An investor decides to invest $100,000 in a mutual fund that will earn 9% per year. The proceeds will be accumulated as a lump sum and paid out at the end of year 10. The investor's effective income tax rate is 33%, and inflation will average 3% per year. What is today's purchasing power equivalent of the investor's investment? N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Discrete Compounding; i=3% Single Payment Uniform Series Compound Compound Capital Amount Present Amount Present Sinking Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P F/P P/F FIA P/A A/F A/P 1.0300 0.9709 1.0000 0.9709 1.0000 1.0300 1.0609 0.9426 2.0300 1.9135 0.4926 0.5226 1.0927 0.9151 3.0909 2.8286 0.3235 0.3535 1.1255 0.8885 4.1836 3.7171 0.2390 0.2690 1.1593 0.8626 5.3091 4.5797 0.1884 0.2184 1.1941 0.8375 6.4684 5.4172 0.1546 0.1846 1.2299 0.8131 7.6625 6.2303 0.1305 0.1605 1.2668 0.7894 8.8923 7.0197 0.1125 0.1425 1.3048 0.7664 10.1591 7.7861 0.0984 0.1284 1.3439 0.7441 11.4639 8.5302 0.0872 0.1172 1.3842 0.7224 12.8078 9.2526 0.0781 0.1081 1.4258 0.7014 14.1920 9.9540 0.0705 0.1005 1.4685 0.6810 15.6178 10.6350 0.0640 0.0940 1.5126 0.6611 17.0863 11.2961 0.0585 0.0885 1.5580 0.6419 18.5989 11.9379 0.0538 0.0838 1.6047 0.6232 20.1569 12.5611 0.0496 0.0796 1.6528 0.6050 21.7616 13.1661 0.0460 0.0760 1.7024 0.5874 23.4144 13.7535 0.0427 0.0727 1.7535 0.5703 25.1169 14.3238 0.0398 0.0698 1.8061 0.5537 26.8704 14.8775 0.0372 0.0672 WN O N w12345678sUTUBH bbPB pm Discrete Compounding; i = 9% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA PIA A/F 1.0900 0.9174 1.0000 0.9174 1.0000 1.1881 0.8417 2.0900 1.7591 0.4785 1.2950 0.7722 3.2781 2.5313 0.3051 1.4116 0.7084 4.5731 3.2397 0.2187 1.5386 0.6499 5.9847 3.8897 0.1671 1.6771 0.5963 7.5233 4.4859 0.1329 1.8280 0.5470 9.2004 5.0330 0.1087 1.9926 0.5019 11.0285 5.5348 0.0907 2.1719 0.4604 13.0210 5.9952 0.0768 2.3674 0.4224 15.1929 6.4177 0.0658 2.5804 0.3875 17.5603 6.8052 0.0569 2.8127 0.3555 20.1407 7.1607 0.0497 3.0658 0.3262 22.9534 7.4869 0.0436 3.3417 0.2992 26.0192 7.7862 0.0384 3.6425 0.2745 29.3609 8.0607 0.0341 3.9703 0.2519 33.0034 8.3126 0.0303 4.3276 0.2311 36.9737 8.5436 0.0270 4.7171 0.2120 41.3013 8.7556 0.0242 5.1417 0.1945 46.0185 8.9501 0.0217 5.6044 0.1784 51.1601 9.1285 0.0195 Capital Recovery Factor To Find A Given P A/P 1.0900 0.5685 0.3951 0.3087 0.2571 0.2229 0.1987 0.1807 0.1668 0.1558 0.1469 0.1397 0.1336 0.1284 0.1241 0.1203 0.1170 0.1142 0.1117 0.1095 9 10 11 15 16 17 18 19 20