How much will $18000 grow to over 20 years if the annual rate of return is 6%? 3.00 You know the PV and are trying to find the FV of single sum (FV $1 table). Exercise 1 10 13 S 14 22 23 Exercise 2 24 27 28 37 38 Exercise 3 39 42 43 45 46 52 Exercise 4 53 56 57 If you need $10000 in 14 years, how much should you set aside today? Assume an 8% annual return? Submit your answer. If you Invest $1000 each year for 40 years, how much will you have at the end of 40 years assuming a 9% annual return? Submit your answer. If you want to withdraw $25000 each year for 30 years, how much would you need to have saved today to fund these withdrawals? (Assume a 7% annual return.) Submit your answer. BUT IT THE W 31.548 HERE G ( 14.12 BEE DOW BAR SE 200 M 199 SIVE Esse [2] FIRE BOCK 140 LONG M MEE www NNET ARIST 5404 25 700 000 NEWS 093 545 TE 2012 OVE DONE M ERIE 8100 2303 4.12 1.10 2062 DOLE FAVE DIY JIRE C OVE 100% DAY MIE NIVE 100 2773 NIFE 24 1.80 RE A OW ( ONE 1974 149 1477 1 1430 CALL 1405 1 WE'S VICT ADES HEY 0 LET'S PICE OCES He KAR TALE Future Value of $1 1100 5 2612) WHEE COB 11.07 G 7 HES ONE'S INTY ENCE 1063 LOVE W DEE TREE M 2427 WW 44 210 NEE ore 2.183 1875 LACE 19CE IVES AVE DEVE 10 201 HE MI'S 1331905 BEL ZELY CIFY 1. LOWS SOPS HEL PICE 196 306 143 140 1710 191 WEL NEW DIEL 1477 1407 1140 1419 200 1.0 311 1,00 BEY OR'S NOVE % ONE STREE BEL DEL ONL 1000 1040 SP 123327 3100 71072 103 1041 104 1062 1003 000 1050 1% 0.000 2% 0000 3% 0971 092 0.952 8.000 05 0.071 10.047 0.001 0823 0702 0.951 0900 0942 0317 122 0700 0.74 0.70 7% 0943 0935 0.000 0475 0.000 0.004 0.040 0816 763 0.736 0747 0715 0705 0.006 Present Value of $1 0% 10% 11% 1999 14% 15% 16% 0906 0017 0000001 083 065 0.477 870 17% 0056 047 18% 794 0.933 0871 0413 0923 0905 0800 0853 0780 0837 0766 0820 1700 0.711 Phot 3731 0477 0.000 0623 0827 0582 0502 0.467 0434 0404 0.370 0.351 0327 042 0806 0812 07977850007560743 0772 0.751 0731 0.712 0090 0675 00 041 0624 700 603 0409 03 0.613 0.52 0.572 0552 0.534 0516 en 625 0503 0.547 0.643 0.5190407 0.4700406 0437 8430 0506 0.5646535 0.50704000454 0432 0410 0300 037 0503 0347 0.513 042 042 0425 0.400 0.376 0.364 0.540 0731 0718 T20% 0545833 0.700 6604 0540 0579 0409 042 333 0314 0419 0402 036305 0296 0379 0.306 206 0266 0248 0233 1703 0.045 now 9744 0676 0614 6.722 0400 0.544 0.500 50 0463 007 0700 6701 8435 0527 0475 047 0429 400 0424 0301 0301 0.333 0.000 0.204 0472 030702060 270 M 0327 0300 0.350 0317 02762610237 215 X135 33060319 0.363 0345 225 0.209 104 0208 0,178 0142 0.152 15 8879 6.773 0001 0326 0.290 0.258 0.229 6204 0.116 0178 17 014803 0134 0112 01040095 14 670 6754 046 0340 0209 0263 0.332 0140 141 15 0.001 6743 0642 0417 0315 0375 0239 10 6728 0623 70634 03 0.20 0.218 100 0.003 0.006 0.004 60016071 17 0844 0714 0005 700 " 0828 06060570 0.46 0.375 0404 0.410 0.300 0475 0.306 10+ 270 0.076 0005 602 6054 0.062 0.045 250 0277 0.327 8.39 6.780 6610 0478 0.375 0.333 0742 0.706 