1) How long will it take for $3,000 to grow to $10,000 at these investment yields? a) 4% years? b) 8% years? c) 16% years? (may need to interpolate in the interest tables slightly) 2) Landscaping company is considering buying a truck for $60,000 cash. The dealer has offered a lease option, in which the company can make 8 annual payments of $10,100 at yea end, at a cost of 8%, to pay off the truck. a) Which option is better? b) Purchase price of truck? c) PV of cost of 7 year lease? d) Which option is better? (Lease or Buy) Future value interest factor of an ordinary annuity of $1 per period at i% for n periods, FVIFA(in). 10 21 10 1.000 20 3215 1300 2.10 2110 20 To 21 200 3000 41 200 3.345 120 21 143 3.31 2010 30 40 11 1400 414 3 47 32 4573 5 4 500 5 18 TIM 7718 8198 1 721 TEN & 143 M 18 11 14 12 11 100 12 15.18 13 11 1P 18 11 13 11 MART 13 20 1 19 17 10 1 13.00 16.00 18 18 13818 15 17 1 11 TM 27700 21.04 256 18 N11 27 017 ST IS 1710 45.14 18 20 14 H ET 18 2006 237 15 17 18 M 21 3210 27 OM MI 3 M 45 72.00 70 20.157 NO S1 12 21 2213 MM 43 M 40 58 TIF 88015 TS M2 2414 15 40 45 31 M141 M 41 41.08 16 2012 SO 1400 116 IN 27 61 41 45 2018 OP 1M M 14 13 1 47.578 0 1 11 WN SF 41 1 172 MI 4 ANS 15 00 120 200 M MIN 40 103 1483 TIT 45. EN 20 53313 18 WT 1 4741 116 1 ME 41 14 w 11 2:41M Present value interest factor of $1 per period at i% for n periods, PVIF(i,n). 0.854 0.333 0287 Period 1 2 3 4 6 6 7 B 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 2% 0980 0.961 0.942 0.924 0.900 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.750 0.743 0.728 0.714 0.700 0.686 0.124 1% 0.990 0.980 0.971 0961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.870 0.870 0 361 0.853 0844 0.836 0.820 0820 0 780 0742 0.700 0672 AM 0.971 0.943 0.915 0.8.88 0.863 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0.587 0.570 0.554 0.478 0412 0.355 0.307 0228 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0534 0.513 0.494 0475 0456 0.375 0.308 0.253 0.200 0.141 5% 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 0.585 0.567 0.530 0.505 0.481 0458 0436 0416 0.390 0377 0.296 0.231 0.181 0.142 O ORT 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0558 0.527 0.497 0460 0442 0417 0.394 0.371 0.350 0.331 0 312 0.233 0.174 0.130 0.097 0054 7% 0.935 0.873 0810 0.763 0713 0.666 0.623 0.582 0.544 0.500 0475 0.444 0415 0.30 0362 0.339 0317 0 290 0277 0258 0.184 0.131 0.004 0067 0034 BX 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0315 0.292 0.270 0.250 0.232 0215 0.140 0.099 0.068 0.046 0021 10% 11% 12% 13% 15% 16% 17% 0.917 0.909 0.901 0.893 O BAS 0.877 0.870 0.862 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.708 0.683 0.650 0.636 0613 0.592 0.572 0.552 0534 0.650 0621 0.593 0.567 0.543 0519 0.497 0.476 0456 0.596 0.564 0535 0.507 0.480 0456 0432 0410 0.390 0.547 0.513 0.482 0.452 0425 0400 0.378 0.354 0.333 0.502 0467 0434 0.404 0.376 0.351 0.327 0.305 0.285 0.460 0.424 0.391 0.361 0.308 0284 0.263 0.243 0.422 0386 0.352 0.322 0.295 0.270 0 247 0.227 0208 0388 0350 0.317 0.261 0237 0.215 0.195 0.178 0356 0319 0286 0.257 0.231 0.208 0.187 0.168 0.152 0.326 0290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.299 0.263 0232 0205 0.181 0.160 0.141 0.125 0.111 0.276 0239 0.209 0.183 0.100 0.140 0.123 0.100 0.096 0.252 0218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.231 0.19 0.170 0.146 0.125 