Carol wants to take the next five years off work to travel around the world. She estimates her annual cash needs at $28,000 (if she needs more, she will work odd jobs). Carol believes she can invest her savings at 12% until she depletes her funds. (Click the icon to view Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements Requirement 1. How much money does Carol need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 12% interest rate, Carol needs $ Requirement 2. After speaking with a number of banks, Carol learns she will only be able to invest her funds at 6%. How much does she need now to fund her travels? (Round your answer to the nearest whole dollar.) With a 6% interest rate, Carol would need S If Carol's savings are earning a lower interest rate (6%), she will need to save to be able to with draw $28,000 per year less more Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.971 0.909 0.862 0.847 1 0.990 0.980 0.962 0.952 0.943 0.935 0.926 0.917 0.893 0.877 0.870 0.833 0.961 0.907 0.873 0.797 0.769 0.756 2 0.980 0.943 0.925 0.890 0.857 0.842 0.826 0.743 0.718 0.694 0.816 0.712 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.772 0.751 0.675 0.658 0.641 0.609 0.579 0.961 0.855 0.823 0.708 0.552 4 0.924 0.888 0.792 0.763 0.735 0.683 0.636 0.592 0.572 0.516 0.482 0.951 0.863 0.822 0.784 0.747 0.519 0.497 0.476 0.906 0.713 0.681 0.650 0.621 0.567 0.437 0.402 0.596 0.547 0.705 0.456 0.400 0.335 6 0.942 0.888 0.837 0.790 0.746 0.666 0.630 0.564 0.507 0.432 0.410 0.370 0.760 0.731 0.711 0.665 0.623 0.583 0.279 7 0.933 0.871 0.813 0.513 0.452 0.376 0.354 0.314 0.582 0.404 0.351 0.327 0.233 8 0.923 0.853 0.789 0.677 0.627 0.540 0.502 0.467 0.305 0.266 0.424 0.284 0.194 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.361 0.308 0.263 0.225 0.820 0.676 0.322 10 0.905 0.744 0.614 0.558 0.508 0.463 0.422 0.386 0.270 0.247 0.227 0.191 0.162 0.896 0.804 0.722 0.527 0.237 0.215 11 0.650 0.585 0.475 0.429 0.388 0.350 0.287 0.195 0.162 0.135 0.397 0.319 0.187 0.137 0.112 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.356 0.257 0.208 0.168 0.601 0.163 0.116 0.093 13 0.879 0.773 0.681 0.530 0.469 0.415 0.368 0.326 0.299 0.290 0.229 0.182 0.145 0.14 0.340 0.315 0.870 0.661 0.442 0.078 14 0.758 0.577 0.505 0.388 0.263 0.205 0.160 0.125 0.099 0.861 0.743 0.555 0.481 0.362 0.275 0.123 15 0.642 0.417 0.239 0.183 0.140 0.108 0.084 0.065 0.853 0.394 0.054 16 0.728 0.623 0.534 0.458 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.513 0.371 0.198 0.108 0.093 0.080 0.060 0.051 17 0.844 0.714 0.605 0.436 0.317 0.270 0.231 0.146 0.045 0.350 0.296 0.180 0.130 0.081 0.038 18 0.836 0.700 0.587 0.494 0.416 0.250 0.212 0.095 0.069 0.331 0.312 19 0.828 0.686 0.570 0.475 0.456 0.396 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 0.258 0.215 0.178 0.073 0.061 0.037 20 0.820 0.673 0.554 0.377 0.149 0.104 0.051 0.026 0.538 0.359 0.342 0.294 0.164 0.135 0.053 0.022 21 0.811 0.660 0.439 0.242 0.199 0.093 0.064 0.044 0.031 0.803 0.647 0.278 0.226 0.083 0.056 0.038 0.026 22 0.522 0.422 0.184 0.150 0.123 0.046 0.018 0.015 0.795 0.634 0.211 0.170 0049 0.033 0.022 23 0.507 0.406 0.326 0.262 