0412 500 0355 0.253 0672 403 6507 0600 372 0226 0.141 6.21 6.176 0.181 0130 0.004 0147 0.000 0.054 0.004 0252 0.194 0.164 0138 0.156 .000 0.083 070 0.000 4215 0178 0148 0146 0.1160002 0.074 0.00047 0.008 0.030 000007 0044 0.035 00000018 0040 000 0006 0.019 0014 0.010 000 0032 0022 0015 001 006 000 000 0.013 0.00% 0.005 0.063 002 0.001 0.004 0.000 0.010 0.012 0.009 0.007 0.006 004 0.003 0.00002 0001 00000000 0.006 0.004 0.002 0.002 0.0000000 00010043 Future Value of an Ordinary Annuity of $1 1% n 10% 1000 1,000 1000 100 1000 1000 1.000 1000 1000 5000 2010 2000 200 200 1.000 2000 200 2000 100 2120 300 30 M 15 3310 330 5304 4122 43 D 4305 450 4641 470 47 50 5807 5791 SUNY 182 1.38 6576 73M 1782 37 6116 1214 7AM TW 140 4 200 347 MI S ARE 8214 10 1149 11809 tx 1300 $700 10150 11.087 124 13670 18104 347 O 1447 1599 16722 17.60 30.308 17% N 1000 1000 1.000 1000 2 2300 2170 200 1300 3473 3500 Es 1406 100 400 1216 1301 5 6877 2014 730 8017 5307 M sme 12PM 14773 30.20 35 4 14307 1200 He 1670) 2014 21.3M 7273 Jm M 2000 M XLMO M 429 21 342 30.00 0.001 17.290 16 18.00 20012 21.72 MO 220 THE 19615 21412 30 19 202 27675 2477 3000 MONO 17.39 300 320x1 40 47727 SAMS M4A1 30 7552 10320 13090 M 11267 SAM ]] 1 #20 96110 72.00 H TOMO QUO 300 el 11627 128 12 12541 1964 13033 MUNO WEST Una 101 LOVE 201 Present Value of an Ordinary Annuity of $1 1% 2% 3% 4% 5% 0% t 0.000 0.960 0.071 0.062 0.952 0.043 7% 0.935 8% 0.926 0917 96 10% 0.000 12% 0901 13% 0.65 0.877 14% 15% 16% 0870 25 1.970 1942 1913 1.086 1050 1.833 1.808 1.783 1.750 1.600 3 2.041 2.004 2829 2775 2.723 2.673 2.624 2.531 2.577 2.487 4 3.902 3.000 3.717 3.630 3.546 3.465 3.347 3.312 3.240 3.170 3.102 5 4853 4.715 4500 4.452 4.329 4212 4.100 3.093 3.000 5.795 5.601 5.417 5.242 5.076 4917 4.767 4623 4.486 4.355 7 6.728 6.472 6230 6002 5.786 5.562 5.389 5.206 5.033 4568 " 7.652 7325 7.020 6733 6.463 6.210 5.971 5747 5.535 5.335 " &504 8.162 7.7M 7.435 7.108 6802 6515 6.247 5.906 5.750 5.537 10 471 063 .530. 8.111 7722 7360 7.024 6.710 6418 6145 11 10.368 9.767 9253 6.760 8306 7.M 7.499 7.139 6805 12 11.256 10.575 054 9.385 8.304 7.643 7.536 7.161 68146492 1.647 1.736 1.715 1.668 2.283 2.444 2.402 2361 2.322 3.037 2.974 2.914 2055 3701 3.696 3.433 3517 3.352 3.274 3.109 3605 3685 3500 4111 3008 3.089 3.764 4.231 4.009 3922 4712 4.564 4.256 4160 4.423 4.639 4467 4.799 5146 4772 46 5328 5132 6216 4459 5019 6000 5.650 6426 6234 5687 6453 6207 008 6405 6104 5.918 5600 5.421 1.626 17% 0.862 0.6550847 1605 1.585 1506 10% 19% 0400833 20% 1.547 1528 2.246 2.210 2.174 2.140 2.106 2.7 2.743 2.600 2.630 2.500 3.127 3008 2991 3.400 3410 3326 1812 3.706 3.605 4.344 4207 4607 4451 4303 4433 4078 3054 3837 4.163 4001 4404 4.192 4.836 5029 4.606 44M 4.327 197 4900 4.795 4.611 4.4% 13 12.1M 11.348 10.636 9.304 53 8.356 7.904 7103 6.750 6424 6.122 5.042 5583 5342 5118 4910 4.715 4.533 14 13.004 12.106 11.296 10.563 0.000 9.295 8.745 8.244 7.706 15 13.00 12 349 