2519 3.518 3.803 4.435 5.160 6.931 9.223 12.166 15.917
10 1.1046 1.2190 1.3439 1.4B02 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 2.8394 3.1058 3.7072 4.046 4.411 5.234 6.192 8.594 11,806 16.060 21.647
11 1.1157 1.2434 1.3842 1.5395 1.7103 1.8983 2.1049 2.3316 2.5804 2.8531 3.1518 3.4785 4.2262 4.652 5.117 6.176 7.430 10.657 15.112 21.199 29.439
12 1.1268 1.2682 1.4258 1.6010 1.7959 2.0122 2.2522 2.5182 2.8127 3.1384 3.4985, 3.8960 4.8179 5.350 5.936 7.288 8.916 13.215 19.343 27.983 40.037
13 1.1381 1.2936 1,4685 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 3.4523 3.8833 4.3635 5.4924 6.153 6.886 8.599 10.699 16.386 24.769 36.937 54.45
14 1.1495 1.3195 1.5126 1,7317 1.9799 2.2609 2.5785 2.9372 3.3417 3.7975 4.3104 4.8871 6.2613 7.076 7.988 10.147 12.839 20.319 31.691 48.757 74.05
15 1.1610 1.3459 1.5580 1.80O9 2.0789 2.3966 2.7590 3.1722 3.8425 4.1772 4.7846 5.4736 7.1379 8.137 9.266 11.974 15.407 25.196 40.565 64.359 100.71
16 1.1726 1.3728 1.6047 1.8730 2.1829 2.5404 2.9522 3.4259 3.9703 4.5950 5.3109 6.1304 8.1372 9.358 10.748 14.129 18.488 31.243 51.923 84.954 136.97
17 1.1843 1.4002 1.6528 1.9479 2.2920 2.6928 3.1588 3.7000 4.3276 5.0545 5.8951 6.8660 9.2765 10.761 12.468 16.672 22.186 38.741 66.461 112.14 186.28
18 1.1961 1.4282 1.7024 2.0258 2.4066 2.8543 3.3799 3.9960 4.7171 5.5599 6.5436 7.6900 10.575 12.375 14.463 19.673 26.623 48.039 85.07 148.02 253.34
19 1.2081 1.4568 1.7535 2.1068 2.5270 3.0256 3.6165 4.3157 5.1417 6.1159 7.2633 8.6128 12.056 14.232 16.777 23.214 31.948 59.568 108.89 195.39 344.54
20 1.2202 1.4859 1.8061 2.1911 2.6533 3.2071 3,8697 4.6610 5.6044 6.7275 8.0623 9.6463 13.743 16.367 19.461 27.393 38.338 73.864 139.38 257.92 468.57
21 1.2324 1.5157 1.8603 2.2788 2.7860 3.3996 4.1406 5.0338 6.1088 7.4002 8.949 10.804 15.668 18.822 22.574 32.324 46.005 91.592 178.41 340,45 637.26
22 1.2447 1.5460 1.9161 2.3699 2,9253 3.6035 4.4304 5.4365 6.6586 8.1403 9.934 12.100 17.861 21.645 26.186 38.142 55.206 113.57 228.36 449.39 866.67
23 1.2572 1.5769 1.9736 2.4647 3.0715 3.8197 4.7405 5.8715 7.2579 8.9543 11.026 13.552 20.362 24.891 30.376 45.008 66.247 140.83 292.30 593.20 1178.7
24 1.2697 1.6084 2.0328 2.5633 3.2251 4.0489 5.0724 6.3412 7.9111 9.8497 12.239 15.179 23.212 28.625 35.236 63.109 79.497 174.63 374.14 783.02 1603.0
25 1.2824 1.6406 2.0938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231 10.835 13.585 17.000 26.462 32.919 40.874 62.669 95.396 216.54 478,90 1033.6 2180.1
30 1.3478 1.8114 2.4273 3.2434 4.3219 5.7435 7.6123 10.063 13.268 17.449 22.892 29.960 50.950 66.212 85.850 143.37 237.38 634.82 1645.5 4142.1 10143
40 1.4889 2.20BO 3.2620 4.8010 7,0400 10.286 14.974 21.725 31.409 45.26 65.00 93.05 188.88 267,86 378.72 750.38 1469.8 5455.9 19427 66521 219562
50 1.6446 2.6916 4.3839 7.107 11.467 18.420 29.457 46.902 74.358 117.39 184.56 289.00 700.2 1083.7 1670.7 3927.4 9100.4 46890 229350 1068308 4752755
60 1.8167 3.2810 5.8916 10.520 16.679 32.988 57.946 101.26 176.03 304.48 524.06 897.60 2595.9 4384.0 7370.2 20555 56348 402996 2707685 17156784 102880840
Table C.2 Present Value of $1 at the end of t Periods = 1 / ( 1 + r )
Interest Rate
Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 14% 15% 16% 18% 20% 24% 28% 32% 36%