0.138 0.112 0.074 0.040 0.390 0.126 0.019 24 0.788 0.622 0.492 0.310 0.247 0.197 0.158 0.102 0.066 0.043 0.035 0.028 0.013 0.780 0.375 0.295 0.233 0.146 25 0.610 0.478 0.184 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 0.772 0.172 0.026 26 0.598 0.464 0.361 0.281 0.220 0.135 0.106 0.084 0.053 0.033 0.021 0.014 0.009 0.098 0.090 0.586 0.268 0.076 0.069 0.063 0.023 0.011 0.007 27 0.764 0.757 0.450 0.347 0.207 0.161 0.125 0.047 0.029 0.018 0.574 0.150 0.116 0.026 0.020 0.010 0.008 0.006 28 0.437 0.333 0.255 0.196 0.042 0.016 0.321 0.107 0.022 0.005 29 0.749 0.563 0.424 0.243 0.185 0.141 0.082 0.037 0.017 0.014 0.174 0.131 0.099 0.075 0.033 0.015 0.007 0.004 30 0.742 0.552 0.412 0.308 0.231 0.057 0.020 0.012 0.672 0.307 0.097 0.001 40 0.453 0.208 0.142 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.003 0.001 0.228 0.001 50 0.608 0.372 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 ON00 O Present Value of Ordinary Annuity of $1 Periods 12% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 14% 15% 16% 18% 20% 0.862 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.847 0.833 1.970 1.913 1.886 1.859 1.783 1.690 1.626 1.528 2 1.942 1.833 1.808 1.759 1.736 1.647 1.605 1.566 2.106 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 3.902 3.630 3.037 2.690 2.589 4 3.808 3.717 3.546 3.465 3.387 3.312 3.240 3.170 2.914 2.855 2.798 4.853 4,713 4,212 3.791 3.433 3.352 3.127 5 4.580 4.452 4.329 4.100 3.993 3.890 3.605 3.274 2.991 5.601 5.417 5.076 4,917 4.767 4.486 4,355 3.326 6 5.795 5.242 4.623 4.111 3.889 3.784 3.685 3.498 6.728 6472 5.786 5.206 4,288 4.160 3.812 7 6.230 6.002 5.582 5.389 5.033 4.868 4.564 4.039 3.605 7,652 7.325 7.020 4.487 4.078 8 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4,344 3.837 8.566 7,435 7.108 6.515 5.995 5.759 4.946 4.772 4.303 8.162 7.786 6.802 6.247 5.328 4.607 4.031 9.471 8.111 7,722 7.360 6.710 6.418 5.216 4,192 10 8.983 8.530 7.024 6.145 5.650 5.019 4.833 4.494 9.787 8.306 6.805 5.234 5.029 4.656 4.327 11 10.368 9.253 8.760 7.887 7.499 7.139 6.495 5.938 5.453 11.255 12 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.421 5.197 4.793 4.439 11.348 10.635 12.106 11.296 10.563 9.986 9.394 7.103 13 12.134 8.853 8.358 7.904 7.487 6.424 5.842 5.583 5.342 4.910 4.533 13.004 5.008 14 9.899 9.295 8.745 8.244 7.786 7.367 7,606 6.628 6.002 5.724 5.468 4.611 13.865 12.849 11.938 8.061 15 11.118 10.380 9.712 9.108 8.559 6.811 6.142 5.847 5.575 5.092 4.675 14.718 13.578 12.561 15.562 14.292 13.166 12.166 11.274 10.477 16.398 14.992 13.754 12.659 11.690 17.226 15.678 14.324 13.134 12.085 11.158 18.046 16.351 10.838 10.106 5.162 4.730 16 11.652 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 7.120 4,775 17 9.763 9.122 8.544 8.022 6.373 6.047 5.749 5.222 4,812 18 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 6.550 6.198 5.316 4.844 19 10.336 9.604 8.950 8.365 7.366 5.877 12.462 11.470 9.818 20 14.877 13.590 10.594 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 12.821 11.764 13.163 12.042 14.857 13.489 12.303 18.914 16.936 15.247 13.799 12.550 11.469 19.523 17.413 15.622 14.094 12.783 11.654 15.415 14.029 10.836 10.017 18.857 