EM11-22 (similar to) Question Help Sandra wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $34,000 (if she needs more, she will work odd jobs). Sandra 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 Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value 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 Sandra need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 12% interest rate, Sandra needs i - x Requirements 1. How much money does Sandra need now to fund her travels? 2. After speaking with a number of banks, Sandra learns she will only be able to invest her funds at 6%. How much does she need now to fund her travels? Print Done Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 0.990 0.980 0.971 0.962 0.980 0.961 0.943 0.925 0.971 0.942 0.915 0.889 0.961 0.924 0.888 0.855 0.951 0.906 0.863 0.822 5% 0.952 0.907 0.864 0.823 0.784 6% 0.943 0.890 0.840 0.792 0.747 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 10% 12% 0.917 0.909 0.893 0.842 0.826 0.797 0.772 0.751 0.712 0.708 0.683 0.636 0.650 0.621 0.567 14% 0.877 0.769 0.675 0.592 0.519 15% 16% 18% 20% 0.870 0.862 0.847 0.833 0.756 0.743 0.718 0.694 0.658 0.641 0.609 0.579 0.572 0.552 0.516 0.482 0.497 0.476 0.437 0.402 Period 6 Period 7 Period 8 Period 9 Period 10 0.942 0.888 0.837 0.790 0.933 0.871 0.813 0.760 0.923 0.853 0.789 0.731 0.914 0.837 0.766 0.703 0.905 0.820 0.744 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.666 0.623 0.582 0.544 0.508 0.630 0.583 0.540 0.500 0.463 0.596 0.564 0.507 0.547 0.513 0.452 0.502 0.467 0.404 0.460 0.424 0.361 0.422 0.386 0.322 0.456 0.432 0.410 0.370 0.335 0.400 0.376 0.354 0.314 0.279 0.351 0.327 0.305 0.266 0.233 0.308 0.284 0.263 0.225 0.194 0.270 0.247 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 Period 12 0.887 0.788 0.701 0.625 Period 13 0.879 0.773 0.681 0.601 Period 14 0.870 0.758 0.661 0.577 Period 15 0.861 0.743 0.642 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.475 0.444 0.415 0.388 0.362 0.429 0.397 0.368 0.340 0.315 0.388 0.350 0.287 0.356 0.319 0.257 0.326 0.290 0.229 0.299 0.263 0.205 0.275 0.239 0.183 0.237 0.208 0.182 0.160 0.140 0.215 0.195 0.187 0.168 0.163 0.145 0.141 0.125 0.123 0.108 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 Period 16 0.853 0.7280.623 0.534 Period 17 0.844 0.714 0.605 0.513 Period 18 0.836 0.700 0.587 0.494 Period 19 0.828 0.686 0.570 0.475 Period 20 0.820 0.673 0.554 0.456 0.458 0.436 0.416 0.396 0.377 0.394 0.371 0.350 0.331 0.312 0.339 0.317 0.296 0.277 0.258 0.292 0.270 0.250 0.232 0.215 0.252 0.218 0.163 0.231 0.198 0.146 0.212 0.180 0.130 0.194 0.164 0.116 0.178 0.149 0.104 0.123 0.107 0.093 0.071 0.054 0.108 0.093 0.080 0.060 0.045 0.095 0.081 0.069 0.051 0.038 0.083 0.070 0.060 0.043 0.031 0.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 Period 22 0.803 0.647 0.522 0.422 Period 23 0.795 0.634 0.507 0.406 Period 24 0.788 0.622 0.492 0.390 Deriod 25 0 780 n10 n 178 0 275 0.359 0.342 0.326 0.310 205 0.294 0.278 0.262 0.247 0.242 0.226 0.211 0.197 181 0.199 0.184 0.170 0.158 0.164 0.135 0.093 0.150 0.123 0.083 0.138 0.112 0.074 0.126 0.102 0.066 116 nna2 0050 0.064 0.056 0.049 0.043 0.053 0.046 0.040 0.035 0.044 0.038 0.033 0.028 021 0.031 0.022 0.026 0.018 0.022 0.015 0.019 0.013 0016 n10 0 ? 