
PV of $1 



PV of Annuity of
$1 


6% 
8% 
10% 

6% 
8% 
10% 
1 
0.9434 
0.9259 
0.9091 
1 
0.9434 
0.9259 
0.9091 
2 
0.8900 
0.8573 
0.8264 
2 
1.8334 
1.7833 
1.7355 
3 
0.8396 
0.7938 
0.7513 
3 
2.6730 
2.5771 
2.4869 
4 
0.7921 
0.7350 
0.6830 
4 
3.4651 
3.3121 
3.1699 
5 
0.7473 
0.6806 
0.6209 
5 
4.2124 
3.9927 
3.7908 








1 
Choose one column in the PV of $1 table; using
your calculator, derive each 

PV factor using the formula. 












2 
Can you use the PV of $1 to derive the PV of
Annuity of $1 for the same interest 

rate? (YES) 













3 
What is the present value of $1,000 to be
received at the end of... 


a. 1
year, discounted at 6%? 





b. 2
years, discounted at 6%? 





c. 3
years, discounted at 6%? 





d. PROVE your answers in a, b, and c. 











4 
What is the present value of an annuity of
$1,000 to be received 


a. at the end of 1 year, discounted at 6%? 




b. at the end of years 1 and 2, discounted at
6%? 



c. at the end of years 1, 2, and 3, discounted
at 6%? 



d. PROVE your answers in items a, b, and c. 











5 
For question 3c above, write the problem as a
FUTURE VALUE problem. 








6 
For question 4c, write the problem as a FUTURE
VALUE problem. 








































































































