17.011 5.973 21 9.292 8.649 7.562 6.687 6.312 5.384 4.891 19.660 17.658 20.456 18.292 16.444 15.937 9.442 7,645 22 14.451 11.061 10.201 8.772 6.743 6.359 6.011 5.410 4.909 11.272 10.371 6.399 5.432 4,925 23 9.580 8.883 7.718 6.792 6.044 24 21.243 10.529 9.707 8.985 7.784 6.835 6.434 6.073 5.451 4.937 22.023 9.823 9.077 6.873 5.467 25 10.675 7.843 6.464 6.097 4.948 22.795 20.121 17.877 23.560 20.707 18.327 16.330 24.316 21.281 18.764 16.663 25.066 21.844 19.188 16.984 25.808 22.396 19.600 14.375 13.003 14.643 13.211 14.898 13.406 15.141 13.591 17.292 15.372 13.765 7.896 6.906 6.118 5.480 26 15.983 11.826 10.810 9.929 9.161 6.491 4.956 5.492 4.964 27 11.987 10.935 10.027 9.237 7.943 6.935 6.514 6.136 12.137 11.051 12.278 11.158 6.961 6.534 28 10.116 9.307 7.984 6.152 5.502 4.970 8.022 29 10.198 9.370 6.983 6.551 6.166 5.510 4.975 10.274 7,003 30 12.409 11.258 9.427 8.055 6.566 6.177 5.517 4.979 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 7.105 4.997 40 10.757 9.779 8.244 6.642 6.233 5.548 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 6.661 5.554 50 9.915 8.304 7.133 6.246 4.999 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.150 1.323 1.521 1.030 1.140 1.010 1.020 1.040 1.082 1.125 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.040 1.061 1.145 1.254 1.300 2 1.020 1.103 1.124 1.166 1.188 1.210 1.030 1.482 1.061 1.093 1.158 1.191 1.225 1.260 1.295 1.412 1.331 1.405 1.689 1.925 1.04 1.170 4 1.082 1.126 1.216 1.262 1.311 1.360 1.464 1.574 1.749 1.403 1.762 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.539 1.611 2.011 1.062 1.677 2.195 6 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.772 1.974 2.313 1.407 2.211 7 1.072 1.149 1.230 1.316 1.504 1.606 1.714 1.828 1.949 2.502 2.660 1.369 1.718 2.853 8 1.083 1.172 1.267 1.477 1.594 1.851 1.993 2.144 2.476 3.059 1.689 3.252 9 1.094 1.195 1.305 1.423 1.551 1.838 1.999 2.172 2.358 2.773 3.518 4,046 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 1.243 2.332 4,226 11 1.116 1.384 1.539 1.710 1.898 2.105 2.580 2.853 3.479 4.652 5.350 2.012 2.252 2.518 3.138 12 1.127 1.268 1.426 1.601 1.796 2.813 3.896 4.818 1.138 6.153 13 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 2.937 7.076 14 1.149 1.319 1.513 1.732 1.980 2.261 2.579 3.342 3.798 4.887 6.261 15 1.161 1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.642 4.177 5.474 7.138 8.137 1.373 2.183 2.540 3.426 4,595 6.130 16 1.173 1.605 1.873 2.952 3.970 8.137 9.358 1.184 3.700 6.866 17 1.400 1.653 1.948 2.292 2.693 3.159 4.328 5.054 9.276 10.76 2407 2.854 3.996 7,690 18 1.196 1.428 1.702 2.026 3.380 4.717 5.560 10.58 12.38 1.754 1.806 3.026 3.617 4.316 8.613 19 1.208 1.457 2.107 2.527 5.142 6.116 12.06 14.23 4.661 5.604 13.74 20 1.220 1.486 2.191 2.653 3.207 3.870 6.727 9.646 16.37 1.232 1.516 2.279 5.034 6.109 7.400 18.82 21 1.860 2.786 3.400 4.141 10.80 15.67 1.546 2.925 5.437 17.86 22 1.245 1.916 2.370 3.604 4.430 6.659 8.140 12.10 21.64 24.89 28.63 1.257 1.974 7,258 23 1.577 2.465 3.072 3.820 4.741 5.871 8.954 13.55 20.36 1.270 4,049 5.072 24 1.608 2.033 2.563 3.225 6.341 7.911 9.850 15.18 23.21 1.282 2.094 25 1.641 2.666 3.386 4.292 5.427 6.848 