#9

Current Attempt in Progress Blossom Company is considering investing in an annuity contract that will return $27,000 annually at the end of each year for 20 years Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided) What amount should Blossom Company pay for this investment if it earns an 6% return? (Round answer to 2 decimal places, es 25.25) Blossom Company should pay TABLE 1 Future Value of 1 (n) Periods 4% 5% 7% 6% 8% 12% 9X 15% 10% 11% 0 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.000.00 1.00000 1.00000 1.00000 1.04000 1 1.06000 1.07000 1.08000 1.15000 1.05000 1.09000 1.11000 1.10000 1.12000 2 1.08160 1.10250 1.12360 1.14490 1.16640 1.18810 1.32250 1.21000 1.23210 125440 3 1.12486 1.15763 1.19102 1.22504 1.25971 1.29503 1.33100 136763 1.40493 1.52088 4 1.21551 1.26248 1.31080 1.36049 1.41158 1.46410 1.74901 1.51807 1.57352 1.16986 1.21665 5 1.27628 1.33823 1.40255 1.46933 1.53862 1.61051 168506 1.76234 2.01136 6 1.26532 1.34010 1.41852 1.50073 1.58687 1.67710 1.77156 1.87041 1.97382 2.31306 7 1.31593 1.40710 1.50363 1.60578 1.71382 1.82804 1.94872 2.07616 2.21068 2.66002 8 1.36857 1.47746 1.59385 1,71819 1.85093 1.99256 2.14359 2.30454 2.47596 3.05902 9 1.55133 1.68948 1.83846 1.99900 2.12189 2135795 255803 2.77308 3.51788 1.42331 1.48024 10 1.62889 1.79085 1.96715 2.15892 2.36736 2.59374 2.83942 3.10585 4.04556 11 1.53945 1.21034 1.89830 2.10485 2133164 2.5803 2.85312 3.15176 3.47855 4.65239 12 1.60103 1.79586 2.01220 2.25219 2.51812 2.81267 3.13843 3.49845 3.89598 5.35025 13 1.66502 1.88565 2.13293 2.40985 271962 3.06581 3.45229 3.88328 4.36349 6.15229 14 1.73168 1.97993 2.26090 2.57853 2.93719 3.34173 3.79750 4.310-14 4.88711 7.07571 15 1.80094 2.07893 2.39656 2.75903 3.17212 3.64248 4.17225 4.78450 5.42357 8.13706 16 187298 2.18287 2.51035 2.95216 3.42594 3.97032 159497 5.31089 6.13039 9,35762 12 1,94790 2.29202 2.69277 3,15882 3.7002 4.32763 50542 1.89509 6.86604 10.76126 18 2.02582 2.0662 2.85434 3.32993 3.99602 4.71202 5.5.5992 6.54355 7.68997 1237545 19 2:10685 2152695 302560 3.61653 131520 5.14166 6.11591 126334 8.51276 14.23127 20 2.29112 2.65330 3 20714 3.86968 41.66096 SED 672250 8.06231 19.6-1629 16.36654 TABLE 2 Future Value of an Annuity of 1 () Payments 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 1.00000 1.00000 1.00000 1.0000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 N. 2.04000 2.05000 206000 2.0700 2.08000 2.09000 2.10000 2 11000 212000 2.15000 3 3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.31000 3.34210 3.37440 3.47250 4 4.24646 4.31013 4.37462 4.4399 4.50611 4.57313 4.64100 4.70973 4.77933 4.99338 5 5.41632 5.52563 5.63709 5.7507 5.86660 5.98471 6.10510 6.22780 6.35285 6.74238 6 6.63298 6.80191 6.97532 7.1533 7.33592 7.52334 7.71561 791286 8.11519 8.75374 7 7.89829 8.14201 8.39384 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680 8 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.89943 12.29969 13.72682 9 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 ID 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 11 13.48635 14.20679 14.97164 15.7836 16,64549 17.56029 18.53117 19.56143 20.65458 24,34928 12 15.02581 15.91713 16,86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 13 16.62684 17.71298 18.88214 22.95339 24.52271 26.21164 28.02911 34 35192 20.1406 22.5505 21.49530 24.21492 14 18.29191 19.59863 21.01507 26.01919 27.97498 30.09.492 32.39260 40.50471 15 20.02359 21.57856 23.27597 25. 