116 nn28 20 Present Value of Ordinary Annuity of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 0.990 0.980 1.970 1.942 2.941 2.884 3.902 3.808 4.853 4.713 3% 0.971 1.913 2.829 3.717 4.580 4% 5% 6% 7% 8% 9% 10% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 1.886 1.859 1.833 1.808 1.783 1.759 1.736 2.775 2.723 2.673 2.624 2.577 2.531 2.487 3.630 3.546 3.465 3.387 3.312 3.240 3.170 4.452 4.329 4.212 4.100 3.993 3.890 3.791 12% 14% 0.893 0.877 1.690 1.647 2.402 2.322 3.037 2.914 3.605 3.433 15% 0.870 1.626 2.283 2.855 3.352 16% 0.862 1.605 2.246 2.798 3.274 18% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 2.589 3.127 2.991 Period 6 Period 7 Period 8 Period 9 Period 10 5.795 5.601 6.728 6.472 7.652 7.325 8.566 8.162 9.471 8.983 5.417 6.230 7.020 7.786 8.530 5.242 5.076 4.917 4.767 6.002 5.786 5.582 5.389 6.733 6.463 6.210 5.971 7.435 | 7.108 6.802 6.515 8.111 7.722 7.360 7.024 4.623 4.486 4.355 4.111 3.889 5.206 5.033 4.868 4.564 4.288 5.747 5.535 5.335 4.968 4.639 6.247 5.995 5.759 5.328 4.946 6.710 6.418 6.145 5.650 5.216 3.784 4.160 4.487 4.772 5.019 3.685 4.039 4.344 4.607 4.833 3.498 3.326 3.812 3.605 4.078 3.837 4.303 4.031 4.494 4.192 Period 11 Period 12 Period 13 Period 14 Period 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 11.255 10.575 | 9.954 9.385 8.863 8.384 7.943 12.134 11.348 10.635 9.986 9.394 8.853 8.358 13.004 12.106 | 11.296 10.563 9.899 9.295 8.745 13.865 12.849 11.938 11.118 10.380 9.712 9.108 7.139 6.805 6.495 7.536 7.161 6.814 7.904 7.487 7.103 8.244 7.786 7.367 8.559 8.061 7.606 5.938 5.453 6.194 5.660 6.424 5.842 6.6286.002 6.811 6.142 5.234 5.421 5.583 5.724 5.847 5.029 5.197 5.342 5.468 5.575 4.656 4.327 4.793 4.439 4.910 4.533 5.008 4.611 5.092 4.675 Period 16 Period 17 Period 18 Period 19 Period 20 14.718 13.578 12.561 | 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 15.562 14.292 13.166 12.166 11.274 10.477) 9.763 9.122 8.544 8.022 7.120 6.373 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 17.226 15.678 14.32413.134 12.08511.158 10.336 9.604 8.950 8.365 | 7.366 6.550 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 5.954 6.047 6.128 6.198 6.259 5.669 5.749 5.818 5.877 5.929 5.1624.730 5.222 4.775 5.273 4.812 5.316 4.844 5.353 4.870 Period 21 Period 22 Period 23 Period 24 Dariod 25 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.5626.687 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.442 8.772 | 7.645 6.743 20.456 18.292 16.444 14.857 13.489 12.303) 11.272 10.371 9.580 8.883 7.718 6.792 21.24318.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 220221 10522 17 113 15622 114 na 112 7831 11651 10 87519 823 an77 7813 6872 6.312 6.359 6.399 6.434 5.973 6.011 6.044 6.073 5.384 4.891 5.410 4.909 5.432 4.925 5.451 4.937 5167 6161 hna7 Future Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 2% 3% 1.020 1.030 1.040 1.061 1.061 1.093 1.082 1.126 1.104 1.159 4% 5% 6% 7% 1.040 1.050 1.060 1.070 1.082 1.103 1.124 1.145 1.125 1.158 1.191 1.225 1.170 1.216 1.262 1.311 1.217 1.276 1.338 1.403 8% 9% 10% 1.080 1.090 1.100 1.166 1.1881.210 1.260 1.295 1.331 1.360 1.412 1.464 1.469 1.539 1.611 12% 14% 15% 1.120 1.140 1.150 1.254 1.300 1.323 1.405 1.482 1.521 1.574 1.689 1.749 1.762 1.925 2.011 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.072 1.083 1.094 1.105 1.126 1.194 1.149 1.230 1.1721.267 1.195 1.305 1.219 1.344 1.265 1.340 1.419 1.501 1.316 1.407 1.504 1.606 1.369 1.477 1.594 1.718 1.423 1.551 1.689 1.838 1.480 1.629 1.791 1.967 1.587 1.677 1.772 1.714 1.828 1.949 1.851 1.993 2.144 1.999 2.172 2.358 2.159 2.367 2.594 1.974 2.195 2.313 2.211 2.502 2.660 2.476 2.853 3.059 2.773 3.252 3.518 3.106 3.707 4.046 