1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8772 0.8696 0.8621 0.8475 0.8333 0.8065 0.7813 0.7576 0.7353
2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7695 0.7561 0.7432 0.7182 0.6944 0.6504 0.6104 0.5739 0.5407
3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6750 0.6575 0.6407 0.6086 0.5787 0.5245 0.4768 0.4348 0.3975
4 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 0.5921 0.5718 0.5523 0.515B 0.4823 0.4230 0.3725 0.3294 0.2923
5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5194 0.4972 0,4761 0.4371 0.4019 0.3411 0.2910 0.2495 0.2149
6 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4556 0.4323 0.4104 0.3704 0.3349 0.2751 0.2274 0.1890 0.15B0
7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6851 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.3996 0.3759 0.3538 0.3139 0.2791 0.2218 0.1776 0.1432 0.1162
3 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3506 0.3269 0.3050 0.2660 0.2326 0.1789 0.1388 0.1085 0.0854
9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3075 0.2843 0.2630 0.2255 0.1938 0.1443 0.1084 0.0822 0.0628
10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2697 0.2472 0.2267 0.1911 0.1816 0.1164 0.0847 0.0623 0.0462
11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2366 0.2149 0.1954 0.1619 0.1346 0.0938 0.0662 0.0472 0,0340
12 0.8874 0.7885 0.7014 0.6246 0,5568 Q.4970 0.4440 0.3971^ 0.3555 0.3186 0.2858 0.2567 0.2076 0.1869 0.1685 0.1372 0.1122 0.0757 0.0517 0.0357 0.0250
13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0,3677 0.3262 0.2897 0.2575 0.2292 0.1821 0.1625 0.1452 0.1163 0.0935 0.0610 0.0404 0.0271 0.0184
14 0.8700 0.7579 0.6611 0.5775 0.6051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1597 0.1413 0.1252 0.0985 0.0779 0.0492 0.0316 0.0205 0.0135
15 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0,2394 0.2090 0.1827 0.1401 0.1229 0.1079 0.0835 0,0649 0.0397 0.0247 0.0155 0.0099
18 0.8528 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1883 0.1831 0.1229 0.1069 0.0930 0.0708 0.0541 0.0320 0.0193 0.0118 0.0073
17 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1078 0.0929 0.0802 0.0600 0.0451 0.0258 0.0150 0.0089 0.0054
18 0.8360 0.7002 0.5874 0.4936 0.4165 0.3503 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.0946 0.0808 0.0691 0.0508 0.0376 0.0208 0.0118 0.0068 0.0039
19 0.8277 0.6884 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1636 0.1377 0.1161 0.0829 0.0703 0.0596 0.0431 0.0313 0.0168 0.0092 O.0Q51 0.0029
20 0.8195 0.6730 0.6637 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1240 0.1037 0.0728 0.0611 0.0514 0,0365 0.0261 0.0135 0.0072 0.0039 0.0021
21 0.8114 0.6598 0.5375 0.4388 0.3589 0.2942 0.2415 0.1987 0.1637 0.1361 0.1117 0.0926 0.0638 0.0631 0,0443 0.0309 0.0217 0,0109 0.0056 0.0029 ' 0.0016
22 0.8034 0.6468 0.5219 0.4220 0.3418 0.2775 0.2257 0,1839 0.1502 0.1228 0.1007 0.0826 0.0560 0.0462 0.0382 0.0262 0.0181 0.0088 0.0044 0.0022 0.0012
23 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.1117 0,0907 0.0738 0.0491 0,0402 0.0329 0.0222 Q.0151 0.0071 0.0034 0.0017 0.0008