0.108 0.093 0.080 0.009 0.212 0.180 0.153 0.130 0.111 0.005 0.081 0.000 0.050 0.194 0.164 0.138 0.110 0.098 0.083 0.070 0.060 0.051 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0043 0.116 0.092 0.074 0.050 0.047 0.038 0030 0.024 0.020 0.075 0.057 0.044 0.033 0.026 0.020 0.015 0.012 0.000 0.049 0.036 0.026 0.019 0.014 0.010 0.008 0.006 0004 0.032 0.022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.013 0009 0005 0.003 0.002 0.001 0001 0.001 0.000 18% 19% 20% 0.847 0 840 0.833 0.718 0.706 0.694 0.600 0.593 0.579 0.516 0.499 0432 0437 0.419 0.402 0.370 0.352 0.336 0.314 0.296 0279 0.266 0.249 0233 0.225 0209 0.194 0.191 0.170 0.162 0.162 0.148 0.135 0.137 0.112 0.116 0.104 0.093 0.000 00AA 0.078 0.084 0.074 O DOS 0.071 0.002 0.060 0,0520045 0.051 0044 00:30 0.043 0037 0.031 0.037 0.031 0020 0.010 0.013 0010 0.007 0.005 0004 0003 O DO 0.001 0001 0.000 00000000 0.873 0.610 0.552 0.500 0453 A22 15 10% 13N 1.10 1272 1046 1082 5.170 19 1.100 1.100 1.24 1.300 22 12 140 14 TAR 1802 1874 2005 2014 1815 2.100 2416 1.323 1521 1749 2011 2313 2000 300 351 40 1630 1342 2002 2353 26 300 3 2285 2.700 1.925 2.15 2502 253 3:37 3 5160 2.105 Future value interest factor of $1 per period at i% for n periods, FVIF(Un). Period 15 45 1 1010 1070 1030 8% 100 11 1090 1050 1.060 1 DPD 1040 1041 1,500 1.110 1.103 1145 3 1001 1.166 1232 1.125 1210 1.158 1.331 1.041 1.002 1.126 1368 1216 1262 1311 1350 1412 S 1051 1.104 1464 1.159 1217 1518 1574 1278 1330 1403 1440 1052 1.126 1611 1.14 1265 1.340 16 1.162 1419 1500 1MY 71072 1.149 1.230 1677 1316 1772 147 1870 1994 1 504 16 1714 1.28 8 1.083 1.172 1940 1207 1360 1477 2016 2.211 1.504 1.718 1.5 13 91004 1105 1.50 2144 1551 2.305 2.41 1B 190 23 2112 10 1.105 1219 1144 2 2773 1699 17: 1. 2.1 21 2.54 1.116 1243 1384 1.539 3106 1.710 1.800 2332 2100 2653 31153 12 1.127 3479 1420 1601 17 2,012 13 1.138 2252 2.518 2013 3.81 1469 1.865 3.490 1888 2.133 2.720 3.000 3.452 1.310 3869 14 1.149 1.513 190 2.261 2.579 2937 3.342 4310 15 1.161 1.346 1.558 1.801 2079 2.397 2.750 3542 4.177 5414 1373 16 1S 2.13 2.540 2952 3.426 3.970 455 1.184 6.130 17 1400 1.945 2282 2.603 3150 3700 4320 5.054 5.895 6.66 18 1.100 1.702 202 2407 2854 3380 3.96 5.560 6544 7.610 19 1200 1457 1.754 2.107 2.527 3.626 3617 4316 5142 20 6.116 7203 8813 1220 1.450 1.800 211 2683 3.307 3 BPO 461 5604 8.02 140 25 1282 2004 2.664 4292 8.623 10835 13 5 17.000 118 1811 3.243 5.743 7612 10 063 13.268 17449 22892 29.900 35 1417 2000 2814 3.946 5516 7.686 10.677 14.785 20414 26 102 52.00 1.400 2200 3:22 40 7040 10.216 14074 21725 31400 45250 65.001 93051 50 1045 2682 4354 7107 29 457 48 902 743 117-31 184 289002 3 4226 4818 5.402 5234 6.176 720 7430 3016 3.130 4335 8.034 9.500 2410 5.550 6.169 TON 4 2.565 3001 3.511 4.106 4 BOT 5.824 650 TB DOT 1959 12339 14 426 16879 19.748 23.106 303 4411 5.117 5.00 B. 700 9.25 1745 12.466 14.463 4.82 6.201 123 S.Sos 8254 13.30 7661 2.350 10.147 11:34 14120 16 672 10673 23214 10 12.375 16.43 22.10 26 314 7980 9094 10.197 11523 21231 30.118 72.000 3:30 9.278 10 SPS 12.09 13 43 26.462 50.0 0.100 AM 700 233 14233 16 12919 00.212 133 175 267 264 1063657 62.800 143 371 10 441 40 874 45 850 180314 378 721 1,670,704 19 244 22.01 27 212 32.479 77388 154.675 44001 1051 888 5.9 914 15 13272 243 53 53 2.586 215 70 STB 1409 712 2.1004 450736 Present value interest factor of an ordinary) annuity of $1 per period at i% for n periods, PVIFA(i,n). 