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Exercise 1. How much will $4000 grow to over 20 years if the annual rate of return is 6%? Submit your answer Exercise 2 if you need $80000 in 14 years, how much should you set aside today? Assume an 8% annual return? You know the FV and are trying to find the PV of single sum (PV $1 table). co Exercise 3 If you invest $5000 each year for 40 years, how much will you have at the end of 40 years assuming a 9% annual return? You're investing the same amount each year, so you know it is an annuity. Since you want to know what you'll have in the future, you use the future value of an annuity table. B 45 160 1728 2011 5.100 A B C D E F G H I J Future Value of $1 Period 19 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 1 1010 1020 1030 1040 1050 1060 1070 1080 1090 1100 11101 120 1130 1140 1.170 2 1020 1040 1061 1082 1.103 1.124 1145 1.165 1.188 1210 1232 1.254 1 277 1300 1 346 1 369 31030 1051 1093 1125 1150 1191 1225 1250 1295 1331 1368 1405 1443 1482 1561 1041 1082 1.126 1.17012161 262 1311 1350 1.412 1464 1518 1574 1.630 1689 1 874 5 1051 1.104 1159 1217 1276 1338 1403 1489 1.539 1.611 1685 1762 1.842 1925 2100 2.192 6 1062 1.125 1.194 1.265 1340 1.419 1.501 1587 1.677 1772 1870 1974 2082 2195 2.435 2565 7 1072 1.149 1230 1316 1407 1.504 1605 1714 1828 1949 2076 2211 2353 2.502 2826 3001 01083 1 172 1257 1.369 1477 1594 1718 1851 1.993 2 144 2305 2475 2558 2853 3278 3.511 9 1094 1195 1.305 1423 1551 1689 1838 1.999 2172 2358 2558 27733.004 3252 3510 3803 4 108 101 105 1 219 1344 1430 1620 1791 1957 2 159 2367 2594 28.39 3.106 3.395 3707 4,046 4.807 11 1.116 1243 1384 1539 1.710 1.898 2.105 2332 2380 2.853 3152 37479 3.836 4225 4,652 5.117 5.624 12 1.1271 268 1426 1601 1795 2012 2252 2518 2813 3.138 34983.896 4.335 4818 5.350 5.935 6580 13 1.138 1294 1.469 1.665 1.085 2.133 2410 2.720 30663452 3 883 4363 4898 5492 153 141 140 1319 1513 1732 1980 2261 25792937 3.34237974310 48875.535 5261 7076 7 988 9007 151.161 1346 1558 1801 2.079 2 397 2.759 3 172 3.642 4177 4.785 5.474 5254 7 138 137 9.286 10 539 16 1.173 1373 1 605 18732183 2.540 2952 3.426 3970 4.595 5.311 6.130 7,067 8.137 10.748 12 330 17 1.184 1400 1.653 1948 2292 2 693 3.159 3700 4328 5054 5895 6866 7986 9275 10.761 12468 14.425 18 1.190 1428 1.702 2028 2407 2854 3.380 3996 4 717 5.560 6544 7.690 9024 10 575 12375 14463 16 879 19 1 208 1.457 1.754 2 107 2527 3026 3617 4 316 5.142 6.116 72638613 10.197 12 056 14232 16.777 1 9 748 20 1.220 1486 1.806 2.191 2.653 3 207 3870 4.651 5.604 6.7278.062 0645 11.523 13.743 16 367 19.461 23 106 25 1282 1641 2094 2666 3386 4292 5427 6 BAB 8.623 10 835 13585 17 000 21231 26 452 3291940.874 50 658 30 1348 1811 2.427 3243 4322 5 743 7612 10.063 13 268 17.449 22.892 29 960 39.116 50 950 66212 85.850 111065 35 1417 2000 2814 3946 5.516 7.606 101677 14.785 20.414 29.102 38 575 52 800 72 059 98 100 133 178 180 314 243 503 40 1 489 2 200 3262 4801 7040 10 286 14 974 21 725 31.409 45 259 65.001 93.051 132.782 188.884 267.864 378.721 533 869 50 1645 2 692 4 384 7.107 11 46718 420 29457 46.902 74358 117.391 184.565 289.002 450 736 700233 1083 657 1.670.704 2.566 215 18% 1180 1392 1.415 1543 1.939 2.074 2288 2 386 2488 2700 2840 3.185 3379 3.583 3.759 4,021 4300 4435 4785 5234 5695 6192 6.777 7430 7208 8.064 8.916 8.599 9596 10 599 10 147 11.420 12 839 11.974 13 590 15.407 14 129 16 172 18 488 16.672 19 244 22. 185 19 673 22 901 25 523 23 214 27.252 31.948 27.393 32 429 38 338 62659 77.389 95 396 143371 184.675 237 378 327 997 440.701 590.6.68 750 378 1,051.668 1.469.772 3.927 357 5.988 914 9.100.438 7699 5.686 auw Period 193 295 3% 10 .990 0.980 0.971 2 0.980 0.961 0943 3 0.971 0942 0.915 4 0.961 0.924 0.888 5 0.951 0.906 0.863 6 0.942 0.888 0.837 7 0.933 0.871 0.813 8 0.923 0.853 0.789 90.914 0.837 0.766 10 0.905 0 820 0.744 11 0.896 -0.804 0.722 12 0.887 0.788 0.701 13 0.879 0.773 0.681 14 0.870 0.758 0.661 151 0.861 0743 0.642 16 0.853 0.728 0.623 17 0.844 0.714 0.605 18 0.836 0.700 0.587 19 0.828 0.686 0.570 20 0.820 0.673 0554 25 0.780 06100 478 30 0.742 0.552 0.412 35 0.706 0.500 0.355 40 0.672 0.453 0.307 50 0.608 0.372 0.228 Present Value of $1 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 0.962 0.952 0.9430.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0855 0.847 0840 0833 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.889 0.864 0.8400816 0.7940.772 0.751 0.731 0.712 0.693 0.675 0658 0.641 0.624 0.609 0.593 0.579 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.822 0784 0.747 0713 0.681 0.650 0.621 10.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.7600.711 0.665 0.623 0.583 0 547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0 279 0.731 0.677 0.627 0.582 0.540 0.502 0.467 10 434 0.404 0.376 0.351 0.327 0 305 0285 0.265 0249 0.233 0.703 0.6450.592 0.544 0.500 0.460 0.4240391 0.361 0.333 0.308 02840263 0.243 0225 0.209 0.194 0.676 0.614 0.558 0.500 0.463 0.422 0.386 0352 0322 0295 0270 0247 0.227 0.208 0.191 0.176 0.162 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0 261 0237 0.215 0.195 0.178 0.162 0.148 0.135 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0 286 0257 0231 0208 0.187 0.168 0.152 0.137 0124 0.112 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.555 0.481 0417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 10.108 0,095 0.084 0.074 0.065 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0,052 0.045 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.475 0.396 0.331 0.277 0232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.456 0377 0.3120.258 0215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0043 0.037 0.031 0.026 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0,038 0.030 0.024 0.020 0,016 0013 0.010 0.308 0.231 0.174 0.131 0099 0.075 0.057 0.044 0.033 0.026 0.020 0,015 0,012 0.009 0.007 0.005 0.004 0.253 0.18 0.130 0.094 0.068 0.049 0.036 0.025 0.019 0.014 0010 0.008 0.006 0.004 0.003 0.002 0.002 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.008 0.005 0.0040.003 0.002 0.001 0.001 0.001 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.005 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000