7 Skipped John Regan, an employee at Home Depot, made deposits of $720 at the end of each year for 4 years. Interest is 4% compounded annually. What is the value of John's annuity at the end of 4 years? (Use Table 13.1.) (Do not round intermediate calculations. Round your answer to the nearest cent.) John's annuity TABLE 13-1 Ordinary annuity table: Compound sum of an annuity of $1 Period 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 23 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 2.1000 2.1100 2.1200 2.1300 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.3421 3.3744 3.4069 4 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.7097 4.7793 4.8498 5 52040 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.2278 6.3528 6.4803 6 6.3081 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.7156 7.5233 7.9129 8.1152 8.3227 7 7.4343 7.6625 7.8983 8.1420 8.3938 8 8.5829 8.8923 9.2142 9 9.7546 10.1591 10.5828 10 10.9497 11.4639 12.0061 12.5779 11 12.1687 12.8078 13.4863 14.2068 8.6540 9.8975 10.2598 9.5491 11.0265 11.4913 11.9780 13.1808 13.8164 14.9716 15.7836 12 13.4120 14.1920 15.0258 15.9171 16.8699 17.8884 16.6268 17.7129 16.6455 18.9771 18.8821 20.1406 21.4953 13 14.6803 15.6178 21.0150 22.5505 24.2149 19.5986 14 15.9739 17.0863 18.2919 34.4054 37.2797 40.4174 15 17.2934 18.5989 20.0236 21.5785 23.2759 25.1290 27.1521 35.9497 25.6725 27.8880 30.3243 39.1899 42.7533 46.6717 16 18.6392 20.1569 21.8245 23.6574 40.5447 28.2128 30.8402 33.7503 44.5008 48.8837 53.7390 17 200120 21.7616 23.6975 25.8403 41.3014 45.5992 50.3959 55.7497 61.7251 28.1323 18 214122 23.4144 25.6454 30.9056 33.9990 37.4503 51.1591 46.0185 56.9395 63.4397 70.7494 19 22.8405 25.1169 27.67 12 30.5389 33.7599 37.3789 41.4463 57.2750 64.2028 72.0524 80.9468 45.7620 51.1602 20 24.2973 26.8704 33.0659 36.7855 40.9954 98.3471 114.4133 133.3338 155.6194 25 32.0302 36.4593 41.6459 47.7270 54.8644 63.2489 73.1060 84.7010 30 40.5679 47.5754 56.0849 66.4386 79.0580 94.4606 113.2833 136.3077 164.4941 199.0209 241.3327 293.1989 40 60.4017 75.4012 95.0254 120.7993 154.7616 199.6346 259.0569 337.8831 442.5928 581.8260 767.0913 1013.7030 50 84.5790 112.7968 152.6669 209.3470 290.3351 406.5277 573.7711 815.0853 1163.9090 1668.77 10 24000180 3459.5010 Note: This is only a sampling of tables avaliable. The Business Math Handbook shows tables from % to 15% 29.7781 8.9228 9.2004 9.4872 10.6366 11.0285 11.4359 12.4876 13.0210 13.579 14.4866 15.1929 17.5603 9.7833 10.0890 10.4047 11.8594 12.2997 12.7573 14.1640 14.7757 15.4157 15.9374 16.7220 17.5487 18.4197 18.5312 19.5614 20.6546 21.8143 20.1407 21.3843 22.7132 24.1331 25.6502 22.9534 24.5227 26.2116 28.0291 26.0192 27.9750 29.9847 30.0949 32.3926 34.8827 29.3609 31.7725 33.0034 36.9737 8 On Joe Martin's graduation from college. Joe's uncle promised him a gift of $12,700 in cash or $830 every quarter for the next 5 years after graduation. Assume money could be invested at 8% compounded quarterly. (Use Table 13.2.) a. Calculate the present value of options. (Do not round intermediate calculations. Round your answers to the nearest cent.) Present value Skipped Option 11 Option 21 b. Which offer is better for Joe? O Option 2 Option 1 TABLE 13-2 Present value of an annuity of $1 Period 2% 3% 4% 5% 6% 7% 1 09804 0.9709 09615 0.9524 2 1.9416 19135 3 2.8839 4 3.8077 5 80 5.6014 64720 7.3255 9 8.1622 7.7861 7.4353 7.1078 10 8.9826 8.5302 8.1109 77217 11 97868 92526 87605 8.3064 12 10.5753 99540 9.3851 8.8632 8.3838 7.9427 13 11.3483 10.6350 9.9856 93936 8.8527 83576 14 12.1062 11.2961 10.5631 9.8986 9.2950 8.7455 15 12.8492 11.9379 11 1184 16 135777 12.5611 11.6523 17 14.2918 13.1661 12 1657 18 14.9920 13.7635 12.6593 19 20 156784 14.3238 13.1339 16.3514 14.8775 12.0853 13.5903 124622 25 19.5234 17,4131 15.6221 14.0939 103796 9.7122 10.8378 10.1059 94466 11.2741 10.4773 97632 11.6896 10.8276 100591 11 1581 10.3356 11.4699 10.5940 12.7834 11.6536 9.1079 30 22.3964 19.6004 40 27.3554 231148 50 314236 25.7298 9% 0.9434 0.9346 0.9259 09174 0.9091 0.9009 0.8929 0.8850 1.8861 1.8594 18334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 1.6681 2.8286 2.7751 27232 2.6730 2.6243 2.5771 25313 2.4869 24437 24018 37171 3.6299 3.5459 3.4651 3.3872 3.3121 3.2397 3.1699 3.1024 3.0373 47134 45797 4.4518 43295 42124 4.1002 3.9927 38897 3.7908 3.6959 3.6048 3.5172 54172 5.2421 5.0757 4.9173 47665 4.6229 4.4859 4.3553 4.2305 4.1114 3.9975 6.2303 6.0021 57864 55824 5.3893 5.2064 50330 4.8684 4.7122 4.5638 4.4226 7.0197 6.7327 6.4632 62098 59713 5.7466 5.5348 53349 5.1461 4.9676 4.7988 68017 65152 6.2469 5.9952 5.7590 55370 53282 51317 7 3601 7.0236 64177 6.1446 58892 5.6502 54262 7.8869 7.4987 6.8052 6.4951 62065 5.9377 5.6869 7.1607 68137 6.4924 6.1944 9176 7.4869 7.1034 6.7499 6.4235 6.1218 77862 73667 6.9819 66282 6.3025 80607 7.6061 7.1909 6.8100 64624 83126 7.8237 73792 6.9740 66039 8.5436 8.0216 75488 7.1196 6.7291 87556 82014 7.7016 72497 6.8399 8.95011 8.3640 7.8393 7.3658 6.9380 91285 85136 7.9633 7.4694 7.0248 9.8226 9.0770 8.4217 78431 7.3300 17.2920 15.3724 13.7648 124090 102737 94269 8.6938 8.0552 7.4957 19.7928 17.1591 15.0463 133317 107574 0,7700 7.6344 8.9511 8.2438 7.6752 21.4822 182559- 15.7619 13.8007 12.2335 10.9617 99148 0.0417 8.3045 8% 10% 11% 12% 13% 2.3612 2.9745 67101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 9.3719 0.6036 98181 10.6748 11.2578 11.9246