Exercise B-17 (Algo) Future value of an amount plus an annuity LO P2, P4 Starr Company decides to establish a fund that it will use 2 years from now to replace an aging production facility. The company will make a $96,000 initial contribution to the fund and plans to make quarterly contributions of $47,000 beginning in three months. The fund earns 4%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar.) What will be the value of the fund 2 years from now? Table Values are Based on: n = Initial Investment Periodic Investments Future Value of Fund = Present Value Table Factor Future Value 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