Attempts: Average: 072 13. Present value You just found out that you had a very eccentric uncle who lived quietly in Staten Island. He left you $35,000. You just saw the movie The Bucket List and have decided that you want to put some money away so that in 10 years, you can start fulfilling items on that list. * With whatever money you have left, you'll pay off some bills. You have found an investment instrument that will pay 5% Interest annually. Use the scenarios along with the following factor table data to answer each of the questions. Note that the complete Future Value and Future Value Annuity tables (as well as the Present Value and Present Value Annuity tables) are located in the appendix in your text. Factor Tables 26 .746 Table of Present Value Factors Interest Rate Year 5% 7% 8% 9% 6 .837 .666 .630 .596 8 .789 -582 .540 .502 10 .744 .614 .508 .463 .422 12 .701 .557 .444 .397 .356 15 .642 .362 .315 .275 20 .554 .215 .178 .677 .481 377 258 Table of Present Value Annuity Factors 9 P O N etv 4 W a 5 Table of Present Value Annuity Factors Interest Rate Year 3% 7% 8% 9% 6 5.417 5.076 4.767 4.623 4.486 8 7.020 5.971 5.747 5.535 10 8.530 7.722 7.024 6.710 6.418 12 9.954 8.863 7.943 7.536 7.161 15 11.938 10.380 9.106 8.560 8.061 20 14.878 12.462 10.594 9.818 9.129 6.463 * 2 Present Value of a Single Amount What is the amount you should invest today to have $40,250 in 10 years? Present Value of an Annuity $4,025 Now the 10 years have passed, and you are ready to pull some money out $24,714 H. You talked to your investment advisor who says you can take this money and move it into a fund that will earn 7% interest annually. And $5,212 pn tackling most of your bucket list items over the next 12 years. What is the annual amount you will have to spend for your bucket list activities? Grade It Now Save & Continue atv AW P 0 N LU Value Annuity Factors Interest Rate 5% 7% 8% 9% Year 3% 6 5.417 5.076 4.623 4.486 4.767 5.971 8 7.020 6.463 5.747 5.535 * 10 8.530 7.722 7.024 6.710 6.418 12 9.954 8.863 7.943 7.536 7.161 15 11.938 10.380 9.108 8.560 8.061 12 20 14.878 12.462 10.594 9.818 9.129 Present Value of a Single Amount What is the amount you should invest today to have $40,250 in 10 years? B Present Value of an Annuity Now the 10 years have passed, and you are ready to pull some money out of your fund. You talked to your investment advisor who says you can take this money and move it into a fund that will earn 7% Interest annually. And you envision tackling most of your bucket list items over the next 12 years. What is the annual amount you will have to spend for your bucket list activities? Grade It Now Save & Continue tv AW 0 MacBook Air Table of Present Value Annuity Factors Interest Rate Year 3% 5% 7% 8% 9% 6 5.417 5.076 4.767 4.623 4.486 8 7.020 6.463 5.971 5.747 5.535 10 8.530 7.722 7.024 6.710 6.418 12 9.954 8.863 7.943 7.536 7.161 15 11.938 10.380 9.108 8.560 8.061 20 14.878 12.462 10.594 9.818 9.129 Present Value of a Single Amount What is the amount you should invest today to have $40, 250 in 10 years? Present Value of an Annuity $5,067 Now the 10 years have passed, and you are ready to pull some money out of you talked to your investment advisor who says you can take this money and move it into a fund that will earn 7% interest annually. And you $5,212 skling most of your bucket list items over the next 12 years. $4,025 What is the annual amount you will have to spend for your bucket list activities? Grade It Now Save & Continue atv AW 5 Table of Present Value Annuity Factors Interest Rate Year 3% 7% 8% 9% 6 5.417 5.076 4.767 4.623 4.486 8 7.020 6.463 5.971 5.747 5.535 10 8.530 7.722 7.024 6.710 6.418 12 9.954 8.863 7.943 7.536 7.161 15 11.938 10.380 9.108 8.560 8.061 20 14.878 12.462 10.594 9.818 9.129 + Present Value of a Single Amount What is the amount you should invest today to have $40,250 in 10 years? $4,025 Present Value of an Annuity Now the 10 years have passed, and you are ready to pull some money out $ 24,714 You talked to your investment advisor who says you can take this money and move it into a fund that will earn 7% interest annually. And $5,212 pn tackling most of your bucket list items over the next 12 years What is the annual amount you will have to spend for your bucket list activities? Grade It Now Save & Continue atv AW P O N