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Your grandmother would like to share some of her fortune with you. She others to give you money under one of the following soorak (you get to chooney 1. $7.750 a year at the end of each of the next eight years 2. $49,950 (lump sum) now 3. $100.050 (ump sum) eight years from now Calculate the present value of each scenario using a 8% interest rate. Which scenario ylolds the highest present Value? Would your preference change you used a 12 interest rate? (Click the icon to view the present value annuity factor table) (Click the icon to view the present value factor tablo (Click the icon to view the future value annuity factor table.) (Click the icon to view the future value factor table) i Present Value of Annuity of $1 10% Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.9090.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.8292.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 Period 4 | 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.2123.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 Period 76.728 6.472 6.230 6.002 5.786 5.5825.206 4.8684.564 4.288 4.039 3.812 3.605 Period 87.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.6394.344 4.078 3.837 Period 9 8.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.1117.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.1945.6605.197 4.793 4.439 Period 13) 12.134 11.348 10.635 9.986 9.3948.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.873 6.097 5.467 4.948 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 5.517 4.979 Future Value of Annuity of $1 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 Period 4 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6,353 6.610 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 Period 7 7.214 7.4347.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 Period 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.48715.937 17.549 19.337 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16,645 18.531 20.655 23.045 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28 129 32.089 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 Period 15 16.09717.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 8.977 11.414 14.240 17519 21.321 9.442 12.142 15.327 19.086 23.521 28.755 34,931 42.219 50.818 60.965 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 25.733 30.850 36.786 43.672 51,660 115.380 249.214 530.312 146.628 186.688 342.603 471.981 790.948 1,181.882 Print Done i Present Value of $1 us Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.5920.500 0.424 0.361 0 308 0.263 0.225 0.194 Period 100.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.870 0.227 0.191 0.162 Period 110.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 130.879 0.773 0.681 0.601 0.530 0.4690.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 140.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 200.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 Period 30 0.742 0.552 0.412 0.308 0.231 0.1740.099 0.057 0.033 0.0200.012 0.007 0.004 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.0110.005 0.003 0.001 0.001 Print Done i Future Value of $1 1 Future value or $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 1.010 1.020 1.020 1.040 1.030 1.061 1.041 1.082 1.051 1.104 1.062 1.126 1.072 1.149 1.083 1.172 1.094 1.195 1.105 1.219 3% 4% 1.030 1.040 1.061 1.082 1.093 1.125 1.126 2.170 1.159 1.217 1.194 Period 6 Period 7 Period 8 Period 9 Period 10 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 4.322 5.743 10.06317.449 29.960 50.950 85.850 143.371 237.376 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Period 11 Period 12 Period 13 Period 14 Period 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 at Period 20 Period 25 Period 30 Period 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 el Print Done Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios y 1. $7,750 a year at the end of each of the next eight years 2. $49,950 (lump sum) now 3. $100,050 (lump sum) eight years from now Calculate the present value of each scenario using a 6% interest rate. Which scenario yields the highest present value? Would your prefer (Click the icon to view the present value annuity factor table.) (Click the icon to view the present value factor table.) (Click the icon to view the future value annuity factor table.) Click the icon to view the future value factor table.) Using a 6% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar.) Present value of Scenario 1 S 48,128 Present value of Scenario 2 $ 49,950 Present value of Scenario 3 $ 62,731 Which scenario yields the highest present value? Scenario 3 appears to be the best option. Based on a 6% interest rate, its present value is the highest Using a 12% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar) $ 38,502 Present value of Scenario 1 Present value of Scenario 2 49,950