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 1.710 1.898 2.105 1.601 1.796 2.012 2.252 1.665 1.886 2.133 2.410 1.732 1.980 2.261 2.579 1.801 2.079 2.397 | 2.759 2.332 2.580 2.853 2.518 2.813 3.138 2.720 3.066 3.452 2.937 3.342 3.798 3.172 3.642 4.177 3.479 4.226 4.652 3.896 4.818 5.350 4.363 5.492 6.153 4.887 6.261 | 7.076 5.474 7.138 8.137 Period 16 Period 17 Period 18 Period 19 Period 20 1.173 1.184 1.196 1.208 1.220 1.373 1.400 1.428 1.457 1.486 1.605 1.873 2.183 2.540 2.952 1.653 1.948 2.292 2.693 3.159 1.702 2.026 2.407 2.854 3.380 1.754 2.107 2.527 3.026 3.617 1.806 2.1912.653 3.2073.870 3.426 3.970 4.595 3.700 4.328 5.054 3.996 4.717 5.560 4.316 5.1426.116 4.661 5.604 6.727 6.130 8.1379.358 6.866 9.276 10.76 7.690 10.58 12.38 8.613 12.06 14.23 9.646 13.74 16.37 Period 21 Period 22 Period 23 Period 24 Darind 25 1.232 1.245 1.257 1.270 1 282 1.516 1.546 1.577 1.608 1.860 2.279 2.786 3.400 4.141 1.916 2.370 2.925 3.604 4.430 1.974 | 2.465 3.072 3.820 4.741 2.033 2.563 3.225 4.049 5.072 2 na 2006 3 286 1 292 5127 5.034 6.109 7.400 5.437 6.659 8.140 5.871 | 7.258 8.954 6.341 7.911 9.850 6818 8.922 10.83 10.80 15.67 18.82 12.10 17.86 21.64 13.55 20.36 24.89 15.18 23.21 | 28.63 17 00 26.10 22 92 1 611 Future Value of Ordinary Annuity of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 3.030 3.060 3.091 3.122 3.153 4.060 4.122 4.184 4.246 4.310 5.101 5.204 5.309 5.416 5.526 6% 1.000 2.060 3.184 4.375 5.637 7% 8% 9% 10% 1.000 1.000 1.000 1.000 2.070 2.080 2.090 2.100 3.215 3.246 3.278 3.310 4.440 4.506 4.573 4.641 5.751 5.867 5.985 6.105 12% 14% 15% 1.000 1.000 1.000 2.120 2.140 2.150 3.374 3.440 3.473 4.779 4.921 4.993 6.353 6.610 6.742 Period 6 Period 7 Period 8 Period 9 Period 10 6.152 6.308 6.468 6.633 7.214 7.434 7.6627.898 8.286 8.583 8.892 9.214 9.369 9.755 10.16 10.58 10.46 10.95 11.46 12.01 6.802 8.142 9.549 11.03 12.58 6.975 7.1537.336 7.523 7.716 8.115 8.536 8.754 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 9.897 10.260 10.64 11.03 11.44 12.30 13.23 13.73 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 13.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 Period 11 Period 12 Period 13 Period 14 Period 15 11.57 12.17 12.81 13.49 12.68 13.41 14.19 15.03 13.81 14.68 15.62 16.63 14.95 15.97 17.09 18.29 16.10 17.29 18.60 20.02 14.21 15.92 17.71 19.60 21.58 14.97 16.87 18.88 21.02 23.28 15.78 16.65 | 17.56 18.53 20.65 23.04 24.35 17.89 18.98 20.14 21.38 24.13 27.27 | 29.00 20.14 21.50 22.95 24.52 28.03 32.0934.35 22.55 24.21 26.02 27.98 32.39 37.58 40.50 25.13 27.15 29.36 31.77 37.28 43.84 47.58 Period 16 Period 17 Period 18 Period 19 Period 20 17.26 18.64 20.16 21.82 18.43 20.01 21.76 23.70 19.61 21.41 23.41 25.65 20.81 22.84 25.12 27.67 22.02 24.30 26.87 29.78 23.66 25.84 28.13 30.54 33.07 25.67 28.21 30.91 33.76 36.79 27.89 30.32 | 33.00 35.95 42.75 50.98 55.72 30.84 33.75 | 36.97 40.54 48.88 59.12 65.08 34.00 37.45 41.30 45.60 55.75 68.39 75.84 37.38 41.45 46.02 51.16 63.44 | 78.97 88.21 41.00 45.76 51.16 57.28 72.05 91.02 102.4 Period 21 Period 22 Period 23 Period 24 Deriod 25 23.24 25.78 28.68 31.97 35.72 24.47 27.30 30.54 34.25 38.51 25.72 28.85 | 32.45 36.62 41.43 26.97 30.42 34.43 39.08 44.50 28. 21 3203 26.16 1165 17 72 39.99 43.39 47.00 50.82 51 86 44.87 50.42 56.76 64.00 49.01 55.46 62.87 | 71.40 53.4460.89 69.5379.54 58.18 66.76 76.79 88.50 6325 72 11 81 70 ag 25 81.70 92.50 104.6 118.2 1223 104.8 118.8 120.4 137.6 138.3 159.3 158.7 184.2 181 a 2128