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Posted on Aug 29, 2024

10. You are offered $900 after five years (Offer 1) or $150 a year for five years (Offer 2). If you can earn 7 percent

10. You are offered $900 after five years (Offer 1) or $150 a year for five years (Offer 2). If you can earn 7 percent on your funds, calculate the future values of both payments. Use Appendix C to answer the question. Round your answers to the nearest dollar 11 FV(Oer 1): FV(Offer 2): 12 13. Which offer will you accept? C -Select 14 If you can earm 18 percent on your funds, calculate the future values of both payments. Use Appendix C to answer the question. Round your answers to the nearest dollar 15 C FV(Oer 1): FV(offer 2) Which offer will you accept, if you can earn 18 percent on your funds? Select- Why are your answers different? Party The choices are different as the higher interest rate select O Interest Factors for the Future Value of an Annuity of One Dollar Time Period (e.g. year) 1% 2% 3% 5 % 4% 6% 7% 9 % 8 % 10% 12% 14 % 16% 20% 1 1.000 2.010 1,000 2.020 3.060 4.122 5.204 1.000 2.030 3.091 4,184 5.309 1.000 2.040 3.122 4.246 1.000 2.050 2.060 3.152 4.310 1,000 1000 1.000 2.080 3.246 4.506 5.867 1.000 1.000 2.100 3.310 1.000 1.000 1.000 2.160 1.000 2 2.070 3.215 4.440 5.751 2.090 3.278 2.120 3.374 4770 6.353 2.140 3.440 2.200 3.640 3.030 4.060 5.101 3.184 4.375 5.637 3.506 5.067 4.573 4.641 4,921 5.368 5.416 5.526 5985 6.105 6.610 6.877 7.442 6.152 7214 6.308 7434 8.583 9.755 10.950 6.468 7662 8.892 10.159 11.464 6.633 7898 9214 10.583 12.006 6.802 6.975 8.394 7153 8.654 10.260 11.978 13.816 7.336 8.923 10.637 12.488 14.487 7523 9.200 11.028 13.021 15 193 7.716 9.487 11.436 13.579 8.115 10.089 8.536 10.730 13.233 16.085 8.978 11.413 14 240 17.518 21321 7 9.930 12.915 16.499 20.798 25.958 8.142 9.549 11.027 12.578 8.286 9.369 10.462 9.897 11.491 13.181 12.300 9 10 14.776 15.037 17.540 19.337 11 11.567 12.683 13 800 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 13.486 15.026 16.627 18.292 20024 14.207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.051 23.276 15.784 17888 20.141 22 550 25.129 16.645 17.560 20.141 22 953 18.531 21.384 24.523 27975 31.772 12 20.655 24.138 28.029 32 393 37280 23.044 27.271 32.089 37.581 43 842 25.732 32.150 39.580 48.496 59.19 72.035 18.977 21.495 24.215 27.152 13 14 30 850 36.786 43.672 26.019 15 18.599 29.361 51.659 16 17258 18.430 18.639 20.012 21.412 20.157 21.762 21.825 23.698 23.657 25 840 28.132 30.539 33.066 25.673 28.213 30.906 33.760 36.786 27888 30 840 33.999 37.379 40 995 30.324 33.750 37450 41.446 45 762 33.003 36974 41 301 46.018 51.160 35.950 40.545 45 599 51.159 57.275 42.753 48.884 55.750 63.440 72.052 17 18 S0.980 59.118 68.934 60925 71.673 105.93 84.140 128.11 98.603 15474 115 370 186.68 87442 19.615 20.811 22.019 23.414 25.117 26.870 25.645 27671 29.778 19 20 22 841 24.297 78.969 91.025 25 28.243 32030 36 459 41.646 47.727 54.865 63 249 73.106 84.701 98.347 133.33 181.87 249.210 471.98 30 34.785 40.568 47575 56.085 66 439 79.058 94.461 113.283 136 308 164 494 241.333 356 878 530 310 1181 8 Interest Factors for the Future Value of an Annuity of One Dollar Time Period (e.g. year) 2% 3% 4% 5% 6% 7% 8% 9% 10% 12 % 14% 16% 20% 1.000 1.000 2020 3.060 4.122 5.204 1.000 1.000 1.000 2.050 3.152 4.310 5.526 1.000 2.060 1.000 1.000 2.080 3.246 1.000 2.090 3.278 1.000 2.100 3310 4.641 6.105 1.000 2.120 3.374 1000 1.000 2.160 3.506 5.067 1.000 2.200 3.640 5.368 7442 2.010 3030 4.060 2.030 3.091 4.184 5.309 2.040 3.122 4.246 5.416 2.070 3.215 2.140 3.440 4.921 6610 3.184 4.375 5.637 4.440 4.506 4.573 4.770 5 5.101 5.751 5.867 5.985 6.353 6.877 6 6.152 7214 8.286 6.308 7434 6.468 7662 8.892 10.159 11.464 6.633 7898 9.214 10.583 12.006 6.802 8 142 9.549 11.027 12.578 6.975 8.394 9.897 7.153 8.654 10.260 7.336 8.923 10.637 12.488 14.487 7523 9.200 11.028 13.021 15.193 7716 9.487 11.436 13.579 15.937 8.115 8.536 10.730 13.233 8.978 11.413 9.930 7 10.O89 12.915 16.499 20.798 21.321 25.958 8.583 9.755 10.950 12.300 14.240 17.518 9.360 11.491 13.181 11.978 13.816 14.776 17.549 16.085 10 10.462 19.337 11 11.567 12.169 13.412 14.680 15.974 12 808 14.192 15.618 17086 18.599 13.486 15.026 16.627 18.292 20.024 14.207 15.917 17713 19.599 21.579 14.972 16.870 18.882 21.051 23.276 18.531 15.784 17 888 16.645 18.977 21495 24.215 27.152 17.560 20.141 22.953 26.019 29.361 20.655 24.138 28.029 32.393 37280 23.044 27.271 32.089 25.732 30.850 36.786 43.672 51.659 32.150 39.580 48.496 59.195 72.035 12 13 12.683 13.809 14.947 16.097 21.384 20.141 22.550 25.129 24.523 27.975 31.772 14 15 37581 17.293 43 842 16 11 18 109 17.258 18.430 18.639 20.012 21.412 22.841 24.297 20.157 21.762 23414 25.117 26.870 21825 23.698 25.645 27671 29.778 23 657 25.840 28.132 30 539 33.066 25.673 28.213 30.906 33 760 36.786 27 888 30.840 33 999 37.379 40.995 30 324 33.750 37450 41.446 45.762 33.00 36974 41301 35.950 40545 45 599 42 753 48.884 55750 63.440 72.052 50980 59118 68.934 78969 91.025 60.925 71673 105 93 84.140 128.11 98.603 154.74 115.370 186.68 87442 19.615 20 811 22.019 46.018 51.159 57275 20 51.160 25 28.243 32.030 36.459 41.646 47727 54.865 63.249 73106 84.70 98 347 133.33 181.87 249 210 471.98 30 34.785 40.568 47575 56.085 66.439 79.058 94 461 113 283 136 308 164 494 241 333 356 878 530 310 1181 8