1. Suppose you invest a sum of $3,000 in an interest-bearing account at the rate of 10% per year. What will the investment be worth six years from now? 2. How much would you need to invest now to be able to withdraw $12,000 at the end of every year for the next 20 years? Assume an 8% interest rate. 3. Assume that you want to have $170,000 saved seven years from now. If you can invest your funds at a 6% interest rate, how much do you currently need to invest? 4. Your aunt Cathy plans to give you $3,000 at the end of every year for the next ten years. If you invest each of her yearly gifts at a 14% interest rate, how much will they be worth at the end of the 10-year period? 5. Suppose you want to buy a small cabin in the mountains four years from now. You estimate that the property will cost $52,000 at that time. How much money do you need to invest each year in an interest-bearing account at the rate of 6% per year to accumulate the purchase price? Present Value of $1 % & Periods 1% 2% 3% 4% 5% Period 1 0.990 0.980 0.971 0.962 0.952 Period 2 0.980 0.961 0.943 0.925 0.907 Period 3 0.971 0.942 0.915 0.889 0.864 Period 4 0.961 0.924 0.888 0.855 0.823 Period 5 0.951 0.906 0.863 0.822 0.784 Period 6 0.942 0.888 0.837 0.790 0.746 Period 7 0.933 0.871 0.813 0.760 0.711 Period 8 0.923 0.853 0.789 0.731 0.677 Period 9 0.914 0.837 0.766 0.703 0.645 Period 10 0.905 0.820 0.744 0.676 0.614 Period 110.896 0.804 0.722 0.650 0.585 Period 12 0.887 0.788 0.701 0.625 0.557 Period 13 0.879 0.773 0.681 0.601 0.530 Period 14 0.870 0.758 0.661 0.577 0.505 Period 15 0.861 0.743 0.642 0.555 0.481 6% 8% 10% 12% 14% 16% 18% 20% 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.890 0.8570.826 0.797 0.769 0.743 0.718 0.694 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 200.820 0.673 0.554 0.456 Period 25 0.780 0.610 0.478 0.375 Period 30 0.742 0.552 0.412 0.308 Period 40 0.672 0.453 0.307 0.208 0.377 0.312 0.295 0.233 0.231 0.174 0.142 0.097 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.099 0.057 0.033 0.0200.012 0.007 0.004 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 Period 7 6.728 6.4726.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 Period 9 8.566 8.1627.786 7.435 7.108 6.8026.247 5.759 5.328 4.946 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 Period 11 | 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 Period 12 | 11.255 10.575 9.954 9.3858.863 8.384 7.536 6.814 6.194 5.660 5.197 Period 13 12.134 11.348 10.635 9.9869.3948.853 7.904 7.103 6.424 5.842 5.342 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 Period 15 13.865 12.849 11.938 11.118 10.380 9.7128.559 7.606 6.811 6.142 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 Period 2018.046 16.351 14.877 13.590 12.462 | 11.470 9.818 8.514 7.469 6.623 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.873 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 5.929 6.097 6.177 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 6.233 Future Value of $1 20% 1.200 1.440 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 1.728 2.074 2.488 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4435 5.234 2.986 3.583 4.300 5.160 6.192 1.710 1.796 Period 11 Period 12 Period 13 Period 14 Period 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 Period 20 Period 25 Period 30 Period 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.661 6.727 9.646 13.743 | 19.461 27.393 38.338 4.292 6.848 10.83517.000 26.462 40.874 62.669 95.396 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Future Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 10.462 10.950 11.464 12.006 12.578 13.181 14.48715.937 17.549 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 20% 1.000 2.200 3.640 5.368 7.442 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 11.567 12.169 12.808 | 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 13.809 14.680 15.618 | 16.627 17.713 18.882 21.495 24.523 28.029 14.94715.974 17.086 18.292 19.599 21.015 24 215 27.975 32.393 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 Period 20 Period 25 Period 30 Period 40 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 | 72.052 91.025 115.380 146.628 186.688 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 34.785 40.568 47.575 56.08566.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 Solve various time value of money scenarios. (Click the icon to view the scenarios.) (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value annuity factor table.) FREE Scenario 1. Suppose you invest the nearest whole dollar.) sum of $3,000 in an interest-bearing account at the rate of 10% per year. What will the investment be worth six years from now? (Round your answer to In six years the investment will be worth