24 0.7876 0,6217 0.4919 0.3901 0.3101 0.2470 0.1971 0.1577 0.1264 0,1015 0.0817 0.0659 0.0431 0.0349 0.0284 0.0188 0.0126 0.0057 0.0O27 0.0013 0.0006
25 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0378 0.0304 0.0245 0.0160 0.0105 0.0046 0.0021 0.0010 0.0005
30 0.7419 0.5521 0.4120 0.3083 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0196 0.0151 0,0116 0.0070 0.0042 0.0016 0.0006 0.0002 0.0001
40 0.6717 0.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0053 0.0037 0.0026 0.0013 0.0007 0.0002 0.0001 0.0000 0.0000
50 0.6080 0.3715 0.2281 0.1407 0.0872 0.0543 0.0339 0.0213 0.0134 0.0085 0.0054 0.0035 0.0014 0.0009 0.0006 0.0003 0.0001 0.0000 0.0000 0.0000 0.0000
60 0.5504 0.3048 0.1697 0.0951 0.0535 0.0303 0.0173 0.0099 0.0057 0.0033 0.0019 0.0011 0.0004 0.0002 0.0001 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
 t
Table C.3 Present Value of an Annuity of $1 per period f o r t Periods = [ 1 - 1 / ( 1 + r ) J / r
Interest Rate
Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 14% 15% 16% 18% 20% 24% 28% 32% 36%
1 0.9901 0.9804 0.9709 0.9615 0.9S24 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8772 0.8696 0.8621 0.8475 0.8333 0.8065 0.7813 0.7576 0.7353
2 1.9704 1.9416 1.9135 1.8861 1.8594 1.8334 1.8080 1.7833 1,7591 1.7355 1.7125 1.6901 1.6467 1.6257 1.6052 1.5656 1.5278 1.4568 1.3916 1.3315 1.2760
3 2.9410 2.8839 2.8286 2.7751 2.7232 2.6730 2,6243 2.5771 2.5313 2.4889 2.4437 2.4018 2.3216 2.2832 2.2459 2.1743 2.1065 1.9813 1.8684 1.7663 1.6735
4 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.1024 3.0373 2.9137 2.8550 2.7982 2.6901 2.5887 2.4043 2.2410 2.0957 1.9658
5 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002 3,9927 3.8897 3.7908 3.6959 3.6048 3.4331 3.3522 3.2743 3.1272 2.9906 2.7454 2.5320 2.3452 2.1807
6 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3563 4.2305 4.1114 3.8887 3.7845 3.6847 3.4976 3.3255 3.0205 2.7594 2.5342 2.3388
7 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.7122 4.5638 4.2883 4.1604 4.0386 3.8115 3.6046 3.2423 2.9370 2.6775 2.4550
8 7.6517 7.3255 7.0197 6.7327 6.4632 6,2098 5.9713 5.7466 5,5348 5.3349 5.1461 4.9676 4.6389 4.4873 4.3436 4.0776 3.8372 3.4212 3.0758 2.7860 2.5404
g 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.5370 5.3282 4.9464 4.7716 4.6065 4,3030 4.0310 3.56S5 3.1842 2.8681 2,6033
10 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.8892 5.6502 5.2161 5.0188 4.8332 4.4941 4.1925 3.6819 3.2689 2.9304 2.6495
11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 8,805 6.4951 6.2065 5.9377 5.4527 5.2337 5.0286 4.6560 4.3271 3.7757 3.3351 2.9776 2.6834
12 1 1 2 5 5 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.8137 6.4924 6.1944 5.6603 6.4206 5.1971 4.7932 4.4392 3.8514 3.3668 3.0133 2.7084
13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7,904 7.487 7.1034 6.7499 6.4235 5.8424 5.5831 5.3423 4.9095 4.5327 3.9124 3.4272 3.0404 2.7268
14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7,786 7.3667 6.9819 6.6282 6.0021 5.7245 5.4675 5.0081 4.6106 3.9616 3.4587 3.0609 2.7403
15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.6061 7.1909 6.8109 6.1422 5.8474 5.5755 5.0916 4.6755 4.0013 3.4834 3.0764 2.7502
