Answer each of the following independent questions. Ignore personal income taxes Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Suppose you invest $4,400 in an account bearing interest at the rate of 10 percent per year. What will be the future value of your investment in five years? You at 8 parcent anual interest What is the present value of vour friend's 2 fioure that if uhad the mop future gift? today you could iovest 3. are reacy to buN How much mo0ey would you need to invest each ear in an account bearing interest at the rate of 4 percent per accumulate the $71,500 purchase price? year in order 4. eed in wour account row inorder to withrlras the required amount each wearz Your account bears intarest at 6 parcant nervear Complete this question by entering yoar anewers in the tahe helow. Required Requied 2 Required 3 Required 4 e rate of 10 percent per year. What will be the funune valac ef your investment in five years? l wer to 2 decial olce g ienest att The future value of the investment Required 2 Table I Future Value of $1.00(1 + 4% 12% Perled 6% 8% 10% 14% 20% 1040 1.060 1.100 1.120 1200 1 1.080 .140 1,082 1.124 1.210 1.254 1.300 2 1.166 1.440 1.125 1.191 1.331 1.728 1260 1,405 1482 1.263 1.170 1689 2074 1361 1.464 1.574 1211 1 469 1.611 1.76 1.926 2488 1.338 1.266 1587 1.772 2195 2986 1.415 1.974 1316 1.504 1714 1.949 2.211 2502 3.583 1.851 3707 1,480 2.159 6.192 10 .791 2504 3106 1540 3 479 4226 7.430 11 1.898 2.332 2.853 4818 1,001 2518 3.139 3.89 136 8.916 10.600 12 2,012 1.868 5.492 13 2.13 2.720 3452 1.732 2.937 6.261 12.839 14 2.26 3.798 4 887 2,397 1801 3.172 4.177 5474 7.138 15407 9.64 20 2.19 3,207 4661 6.728 13743 38.338 40 4801 10,286 21.725 45.260 93051 188.880 1,469.800 Table II Future Value of a Series of Peried 10 % 4% 6% 8% 129% 14% 20% f 1,000 1,000 1.000 1,000 1.000 1.000 1,000 1.00 Cash Flows 2.040 2.060 2080 2.100 2.120 2.140 2220 (Ordinary Annuity) (1n- 3.122 3.374 3.184 3.246 3.440 3.310 3.640 5.416 5.837 5867 6.105 6.353 6.610 7442 8.536 9.930 6.633 6.97 7.330 7.716 8.115 8.39 9487 10.089 10.730 12916 7 7.898 8.923 9214 10.637 16.499 9 898 11.436 12300 13.233 10.583 11.49 12488 13.580 14.776 16.085 20.790 12.006 14.487 17.549 19.337 25.969 10 13 18 15.938 13.486 14.972 23.045 32.150 11 16.646 18.531 20.655 15 15.026 16.870 18.977 21.385 24.133 27.271 30.580 16.627 18.88 28.02 12 21.496 24.523 32.089 48.407 43.842 72035 15 20.024 23.276 27.152 31.773 37,280 186.600 20 29.778 36.778 45.762 57.276 91.025 75.05: 356.790 79.058 30 56.085 113.283 164.496 241.330 1,181.900 40 96.026 154.762 259,057 442.597 767.090 1.342000 7.343.900 Table III Present Value of $100 (1+ 20% Period 4% 6% 8% 10% 12% 14% 16% 18% 22% 24% 26% 28% 30% 32% .877 758 962 943 926 .909 893 862 .847 833 820 806 794 781 769 2 925 890 857 .826 797 769 743 718 094 672 650 .630 610 592 574 889 840 794 751 712 675 641 .609 579 551 524 500 477 455 435 4 855 792 735 683 636 592 552 516 482 451 423 397 373 350 329 5 822 747 681 .621 567 519 476 437 402 370 341 315 291 269 250 6 790 705 630 564 507 456 410 370 335 303 275 250 227 207 189 24 7 760 665 583 513 45 40 354 279 222 19 78 159 143 8 731 627 540 467 404 351 305 266 233 204 179 157 139 .123 108 703 592 500 424 361 308 263 225 194 167 144 125 108 094 082 676 558 463 322 270 227 .137 085 073 062 10 386 191 .162 116 .099 11 650 527 429 350 287 237 195 162 .135 112 094 079 066 056 047 12 625 497 397 319 257 208 168 137 112 092 076 062 052 043 .036 368 .050 13 601 469 290 229 .182 145 116 093 075 061 040 033 027 14 577 442 340 263 205 160 125 .099 078 062 049 .039 032 025 021 15 555 417 315 239 183 .140 108 .084 065 051 040 031 .025 020 016 20 456 312 215 149 104 073 051 .037 026 019 014 010 007 005 004 30 308 174 099 .057 033 020 012 .007 004 003 002 001 001 011 001 40 208 097 046 022 005 003 .001 Table IV Present Value of Serles of $1.00 Cash Flows 1 (1+ ) 30% Period 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 25% 26% 28% 1 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.800 0.794 0.781 0.769 2 1.886 1.833 1.783 1.736 1,690 1.647 1,605 1.566 1.528 1.492 1.457 1.440 1424 1.392 1.361 1.952 3 2775 2.673 2.577 2.487 2.402 2322 2.246 2.174 2.106 2,042 1.981 1.923 1,868 1.816 4 3.630 3.465 3.312 3.170 3,037 2.914 2.798 2,690 2.589 2.494 2.404 2.362 2320 2.241 2.166 5 4.452 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2689 2.635 2,532 2.436 4,355 3.889 3,685 3,498 3.326 3.167 3.020 2,951 2885 2.759 5242 6 4.917 4.623 4.111 2.643 4.868 3.605 3.242 3.161 3.083 2.937 7 6.002 5.582 5.206 4.564 4.288 4.039 3,812 3.416 2.802 5.335 4,968 3.619 8 6.733 6.210 5.747 4.639 4.344 4.078 3.837 3.421 3.329 3.241 3.076 2.925 3366 9 7.435 6.802 6.247 5.759 5,328 4.946 4.607 4.303 4.031 3.786 3.566 3.463 3.184 3.019 10 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.571 3.465 3.269 3.092 8.111 11 8.760 7.887 7,139 6.495 5.938 5.453 5,029 4,656 4327 4.035 3.776 3.656 3.335 3.147 3,544 12 9.385 8.384 7,536 6.814 6.194 5,660 5.197 4.793 4.439 4.127 3.851 3.725 3.606 3.387 3.190 13 9.986 8.853 7.904 7.103 6.424 5,842 5.342 4.910 4.533 4.203 3.912 3.780 3.656 3.427 3.223 14 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.824 3.695 3.459 3.249 15 11.118 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 4.315 4.001 3.859 3.726 3.483 3.268 5.353 20 13.590 11.470 9.818 8.514 7,469 6.623 5.929 4.870 4.460 4.110 3.954 3.808 3.546 3.316 30 17.292 13.765 11.258 9.427 8,055 7.003 6.177 5.517 4.979 4.534 4.160 3.995 3.842 3.569 3.332 40 19.793 15.046 11.925 9.779 7,105 6.234 5548 4.997 4.544 3,999 3.571 3.333 8.244 4.166 3.846