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Posted on Jul 27, 2024

eBook Problem 7-15 You are offered $1,100 after six years (Offer 1) or $150 a year for six years (Offer 2). If you can earn

eBook Problem 7-15 You are offered $1,100 after six years (Offer 1) or $150 a year for six years (Offer 2). If you can earn 6 percent on your funds, calculate the future values of both payments. Use Appendix C to answer the question. Round your answers to the nearest dollar. FV (Offer 1): $ 1166 FV (Offer 2): $ 1,046 which offer will you accept? offart 1 If you can earn 16 percent on your funds, calculate the future values of both payments. Use Appendix c to answer the question. Round your answers to the nearest dollar. FV (Offer 1): $ 1276 FV (offer 27: $ 1,347 Which offer will you accept, if you can earn 16 percent on your funds? nffor Why are your answers different? The choices are different as the higher interest rate Frunze Incorrect; Correct; Correct; Incorrect: Correct; Correct; Correct; Partially Correct Interest Factors for the Future Value of an Annuity of One Dollar Time Period year 79 8% 1.000 1151 - monos 1.000 2010 3.030 4.060 5.101 1.000 2020 3.060 4.122 5.204 1.000 2.030 3091 4.184 5.309 1.000 2.040 3.122 4.246 5.416 1.000 1.000 2.060 2.070 3.184 3.215 4.375 54.440 5.637 5.751 1.000 2.080 3.246 4.506 5.867 9% 1.000 2.090 3.278 4.573 5.985 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.770 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.067 6.877 20% 1.000 2.200 3.640 5.368 7.442 4.310 5.526 7 6.468 6.633 7.662 7.898 8.8929.214 10.159 10.583 11.464 12.006 7.214 8.286 .369 10.462 6.802 8.142 9.549 11.027 12.578 7.434 8.583 9.755 10.950 6.975 8.394 9.897 11.491 13.181 7.153 8.654 10.260 11.978 13.816 7.336 8923 10.637 12.488 14.487 7.523 9.200 11.028 13.021 15.193 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.978 11.413 14.240 17.518 21.321 9 9.930 12.915 16.499 20.798 25.958 9 10 11 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15 974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 0.024 14.207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.051 23.276 15.784 17.888 20.141 22.550 25.129 16.645 17.560 18.531 18.977 20.141 21.384 21.49522.953 24.523 24 215 26.019 27975 27.152 29.361 31.772 20.655 24.138 28.029 32.393 37.280 14 23.044 27.271 32.089 37.581 43.842 25.732 32.150 30.850 39.580 36.786 48.496 43.672 59.195 51.65972.035 16 17 18 17.258 18.430 19.615 20.811 22.019 18.639 20.012 21.412 22.841 24 297 20.157 21.762 23.414 25.117 26.870 21.825 23.698 25.645 27.671 29.778 23.657 25.673 25 840 28.213 28 132 30 906 3053933.760 33.066 36.786 27.888 30.840 33.999 37.379 40.995 30.324 33.750 37.450 41.446 45.762 33,003 36.974 41.301 46.018 51.160 35.950 40.545 45.599 51.159 57.275 42.753 48.884 55.750 63.440 72.052 50.980 59.118 68.934 78.969 91.025 60.925 87.442 71.673 105.93 84 140 128.11 98.603 154.74 115.370 186.68 20 28.243 32.03036.459 41.646 47.72754.865 63.249 73.106 84.701 98.347 133.33 181.87 249.210 471.98 30 34.785 40.568 47.575 56.085 66.439 79.058 94.461 113.283 136.308 