8.623 10.83 17.00 26.46 32.92 3.556 4.549 5.807 7.396 11.92 37.86 26 1.295 1.673 2.157 2.772 9.399 19.04 30.17 3.733 6.214 7.988 27 1.308 1.707 2.221 2.883 4.822 10.25 13.11 21.32 34.39 43.54 39.20 2.288 3.920 6.649 14.42 28 1.321 1.741 2.999 5.112 8.627 11.17 23.88 50.07 1.335 1.776 1.811 3.119 9.317 29 2.357 4.116 5.418 7.114 12.17 15.86 26.75 44.69 57.58 3.243 5.743 7.612 10.06 13.27 30 1.348 2427 4,322 17.45 29.96 50.95 66.21 3.262 21.72 45.26 267.9 40 1.489 2.208 4.801 7.040 10.29 14.97 31.41 93.05 188.9 1.645 18.42 74.36 700.2 1,084 50 2.692 4.384 7.107 11.47 29.46 46.90 117.4 289.0 Future Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.000 1,000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 3.184 3.246 3.440 3.473 3.030 3.060 3.091 3.122 3.153 3.215 3.278 3.310 3.374 4.64 4,310 4.375 4.440 4,506 4,573 4.921 4.060 5.101 4.122 4.184 4.246 4,779 4.993 6.742 5.204 5.526 5.867 6.610 5.309 5.416 5.637 5.751 5.985 6.105 6.353 8.115 6 6.152 6.308 6.468 6.633 6.802 6.975 7.153 7.336 7.523 7.716 8.536 8.754 8.923 7 7.214 7.434 7.662 7.898 8.142 8.394 8.654 9.200 9.487 10.09 10.73 11.07 8.892 9.897 11.44 12.30 13.73 8 8.286 8.583 9.214 9.549 10.260 10.64 11.03 13.23 11.98 9.369 9.755 10.16 10.58 11.03 11.49 12.49 13.02 13.58 14.78 16.09 16.79 10.95 13.18 19.34 20.30 10 10.46 11.46 12.01 12.58 13.82 14.49 15.19 15.94 17.55 15.78 11 11.57 12.17 12.81 13.49 14.21 14.97 16.65 17.56 18.53 20.65 23.04 24.35 12.68 14.19 15.92 21.38 29.00 12 13.41 15.03 16.87 17.89 18.98 20.14 24.13 27.27 17.71 20.14 13 13.81 14.68 15.62 16.63 18.88 21.50 22.95 24.52 28.03 32.09 34.35 40.50 17.09 18.29 21.02 22.55 24.21 14 14.95 15.97 19.60 26.02 27.98 32.39 37.58 25.13 47.58 15 16.10 17.29 18.60 20.02 21.58 23.28 27.15 29.36 31.77 37.28 43.84 20.16 25.67 33.00 50.98 16 17.26 18.64 21.82 23.66 27.89 30.32 35.95 42.75 55.72 21.76 25.84 28.21 33.75 59.12 17 18.43 20.01 23.70 30.84 36.97 40.54 48.88 65.08 23.41 30.91 41.30 45.60 55.75 75.84 18 19.61 21.41 25.65 27.67 28.13 34.00 37.45 68.39 25.12 46.02 51.16 78.97 19 20.81 22.84 30.54 33.76 37.38 41.45 63.44 88.21 22.02 24.30 26.87 29.78 33.07 45.76 51.16 57.28 91.02 20 36.79 41.00 72.05 102.4 64.00 81.70 118.8 21 23.24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 104.8 27.30 49.01 62.87 71.40 137.6 22 24.47 30.54 34.25 38.51 43.39 55.46 92.50 120.4 25.72 32.45 34.43 36.62 69.53 79.54 138.3 23 28.85 41.43 47.00 53.44 60.89 104.6 159.3 26.97 66.76 118.2 158.7 24 30.42 39.08 44.50 50.82 58.18 76.79 88.50 184.2 28.24 47,73 63.25 73.11 98.35 133.3 25 32.03 36.46 41.65 54.86 84.70 181.9 212.8 38.55 44.31 26 29.53 33.67 51.11 59.16 68.68 79.95 93.32 109.2 150.3 208.3 245.7 30.82 35.34 37,05 38.79 40.57 40.71 63.71 102.7 283.6 27 47.08 54.67 74.48 87.35 121.1 169.4 238.5 32.13 49.97 58.40 68.53 95.34 190.7 327.1 28 42.93 80.70 113.0 134.2 272.9 87.35 124.1 214.6 29 33.45 45.22 52.97 62.32 73.64 104.0 148.6 312.1 377.2 34.78 94.46 113.3 241.3 356.8 30 47.58 56.08 66.44 79.06 136.3 164.5 434.7 95.03 154.8 199.6 40 48.89 60.40 75.40 120.8 259.1 337.9 442.6 767.1 1,342 1,779 4,995 50 64.46 84.58 112.8 152.7 209.3 290.3 406.5 573.8 815.1 1,164 2,400 7,218 o st ONC0 O