Exercise B-10 (Algo) Present values of annuities LO P3 C&H Ski Club recently borrowed money and agreed to pay it back with a series of six annual payments of $7,000 each. At the same time, C&H borrowed additional money and agreed to pay it back with a series of four annual payments of $10,500 each. The annual interest rate for both loans is 9%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use factor(s) from the tables provided. Round answers to nearest whole dollar. Round "Table Factor" to 4 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the correct table to find the present value of these two separate annuities. (Round amounts to the nearest dollar.) First Annuity Number of Periods Interest Rate Single Future Payment Table Factor Present Value First payment 1 9% $ 7,000 x 0.9174 = $ 6,421 Second payment 2 9% 7,000 x 0.8417 = 589 Third payment 3 9% 7,000 x 0.7722 = 5,405 Fourth payment 4 9% 7,000 x 0.7084 4,959 Fifth payment 5 9% 7,000 x 0.6499 = 4,549 Sixth payment 6 9% 7,000 x 0.5963 = 4,174 $ 26,097 Second Annuity Number of Periods Interest Rate Single Future Payment Table Factor = Present Value First payment 1 9% $ 10,500 x 0.9174 = $ 9,632 Second payment 2 9% 10,500 0.8417 8,837 Third payment 3 9% 10,500 x 0.7722 = 8,108 Fourth payment 4 9% 10,500 x 0.7084 7,438 $ 34,015 < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the correct table to find the present value of these two separate annuities. (Round amounts to the nearest dollar.) P (PV of an Annuity Periodic Cash Flow x Ordinary Present Value Annuity) First Annuity x = S 26,097 Second Annuity X = $ 34,015 < Required 1 Required 2 > Table B.1* Present Value of 1 p=1/(1+i)" Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% Periods 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 1 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 4 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.8163 0.7938 0.7350 0.6806 0.6499 0.8417 0.7722 0.7513 0.7084 0.6830 0.8264 0.7972 0.7118 0.7561 2 0.6575 3 0.6355 0.5718 4 0.6209 0.5674 0.4972 5 6 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5066 0.4323 6 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4523 0.3759 7 8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4039 0.3269 8 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606 0.2843 9 10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220 0.2472 10 11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.2875 0.2149 11 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2567 0.1869 12 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2292 0.1625 13 14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2046 0.1413 14 15 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 16 0.8528 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 17 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.2176 0.1631 0.1978 0.2394 0.1827 0.1229 0.1069 15 16 0.1456 0.0929 17 18 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1300 0.0808 18 19 0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 0.1161 0.0703 19 20 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1037 0.0611 20 25 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0588 0.0304 25 30 0.7419 0.5521 0.4120 0.3083 0.2314 35 0.7059 0.5000 0.3554 0.2534 0.1813 40 0.6717 0.4529 0.3066 0.2083 0.1420 0.0573 0.0356 0.0189 0.0221 0.0107 0.0037 *Used to compute the present value of a known future amount. For example: How much would you need to invest today at 10% compounded semiannually to accumulate $5,000 in 6 years from today? Using the factors of n = 12 and i = 5% (12 semiannual periods and a semiannual rate of 5%), the factor is 0.5568. You would need to invest $2,784 today ($5,000 x 0.5568). 0.1741 0.1314 0.0994 0.0754 0.0334 0.0151 30 0.1301 0.0937 0.0676 0.0490 0.0075 35 0.0972 0.0668 0.0460 0.0318 40