16 14.718 13.678 12.661 11.652 10.838 10.106 9.447 8.851 8.313 7.8237 7.3792 6.9740 6.2651 5.9542 5.6685 5.1624 4.7296 4.0333 3.5026 3.0882 2.7575
17 15.5B2 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.644 8.0216 7.5488 7.1196 6.3729 6.0472 5.7487 6.2223 4.7746 4.0591 3.5177 3.0971 2.7629
18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2014 7.7016 7.2497 6.4674 6.1280 5.8178 5.2732 4.8122 4,0799 3.5294 3.1039 2.7668
19 17.226 15.678 14.324 13.134 12.085 11.158 10.1336 9.604 8.950 8.3649 7.8393 7.3658 6.5504 6.1982 5.8775 5.3162 4.8435 4.0967 3.5386 3.1090 2.7697
20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.5136 7.9633 7.4694 6.6231 6.2593 5.9288 5.3527 4.8696 4.1103 3.5458 3.1129 2.7718
21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.6487 8.0751 7.5620 6.6870 6.3125 5.9731 5.3837 4.8913 4,1212 3.5514 3.1158 2.7734
22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.7715 8.1757 7.6446 6.7429 6.3587 6.0113 5,4099 4.9094 4.1300 3.5558 3.1180 2.7746
23 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.8832 8.2664 7.7184 6.7921 6.3988 6.0442 5.4321 4.9245 4.1371 3.5592 3.1197 2.7754
24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 B.9847 8.3481 7.7843 6.8351 6.4338 6.0726 5.4508 4.9371 4.1428 3.5619 3,1210 2.7760
25 22.023 19.523 17.413 15.822 14.094 12.783 11.654 10.675 9.823 9.0770 8.4217 TJS43± 6.8729 6.4841 6.0971 5.4669 4.9476 4.1474 3.5640 3.1220 2.7766
30 25.808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.4269 8.6938 8.0552 7.0027 6.5660 6.1772 5.5168 4.9789 4.1601 3.5693 3.1242 2.7775
40 32.835 27.365 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.7791 8.9511 8.2438 7.1050 6.6418 6.2335 5.5482 4.9966 4.1659 3.5712 3.1250 2.7778
50 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10,962 9.9148 9.0417 8.3045 7.1327 6.6605 6.2463 5.S541 4.9996 4.1666 3.5714 3.1250 2.7778
60 44.955 34.761 27.676 22.623 18.929 16.161 14.039 12.377 11.048 9.9672 9.0736 8.3240 7.1401 6.6651 6.2492 5.5553 4.9999 4.1667 3.5714 3.1250 2.7778
Table C.4 Future Value of an Annuity of $1 per period for t Periods = [ ( 1 + r ) - 1 ] / r
Interest Rate
Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 14% 15% 16% 18% 20% 24% 28% 32% 36%

1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
2 2.0100 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 2.1000 2.1100 2.1200 2.1400 2.1500 2.1600 2.1800 2.2000 2.2400 2,2800 2.3200 2.3600

3 3.0301 3,0604 3,0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.3421 3.3744 3.4396 3.4725 3.5056 3.5724 3.6400 3.7776 3.9184 4.0624 4.2096
4 4.0604 4.1216 4,1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.7097 4.7793 4.9211 4.9934 5.0665 5.2154 5.3680 5.6842 6.0156 6.3624 6.7251

5 5.1010 5.2040 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.2278 6.3528 6.6101 6.7424 6.8771 7.1542 7.4416 8.048 8.7003 9.398 10.146

6 6.1520 6.3081 6,4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 7.9129 8.1152 8.5355 8.7537 8.9775 9.4420 9.9299 10.980 12.13fe 13.406 14.799
7 7.2135 7.4343 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 9.783 10.089 10.730 11.067 11.414 12.142 12.916 14.615 16.534 18.696 21.126
8 8.2857 8.5830 8.892 9.214 9.549 9.897 10.260 10.637 11.028 11.436 11.859 12.300 13.233 13.727 14.240 15.327 16.499 19.123 22.163 25.678 29.732
