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? 2. Your best friend won the state lottery and has offered to give you $11,900 in five years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at 8 percent annual interest. What is the present value of your friend's future gift? 3. In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $71,500 when you are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of 4 percent per year in order to accumulate the $71,500 purchase price? 4. You have estimated that your educational expenses over the next four years will be $14,9 00 per year. How much money do you need in your account now in order to withdraw the required amount each year? Your account bears interest at 6 percent per year Complete this question by entering your answers in the tabs below Required Required 2 Required 3 Required 4 Suppose you invest $4,400 (Round your answer to 2 decimal places.) an account bearing interest at the rate of 10 percent per year. What will be the future value of your investment five years? The future value of the investment Required 1 Required 2 Table I 4% 6% 12 % 20% Period 8% 10% 14% Future Value of $1.00(1 1 1.040 1,060 1.080 1.100 1.120 1.140 1.200 2 1.082 1.124 1.166 1.210 1.254 1.300 1.440 3 1.125 1.191 1.260 1.331 1.405 1.482 1.728 4 1.170 1.263 1.361 1.464 1.574 1.689 2,074 5 1.217 1.338 1.469 1.611 1.762 1.925 2.488 1.265 6 1.419 1.587 1.772 1.974 2,195 2.986 7 1.316 1,504 1,714 1.949 2.211 2.502 3.583 8 1.369 1.594 1.851 2.144 2.476 2.853 4.300 9 1.423 1.690 1.999 2.359 2.773 3.252 5.160 10 1.480 1.791 2.159 2.594 3.106 3.707 6.192 11 1,540 1.898 2.332 2.853 3,479 4.226 7.430 12 1.601 2.012 2.518 3,139 3.896 4.818 8.916 13 1.665 2.133 2.720 3.452 4,364 5.492 10.699 14 1.732 2.261 2.937 3.798 4.887 6.261 12.839 15 1.801 2.397 3.172 4,177 5.474 7.138 15.407 20 2.191 3.207 4.661 6.728 9,646 13.743 38.338 17.450 30 3.243 5.744 10.063 29.960 50.950 237.380 40 4.801 10.286 21.725 45.260 93,051 188.880 1,469.800 Table II Period 4% 6% 8% 10% 12% 14% 20% Future Value of a Series of 1 1.000 1.000 1.000 1.000 1.000 1,000 1.000 $1.00 Cash Flows (Ordinary Annulty) (1 2 2,040 2.060 2.080 2,100 2.120 2.140 2.220 3 3.122 3.184 3.246 3.310 3.374 3.440 3.640 4 4.247 4.375 4.506 4,641 4.779 4.921 5,368 6.105 5 5.416 5.637 5.867 6.353 6.610 7.442 6 6.633 6.975 7.336 7.716 8.115 8,536 9.930 7 7.898 8.394 8.923 9.487 10.089 10.730 12.916 10.637 8 9.214 9.898 11.436 12.300 13.233 16.499 16.085 9 10.583 11.491 12.488 13,580 14.776 20.799 10 14.487 12.006 13.181 15.938 17.549 19.337 25.959 11 13.486 14.972 16.646 18.531 20.655 23,045 32.150 12 15.026 16.870 18.977 21.385 24.133 27.271 39.580 13 16.627 18.882 21.495 24,523 28.029 32.089 48.497 14 18.292 21.015 24.215 27.976 32.393 37,581 59.196 15 20.024 23.276 27.152 31.773 37.280 43.842 72.035 45.762 91.025 20 29.778 36,778 57.276 75,052 186,690 79.058 241.330 356.790 30 56.085 113.283 164.496 1,181.900 40 95.026 154.762 259.057 442.597 767.090 1,342.000 7,343.900 96 Table III Present Value of $1.00 1 (1 10 % 28% 4% Period 6% 8% 12% 14% 16% 18% 20% 22% 24% 26% 30% 32% 1 .962 943 .926 .909 .893 .877 .862 847 833 820 .806 794 781 769 758 769 694 2 .925 890 857 826 .797 743 718 672 .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 7 760 665 583 .513 452 400 354 314 279 249 .222 198 178 .159 .143 731 627 .139 8 540 467 .404 351 305 266 233 204 .179 157 .123 .108 703 592 500 424 361 308 263 225 194 .167 144 125 108 .094 .082 10 676 558 463 386 322 270 227 191 .162 137 .116 .099 085 073 .062 350 11 .650 527 429 287 237 195 .162 .135 .112 .094 .079 066 056 .047 12 625 497 397 319 257 .208 168 137 .112 092 .076 ,062 052 043 .036 13 .601 469 368 .290 229 .182 145 116 093 075 .061 .050 040 .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 ,004 004 .001 30 308 174 .099 .057 .033 020 012 .007 003 .002 .001 40 208 097 ,046 022 011 005 003 .001 001 Table IV Present Value of Series of $1.00 Cash Flows 1 1 (1r Perlod 8% 4% 6% 10% 12% 14% 16% 18% 20% 22% 24% 25% 26% 28% 30% 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 1.566 2 1.886 1,833 1,783 1.736 1.690 1.647 1.605 1.528 1.492 1.457 1.440 1.424 1.392 1.361 3 2.775 2.673 2.577 2,487 2,402 2.322 2.246 2.174 2,106 2.042 1.981 1.952 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 2.320 2.241 2.166 4.452 4,212 3.993 3.791 3,605 3.433 3.274 3.127 2.991 2.864 2,745 2,689 2,635 2.532 2.436 6 5.242 4.917 4.623 4.355 4,111 3.889 3,685 3.498 3,326 3.167 3,020 2.951 2.885 2,759 2.643 7 6.002 5.582 5.206 4.868 4.564 4.288 4.039 3,812 3.605 3.416 3.242 3.161 3,083 2.937 2.802 8 6.733 6,210 5.747 5.335 4.968 4,639 4.344 4,078 3.837 3.619 3.421 3.329 3.241 3.076 2.925 7.435 6.802 6.247 5.759 5.328 4.946 4,607 4.303 4,031 3.786 3,566 3.463 3.366 3.184 3,019 10 8.111 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 11 8.760 7.887 7.139 6.495 5.938 5,453 5.029 4,656 4.327 4.035 3,776 3.656 3.544 3.335 3.147 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 11.118 9.712 55 7.606 6.811 6.142 5.575 5,092 4.675 1.315 4.001 3.859 3.726 3.483 3.268 20 13,590 11.470 9.818 8,514 7.469 6.623 5.929 5.353 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 8.244 7.105 6.234 5.548 4.997 4.544 4.166 3.999 3,846 3.571 3.333