1290 27.15211 29,36092 31.77248 34.40536 37.27972 47.58041 16 21.82453 23.65749 25.67253 27.8881 33.00340 35.94973 39,18995 12.75328 55.71747 30.32428 33.75023 17 23.69751 25.84037 28.21288 30.8402 36.97351 40.54470 44.50084 48.88367 65.07509 18 25.64541 28.13238 30.90565 33.9990 37.45024 41.30134 45.59917 55.74972 75.83636 19 27.67123 30.539000 33.75999 37.3790 41.44626 46.01846 51.15909 50.39593 56.93949 64.20283 63.43968 88.21181 20 29.77808 33,06595 36.78559 40.9955 45.76196 51.16012 57 27500 72.05244 102.44358 TABLE 3 Present Value of 1 (1) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 .96154 .95238 .94340 .93458 92593 91743 90909 .90090 89286 86957 2 92456 .90703 .89000 .87344 85734 84168 .82645 .81162 679719 75614 3 88900 .86384 83962 .81630 .79383 .77218 175132 .73119 171178 65752 4 .85480 .82270 79209 76290 173503 -70843 .68301 .65873 .63552 57175 I 5 .82193 78353 .74726 171299 .68058 .64993 .62092 .59345 56743 49718 6 .79031 .74622 -70496 66634 .63017 59627 56447 53464 50663 .43233 7 75992 .71068 .66506 .62275 .58349 54703 .51316 48166 .45235 37594 8 .73069 .67684 -62741 58201 54027 50187 .46651 -43393 40388 32690 9 .70259 .64461 59190 54393 50025 146043 42410 39092 36061 28426 10 .67556 .61391 55839 50835 146319 42241 38554 35218 32197 24719 .58468 -64958 52679 11 47509 142888 38753 31728 35049 28748 21494 12 55684 -62460 49697 44401 39711 135554 31863 .28584 25668 18691 .53032 13 46884 .60057 41496 36770 32618 625751 28966 .22917 16253 14 57748 44230 50507 38782 134046 29925 20462 14133 26333 23199 55526 ,48102 15 41727 36245 131524 27454 23939 20900 18270 12289 16 53391 39365 45811 33873 129189 18829 .25187 16312 21763 10657 51337 17 37136 31657 27027 43630 23107 16963 19785 .14564 09293 18 41552 .35034 29586 25025 21199 17986 49363 115282 08081 13004 47464 19 39573 27615 33051 23171 07027 1949 13768 16351 11611 45639 20 25842 37689 21455 12403 10367 31180 17843 14864 06110 TABLE4 Present Value of an Annuity of 1 (12) Payments 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 96154 -95238 94340 93458 92593 91743 90909 90090 .89286 86957 2 1.88609 1.85941 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 1.83339 2.67301 3 2.77509 2.72325 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 4 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 5 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 6 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 7 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 8 6.73274 6.46321 6.20979 5.97130 5.74664 S.S3482 5.33493 5.14612 4.96764 4.48732 9 743533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 10 8.11090 7.72173 7.36009 7.02358 6.71008 6,41766 6.14457 5.88923 5.01877 5.65022 11 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 5.42062 12 8.38384 9.38.507 7.94269 8.86325 7.53608 6.49236 7.16073 6.19437 6.81369 9.98565 13 9.39357 8.85268 8,35765 7.90378 7.48690 5.58315 6.74987 7.10336 6.42355 14 7.78615 8.74547 6.98187 9.89864 9.29498 8.24424 10.56312 7.36669 5.72448 6,62817 15 10.37966 9.71225 8.06069 6.81086 8.55948 11.11839 9.10791 7.19087 7.60608 5.84737 8.85137 8.31256 7.82371 6.97399 5.95424 9.44665 7.37916 16 11.65230 10.10590 10.83777 8.54363 8,02155 9.76322 7.54879 17 6.04716 7.11963 12.16567 9.12164 11.27407 1047726 8.20141 7.24967 6.12797 8.75563 IR 7.70162 12.65930 11.68959 10.82760 10.05909 9.37189 8.95012 7.83929 6.19823 12.08532 736578 19 10.33560 8.36492 13.13394 11.15812 9.60360 8.51356 7.96333 9.12855 6.25933 20 7.46944 13.59033 12.46221 10.59401 9.81815 11.46992