11.938 31.116 10.380 9.712 108 550 061 16 14716 15.576 12 661 11652 1638 10.106 8.447 051 1513 5.724 5.400 6462 6542 547 62655954 5229 5.008 4300 4615 6.575 534 4876 4675 5406 5142 40384730 17 15 562 14.202 13166 12 106 11.274 10.477 763 9122 544022 740 18 16.308 14.992 13.754 12.050 11.000 10.828 10059 372 754 201 7702 6475 6222 5534 527) 4990 4775 6.033 4812 19 17.226 15.676 14.304 13.134 12.005 11.154 10.336 9404 950 365 7.839 5504 5318 070 4.843 20 18 046 16.351. 14.877 13.500 12 462 11.470 10 504 9418 9.129 514 7.036 25 22 023 19.523 17.415 15.622 14.004 12.763 11654 10675 425 9077 422 743 7330 30 25.806 22.396 19 600 17.202 15.372 13705 13.409 10.274 9427 604 8055 7.406 25 35 20 409 24.000 21.467 16.665 16.374 14.49 12048 11.655 10.567 9444 8455.176 26 40 32.835 27.366 23.115 19.793 17.159 15.046 13.332 11.925 10.757 770 951 244 50 30 106 31.424 25 730 21 482 18.256 15.762 13.001 10 962 9.915042 12.233 7.56 7.6 63047675 5438 6.623 250 09 5.766 64646007 7 000 6.566 6177 5429 5517 7.070 6617 215 5.458 5539 7.105 6642 6233 5471 5540 6.246 7.133 6061 $235 4.979 101 70 5.467 105 4948 5258 4997 28 29 30 31 32 33 99 66 67 Exercise 5 If you purchase a machine and borrow $10000, what will your approximate monthly payment be if you pay back the loan over 5 years. Assume a 10% Interest rate. Submit your answer. 70 71 72 73 74 80 81 84 85 86 Exercise 6 You are considering purchasing a new machine for $144000 that will save $27000 per year for 8 years. If cost of capital is 12%, what is the net present value (NPV) of buying the new machine? 87 88 Should you purchase the machine? 91 92 93 94 95 98 99 100 Submit your answer. No Correct! Exercise 7 You are considering investing in a project that will require an initial capital outlay of $100000 and generate annual cash flows of $15575 for 10 years. What is the internal rate of return (IRR) for this project? Submit your answer. Exercise 8 9 If you borrow $900000 to purchase a home, what do you expect your monthly payment will be? Assume a 30 year mortgage and a fixed 7% Interest rate. Submit your answer. Exercise 9 If you invest $7500 each year for 35 years, how much will you have at the end of 35 years assuming a 10% annual return? 4 5 Exercise 10 36 89 40 49 50 Exercise 11 Submit your answer. 30 years ago, Z Co set aside $15000 in an account that earned an 8% annual return. What is that amount worth today? Submit your answer. You are considering investing $35000 in a project that will generate cash flows of $6000 per year for 12 years. If your cost of capital is 10%, what is the net present value (NPV) of the investment? 51 54 Submit your answer. 55 1-12 DQ QS 158 161 102 103 164 Exercise 12 165 168 169 170 171 172 Should you make the investment? Yes Correct! You are considering Investing $40000 in a project that will generate annual cash flows of $3853.56 for 15 years. What is the internal rate of return (IRR) for this project? Submit your