0.866 17% 20% B% 0.926 1.783 2577 1.585 2210 2.743 3.199 18% 0.847 1.566 2.174 2.600 3.127 3.4 3.812 4.078 19% 0.840 1.547 2.140 2.630 3.056 3.410 3.706 3.954 4.163 1. 2.100 2500 2.991 3.325 3.606 3.837 4.031 4.192 7 024 3.312 3.983 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 4% 0.862 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 8.760 9.385 9.986 10.583 11.118 11.052 12.166 12.658 13.134 13.590 15.622 17.292 Period 1% 2% 0.990 0.980 1.970 1.942 2.941 2.884 3.902 4.853 4.713 6 6.795 5.601 6.728 6.472 8 7.652 7.325 9 8.560 8.162 10 9.471 11 10.368 9.787 12 11.255 10.575 13 12.134 11.348 14 13.004 12.106 15 13. 865 12.849 16 14.718 13.578 17 15.582 14.292 18 16.398 14.092 19 17226 15.678 20 16 046 16.351 26 22.023 19.523 30 25 808 22398 35 29.409 24.999 4032 836 27.366 30 39.106 31424 50 44 55 34.761 120 69.701 45 355 4.486 4.611 4,715 194 0.971 1.913 2.829 3.717 4.580 5.417 6230 7.020 7.780 8.530 9.253 9.954 10 635 11.296 11.938 12.561 13.166 13.754 14 324 14.877 17.413 19.600 21.487 23.115 25.730 27.676 32 373 5% 0.952 0.943 0.935 1.850 1.833 1.808 2.723 2.673 2624 3.546 3.465 3.387 4.329 4212 4.100 5.076 4 917 4 767 5.786 5.582 5.389 6.463 6.210 5.971 7.108 6.802 6.515 7.722 7360 8.306 7.887 7.490 8.803 8.38 7.943 9394 8.853 8.358 9.899 9.295 8.745 10.380 9.712 9.108 10.838 10.106 11 274 10.477 9.763 11.690 10.828 10.069 12.085 11.158 10.336 12.462 11.470 10.504 14.09 12.783 11.654 15.372 W29 12.409 16.374 14.498 12.948 17.159 15.046 13.332 18 255 15.782 13.801 18.929 16.161 14.039 19.943 16.651 14 281 9% 10% 11% 12% 13% 15% 16% 0.917 0.909 0.901 0.893 OBAS OBTT 0.870 0.882 1.759 1.736 1.713 1.690 1.688 1.647 1.626 1.605 2531 2.487 2.444 2402 2361 2322 2283 2.246 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2700 3.800 3.791 3.696 3.605 3.517 3.433 3.352 3.274 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 5.033 4.868 4.712 4564 4423 4.280 4.160 4.030 5.535 5.335 5.146 4.988 4.799 4.639 4.487 4.344 5.995 5.750 5537 5 328 5.132 4.946 4.772 4.807 6.418 6.145 5.88 5,650 5 426 5.216 5,019 4.833 6.805 6.495 6.207 5.938 5.687 5.463 5234 5.029 7.161 6.814 6.492 5.918 6.860 5.421 5.197 7.487 7.103 6.750 6.424 6.122 5.842 5.50 5.342 7.786 7.367 6.982 6.628 6.302 6.002 6.724 5.468 7.600 7.191 6.811 6.462 5.847 5.575 8313 7.824 7.370 6.974 6.804 6 205 5.964 5.668 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 8.756 8.201 7.702 7.250 6.840 6.467 6.126 5.818 8.950 8.365 7.830 7.366 6.93 6.550 6.100 5.877 9.129 8.514 7.969 7.025 6.623 6.259 5.920 9.823 9077 8.42% 7.843 7.330 6.873 6.464 6.097 10 274 9.427 8.604 8.056 7.496 7.003 6.566 6.177 10.567 9.644 8.855 8.176 7.586 7.070 6.215 10.757 9.779 8.951 8.244 7.634 7.106 6.642 6.233 10.062 9.915 9.042 8.304 7.675 7.133 6.661 6.240 11.048 9.074 8.324 7.687 7.140 6.240 11.111 10.000 9.091 7.692 7.143 6.667 6.250 3.922 4.207 4.451 4.650 4,838 4.988 5.118 5.229 5.324 5.405 5.475 5.534 4.876 4.900 8 851 9.122 9.372 9.604 4.494 4.656 4.793 4.910 5.000 5.082 6.162 5.222 5.273 5.316 5.353 5.467 5.517 5.539 5.548 5.554 5.555 5.556 4.633 4611 4.675 4.730 4.775 4.812 4.843 4.80 4.48 4.99 5584 7489 6.617 5.628 5.766 5.829 5.850 5.871 5.380 5.882 5.882 5.OTO 5.101 5.195 5235 5.251 5.258 522 523 523 4987 10.675 11.258 11.655 11.925 12 233 12 377 12.499 18.665 19.793 21 482 22.623 24.774 5.000 5.000