1 More Info a. $6,000 is deposited in the bank today for a period of six years. Calculate the value of the $6,000 at the end of six years assuming it earns 10 percent interest. b. How much must you invest today in order to receive $7,000 at the end of each year for the next four years assuming you can earn 7 percent interest? c. $2,000 will be invested at the end of each year for a period of ten years. Calculate the value of the investment at the end of ten years assuming it earns 8 percent interest. d. The company you work for wants to purchase a new piece of equipment that is estimated to cost $31,000 eight years from now. How much must they invest today in order to have the $31.000 necessary to purchase the equipment if they can earn 7 percent interest? A Reference Periods 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 5% 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 Present Value of $1 7% 8% 0.935 0.926 0.873 0.857 0.816 0.794 0.763 0.735 0.713 0.681 0.666 | 0.630 0.623 | 0.583 0.582 0.540 0.544 0.500 0.508 0.463 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 Reference Periods 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 5% 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 11.027 12.578 Future Value of Annuity of $1 6% 7% 8% 9% 10% 1.000 1.000 1.000 1.000 1.000 2.060 2.070 2.080 2.090 2.100 3.184 3.215 3.246 3.278 3.310 4.375 4.440 4.506 4.573 4.641 5.637 5.751 5.867 5.9856 .105 6.975 7.153 7.336 7.523 7.716 8.394 8.654 8.923 9.200 9.487 9.897 10.260 10.637 | 11.028 11.436 11.491 11.978 12.488 13.021 13.579 13.181 | 13.816 14.487 15.193 15.937 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 14% 16% 1.000 1.000 2.140 2.160 3.440 3.506 4.921 5.066 6.610 6.877 8.536 8.977 10.730 11.414 13.233 14.240 16.085 17.519 19.337 | 21.321