9 9.3685 9.7546 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.579 14.164 14.776 16.085 16.786 17.519 19.066 20.799 24.712 29.369 34.696 41.435
10 10.452 10.950 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 16.722 17.549 19.337 20.304 21.321 23.521 25.959 31.843 38.593 47.062 57.352
11 11.587 12.189 12.608 13.486 14.207 14.972 15.764 16.645 17.560 18.531 19.561 20.655 23.045 24.349 25.733 28.755 32.150 40.238 50.398 63.122 78.998
12 12,683 13.412 14.192 15.026 15.917 16.870 17.888 18.S77 20.141 21.384 22.713 24.133 27.271 29.002 30.850 34.931 39.581 50.895 65.510 84.320 108.44
13 13.809 14.680 15.618 16.627 17.713 18.882 20,141 21.495 22.953 24.523 26.212 28.029 32.089 34.352 36.786 42.219 48.497 64.110 84.85 112.30 148.47
14 14.947 15.974 17.086 18.292 19.5B9 21.015 22.550 24.215 26.019 27.975 30.095 32.393 37.S81 40.505 43.672 50.818 59,196 80.496 109.61 149.24 202.93
15 16.097 17.293 18.599 20.024 21.579 23.276 25.129 27.152 29.361 31.772 34.405 37.280 43.842 47.580 51.660 60.965 72,035 100.82 141.30 198.00 276.98
16 17.258 18.639 20.157 21.825 23.657 25.873 27.888 30.324 33.003 35.950 39.190 42.753 50.980 55.717 60.925 72.939 87,442 126.01 181.87 262.36 377.69
17 18.430 20.012 21.762 23.698 25.840 28.213 30.840 33.750 36.974 40.546 44.501 48.884 59.118 65.075 71.673 87.07 105.93 157.25 233.79 347.31 514.66
16 19.615 21.412 23.414 25.645 28.132 30.906 33.999 37.450 41.301 45.599 50.396 55.750 68,394 75.836 84.141 103.74 128.12 195.99 300.25 459.45 700.94
19 20.811 22.841 25.117 27,671 30.539 33.760 37.379 41.446 46.018 51.159 56.939 63.440 78.969 88.212 98.603 123.41 154.74 244.03 385.32 607.47 954.28
20 22.019 24.297 26.870 29.778 33.066 36.786 40.995 45.762 51.160 57.275 64.203 72.052 91.025 102.44 115.38 146.63 186.69 303.60 494.21 802.86 1298.8
21 23.239 25.783 28.676 31.969 35.719 39.993 44.865 50.423 56.765 64.002 72.265 81.699 104.77 118.81 134.84 174.02 225.03 377.46 633.59 1060.8 1767.4
22 24.472 27.299 30.537 34.248 38.505 43.392 49.006 55.457 62.873 71.403 81.214 92.503 120.44 137.63 157.41 206.34 271.03 469.06 812.00 1401.2 2404.7
23 25.716 28.845 32.453 36.618 41.430 46.996 53.436 60.893 69.532 79.543 91.148 104.60 138.30 159.28 183.60 244.49 326.24 582.63 1040.4 1850.6 3271.3
24 26.973 30.422 34.426 39.083 44.502 50.816 58.177 66.765 76.790 88.497 102.17 118.18 158.66 184.17 213.98 289.49 392.48 723.46 1332.7 2443.8 4450.0
25 28.243 32.030 36.459 41.646 47.727 54.865 63.249 73.106 84.701 98.347 114.41 133.33 181.87 212.79 249.21 342.60 471.98 898.09 1706.8 3226.8 6053.0
30 34.785 40.568 47.575 56.085 66.44 79.06 94.46 113.28 136,31 164.49 199.02 241.33 356.79 434.75 530.31 790.95 1181,9 2640.9 5873.2 12941 28172
40 48.866 60.402 75.401 95.026 120.80 154.76 199.64 259.06 337.88 442.59 581.83 767.09 1342.0 177S.1 2360.8 4163.2 7343.9 22729 69377 207874 609890
50 64.463 84.579 112.80 152.67 209.35 290.34 406.53 573.77 815,08 1163.9 1668.8 2400.0 4994.5 7217.7 10436 21813 45497 195373 819103 3338460 13202094
60 81.670 114.05 163.05 237.99 353.58 533.13 813.52 1253.2 1944.8 3035 4755 7472 18535 29220 .46058 114190 281733 1679147 9670301 53614945 285780109