164.494 241.333356.878 530.3101181.8 Interest Factors for the Future Value of an Annuity of One Dollar Time Period leg 1% 1.000 2010 3.030 4.060 5.101 2.070 1.000 2.020 3.060 4.122 5.204 1.000 2.030 3.091 4.184 5.309 1.000 2.040 3.122 4.246 5.416 1.000 2.050 3.152 4.310 5.526 2.060 3.184 4.375 1.000 2.080 3.246 4.506 5.867 1.000 2.090 3.278 4.573 1.000 2.100 3.310 4.641 1.000 2.120 3.374 4.770 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.067 6.877 20% 1.000 2.200 3.640 5.368 7.442 4.440 5.751 6.802 8.142 6.975 8.394 7.214 8.286 9.369 10.462 7434 7.662 8.5838.892 9.755 10.159 10.950 11.464 7.898 9.214 10.583 12.006 7.153 8.654 10.260 11.978 13.816 7.336 8.923 10.637 12.488 14.487 7.523 9.200 11.028 13.021 15.193 7.7168 .115 9.487 10.089 11.436 12.300 13.579 14.776 15.937 17.549 8.536 10.730 13.233 16.085 19.337 8.978 11.413 14.240 17.518 21.321 9.930 12.915 16,499 20.798 25.958 10 11.027 12.578 11.491 13.181 27.271 13 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 14,207 15.917 17.713 19.599 21.579 14.972 15.784 16.645 16.870 17.888 18.977 18.882 20.14121.495 21.05122.550 24.215 23.276 25.129 27.152 17.560 18.531 20.1412 1.384 22.953 24.523 26.019 27.975 29.361 31.772 24.138 28.029 32.393 37.280 25.732 32.150 30.850 39.580 36.786 48.496 43.672 59.195 51.65972035 37.581 43.842 18 17.258 18.430 19.615 20.811 22 019 18.639 20.012 21.412 22.841 24 297 20.157 21.762 23.414 25.117 26.870 21.825 23.698 25.645 27.671 29.778 23.657 25.840 28.132 30.539 33.066 25.673 28.213 30.906 33.760 36.786 27.888 30.840 33.999 37.379 40.995 30.324 33.750 37.450 41.446 45.762 33,003 36.974 41.301 46.018 51.160 35 950 40.545 45.599 51.159 57.275 42.753 48.884 55.750 63.440 72.052 50.980 59.118 68 934 78.969 91.025 60.925 87.442 71.673 10593 84.140 128.11 98.603 154.74 115.370 186.68 19 25 28.243 32.03036.459 41.646 47.72754865 63.24973.106 84.701 98.347 133.33 181.87 249.210 471.98 30 34.785 40.568 47575 56.085 66.439 79.058 94461 113.283 136.308 164.494 241.333356.878 530.3101181.8 Interest Factors for the Future Value of an Annuity of One Dollar Period (e. year) 1.000 1.000 2.010 3.020 4060 5.101 1.000 2.020 3060 4122 5.204 1.000 1.000 2.030 2.040 3 0912122 4.184 4.246 5.309 5 .416 1.000 2.050 3.152 4.310 5.526 7 1.000 2.070 3.215 4.440 5.751 8% 1.000 2.080 3.246 4.506 5.867 9% 1.000 2.090 3278 4.573 5.985 12% 1.000 1.000 2.100 2.120 3.310 3.374 4.641 4.770 6.1056.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.067 6.877 20% 1.000 2.200 3.640 5.368 7442 5.637 8 6.152 7214 8.286 9.369 10.462 7,434 8.583 9.755 10.950 6.802 .142 9.549 11.027 12.578 7662 8.892 10.159 11.464 6.975 8.394 9.897 11.491 13.1 7898 9.214 10.583 12.006 7.153 8.654 10.260 11.978 13.816 7.336 8.923 10.637 12.488 14.487 7523 9.200 11.028 13.021 15.193 7.716 9.487 11.436 13.579 15.937 8.978 11.413 14.240 8.115 10.089 12.300 14.776 17.549 9.930 12.915 16.499 8 .536 10.730 13.233 16.085 19.337 21.321 25.958 11.567 12.683 13.809 14 947 16.097 12.16912.808 13.412 14.192 14.680 15618 15.974 17.086 17.293 18.599 13.486 15.026 16.627 18.292 20.024 14 