13. Present value You just found out that you had a vety eccentric unde who lived quietly in the Bronx. He left you $25,000. You just saw the movie The Bucket List and have decided that you want to put some money away so that in 12 years, you can start fulfilling items on that list. With whatever money you have left, you'll pay off some bills. You have found an investment instrument that will pay 7% interest annually. Use the scenarios along with the following factor table data to answer each of the questions. Note that the complete Future Value and Future Value Annuity tables (as well as the present Value and Present Value Annuity tablets) are located in the appendix in your text. Factor Tables Table of Present Value Factors Interest Rate Year 39 5% 7% 8% 99 .837 .746 .666 .630 596 3 1789 .677 582 540 502 10 744 .614 SOS 463 422 12 701 552 .444 397 356 15 642 481 362 315 .225 20 554 377 .258 215 178 Table of Present Value Annuity Factors Interest Rate Table of Present Value Annuity Factors Interest Rate Year 3% 5% 7% 8% 9% 6 5.417 5.076 4.767 4.623 4.486 8 6.463 5.971 5.747 5.535 7.020 10 8.530 7.722 7.024 6.710 6.418 12 9.954 8.863 7.943 7.536 7.161 15 11.938 10.380 8.560 9.108 10.594 8.061 9.129 20 14.878 12.462 9.818 Present Value of a Single Amount What is the amount you should invest today to have 528,750 in 12 years? Present Value of an Annuity Now the 12 years have passed, and you are ready to pull some money out of your fund. You talked to your investment advisor who says you can take this money and move it into a fund that will earn 8% interest annually. And you envisioni tackling most of your bucket list items over the next 15 years What is the annual amount you will have to spend for your bucket list activities