Find the numerical value of the following factors by (a) linear interpolation, (b) using the appropri­ate formula, and (c) a spreadsheet function.

1. (F?A,19%,20)
2. (P?A,26%,15)


(a) 1. Interpolate between i = 18% and i = 20% at n = 20:
1/2 = x/40.06
x = 20.03
(F/A,19%,20) = 146.6280 + 20.03
=166.658

2. Interpolate between i = 25% and i = 30% at n = 15:
1/5 = x/0.5911
x = 0.11822
(P/A,26%,15) = 3.8593 – 0.11822
= 3.7411

(b) 1. (F/A,19%,20) = [(1+ 0.19)20 – 1]/0.19
= 165.418
2. (P/A,26%,15) = [(1 + 0.26)15 –1]/[0.26(1 + 0.26)15]
= 3.7261

(c) 1. = -FV(19%,20,1) displays 165.41802
2. = -PV(26%,15,1) displays 3.72607

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