207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.051 23.276 15.784 17.888 20.141 22.550 25.129 16.645 18.977 21.495 24.215 27.152 17.560 20.141 22953 26.019 29.361 18.531 21.384 24.523 27975 31.772 20.655 24.138 28.029 32.393 37.280 23.044 27.271 32.089 37.581 43.842 25.732 32.150 30.850 39.580 36.786 48.496 43.672 59.195 51.65972.035 17.258 18.639 18.430 20.012 19.615 21.412 20 81122 41 22.019 24 297 20.157 21.762 23 414 25 117 26 870 21.825 23.698 25.645 27671 29.778 23.657 25.840 28.132 30539 33.066 25.673 28.213 30.906 33 760 36.786 27.888 30.840 33.999 37 379 40.995 30,324 33.750 37.450 41.446 45.762 33.003 36.974 41.301 46 018 51.160 19 35.950 40.545 45.599 51.150 57.275 42.753 48.884 55.750 62400 72.052 50.980 60.925 87.442 59.118 71.673 105.93 68 934 84140 128.11 78 069 060215474 91.025 115.370 186.68 25 28.243 41.646 63.249 73.106 32.030 36.459 40.568 47.575 181.87 249.210 47 727 54.865 66.43979.058 471.98 30 34.785 56,085 84 701 98.347 133.33 136 308 164.494 241.333 94.461 113.283 356.878 530.3101181.8 Interest Factors for the Future value of an Annuity of One Dollar Time Period leg year) 1 16% 1.000 1.000 2.010 3.030 4,060 5.101 1.000 2.020 3.060 4.122 5.204 1.000 2030 3.091 4.184 5.309 4% 1.000 2040 3.122 4.246 5.416 5% 1.000 2.050 3.152 4.310 5.526 6% 1.000 2.060 3.184 4.375 5.637 7% 1.000 1.000 1.000 2.070 2.080 2.090 3.215 3.246 3.278 4.573 5.7515.8675.985 12% 1.000 2.120 3,374 4.770 6.353 14% 1.000 2.140 3.440 4.921 6.610 20% 1.000 2.200 3.640 5.368 7442 1.000 2.160 3.506 .067 6.877 3.310 4.641 6.105 5 8 6.152 7.214 8.286 9.369 10.462 6.308 2434 8.583 9.755 10.950 6.468 7662 8.892 10.159 11.464 7898 9.214 10.583 12.006 8.142 9.549 11.027 12.578 7.153 .394 8.654 9.897 10.260 11.491 11978 13.18113.816 8922 10.637 12.488 14.487 7.523 9200 11.028 13.021 15.193 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.978 9930 11.413 12915 14.240 16.499 17.518 20.798 21.321 25.958 9 10 11 11.567 12.683 13 809 14 947 16.097 12.169 13.412 14.680 15 974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 14.207 15.017 17.713 19.599 21.579 14.972 16.870 18.882 21.051 23.276 15.784 17.888 20.141 22.550 25.129 16.645 18977 21.495 24.215 17.560 20.141 22.953 26.019 29.361 18.531 21.384 24.523 27.975 31.772 20.655 24.138 28.029 32.393 37.280 23.044 27.271 32.089 37.581 43.842 25.732 32.150 30.850 39.580 36.786 48.496 43.672 59.195 51.65972.035 15 16 17 18 19 20 17.258 18.639 18.430 20.012 19.615 21.412 20.811 22.841 22.01924.297 20.157 21.762 23.414 25.117 26.870 21.825 23.698 25.645 27.671 29.778 23.657 25.840 28.132 30.539 33,066 25.673 28.213 30.906 33.760 36.786 27.888 30.840 33.999 37.379 40.995 30.324 33.750 37.450 33.003 36.974 41.301 46.018 51.160 35.950 40.545 45.599 51.159 57.275 42.753 48.884 55.750 63.440 72.052 50.980 59.118 68.934 78.969 91.025 60.925 87.442 71.673 105.93 84.140 128.11 98.603 154.74 115.370 186.68 45.762 25 30 28.243 34.785 32.030 40.568 36.459 47575 41.646 56,085 47.727 66.439 54.865 79058 63.249 94.061 73.106 84.701 98.347 133.33 181.87 249.210 471.98 113.283 136,308 164.494 241.333356.878 530,310 1181.8 y u