i More Info Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): (Click the icon to view the scenarios.) 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.) 5 (Click the icon to view Future Value Ordinary of Annuity of S1 table.) 1. S7,550 per year at the end of each of the next five years 2. $49.950 (lump sum) Now 3. $98,650 (lump sum) five years from now Read the requirements. Requirement 1. Calculate the present value of each scenario using a 8% discount rate. Which scenario yields the highest present value? Round to the nearest dollar. Print Done Begin by calculating the present value of each scenario using a 6% discount rate. (Round the amounts to the nearest dollar.) Present Value * Requirements Scenario 1: Scenario 2: Scenario 3: 1. Calculate the present value of each scenario using a 6% discount rate. Which scenario yields the highest present value7 Round to the nearest dollar. 2. Would your preference change if you used a 10% discount rate? appears to be the best option. Based on a 6% discount rate, its present value is the Y. Requirement 2. Would your preference change if you used a 10% discount rate? Begin by calculating the present value of each scenario using a 10% discount rate. (Round the amounts to the nearest dollar.) Print Done Present Value Scenario 1: Scenario 2: Scenario 3: Enter any number in the edit fields and then continue to the next question. 3/2/2020 Reference 0.623 0.500 Present Value of $1 | Periods| 1% 2% 3% 4% 1 5% 16% 7% 8% 9% 10% | 12% | 14% 115%] 16%] 18% 1 20%] | 0.990 10.980 10.97110.962 10.952 10.943 10.935 10.926 10.917 10.909 10.893 10.877 10.870 10.862 10.847 10.833 10.980 10.96110.943 10.925 10.907 10.890 10.873 | 0.857 10.842 10.826 10.797 10.769 10.756 10.743 10.718 10.694 0.971| 0.942 10.915 10.889 10.864 10.840 10.816 10.794 10.772 10.7511 0.7121 0.675 10.658 | 0.641 10.609 0.579 0.961 10.924 10.888 10.855 | 10.823 | 0.792 10.763 | 0.735 10.708 10.683 10.636 | 0.592 | 0.572 10.552] 0.516 10.482 0.951 0.906 0.863 10.822 0.784 10.747 0.713 0.681 0.650 10.6211 0.567 10.519 0.497 0.476 0.437 10.402 0.942 0.888 10.837 10.790 10.746 | 0.705 0.666 10.630 | 0.596 | 0.564 | 0.507 10.456 10.432 0.410 10.370 0.335 0.933 0.871 10.813 10.760 0.711 10.665 0.583 0.547 | 0.513 | 0.452 10.400 0.376 0.354 10.314 0.279 0.923 0.853 10.789 10.731 10.677 | 0.627 0.582 10.540 0.502 10.467 10.404 0.351 0.327 0.305 10.266 10.233 0.914 0.837 10.766 | 0.703 10.645 | 0.592 | 0.460 | 0.424 10.361 | 0.308 10.284 10.263 10.225 0.194 0.905 0.820 0.744 | 0.676 0.614 0.558 0.508 10.463 0.422 10.386 0.322 0.270 0.247 0.227 0.191 0.162 0.896 10.804 10.722 10.650 | 0.585 10.527 0.475 10.429 10.388 10.350 10.287 10.237 10.215 10.195 10.162 0.135 0.887 0.788 10.701 | 0.625 10.557 10.497 0.444 10.397 10.356 10.319 10.257 | 0.208 0.187 0.168 0.137 10.112 0.879 0.773 10.681 | 0.601 10.530 10.469 0.415 | 10.368 | 0.326 10.290 10.229 0.182 10.163 0.145 10.116 10.093 0.870 | 0.758 | 0.661 | 0.577 10.505 | 0.442 0.388 | 0.340 10.299 10.263 | 0.205 | 0.160 | 0.141 10.125 10.099 10.078 0.861 0.743 10.642 | 0.555 0.481 0.417 0.362 10.315 0.275 10.239 | 0.183 10.140 10.123 0.108 0.084 0.065 0.853 10.728 10.623 10.534 10.458 10.394 0.339 10.292 0.252 10.218 | 0.163 | 0.123 0.107 0.093 10.071 10.054 0.844 0. 74 | 0.605 10.513 10.436 10.371 0.317 0.270 0.231 10.198 10.146 10.108 0.093 | 0.080 0.060 10.045 0.836 0.700 0.587 | 0.494 10.416 10.350 0.296 10.250 0.212 0.180 | 0.130 0.095 10.081 0.069 0.051 0.828 10.686 10.570 | 0.475 | 0.396 0.331 0.277 | 10.232 | 10.194 10.164 | 0.116 | 0.083 10.070 10.060 10.043 0.031 0.820 0.673 0.554 | 0.456 0.377 0.312 0.258 0.215 0.178 10.149 | 0.104 0.073 10.061 0.051 0.037 0.026 0.811 0.660 10.538 | 0.439 10.359 10.294 0.242 10.199 0.164 10.135 10.093 0.064 | 0.053 10.044 10.031 10.022 0.803 0.647 10.522 10.422 10.342 | 0.278 0.184 0.150 10.123 10.083 10.056 0.046 | 0.038 10.026 10.018 0.795 0.634 10.507 10.406 0.326 10.262 0.211 10.170 0.138 0.112 10.074 0.049 0.040 0.033 10.022 0.015 0.788 0.622 10.492 0.390 10.310 0.247 0.197 10.158 0.126 10.102 0.066 10.043 0.035 0.028 0.019 0.013 0.780 0.610 10.478 10.375 0.295 10.233 0.184 | | 0.146 10.116 0.092 10.059 0.038 0.030 0.024 10.016 10.010 0.772 0.598 | 0.464 | 0.361 10.281 | 0.220 0.172 10.135 10.106 | 0.084 | 0.053 10.033 0.026 10.021 10.014 0.009 0.764 0.586 0.450 | 0.347 0.268 10.207 10.161 10.125 0.098 0.076 10.047 0.029 0.023 0.018 10.011 0.007 0.757 10.574 10.437 | 0.333 0.255 10.196 10.150 0.090 10.069 | 0.042 0.026 | 0.020 0.016 10.010 0.006 0.749 10.563 10.424 10.321 10.243 10.185 0.141 10.107 0.082 0.063 10.037 | 0.022 0.017 0.014 0.008 0.005 0.742 | 0.552 10.412 10.308 10.231 10.174 | 0.131 0.099 | 0.075 10.057] 0.033 | 0.020 0.015 | 0.012 | 0.007 0.672 10.453 0.307 | 0.208 | 0.142 | 0.097 10.067 | | 0.046 | 10.022 | 0.011 | 0.005 10.004 10.003 | 0.001 10.608 10.372 10.228 10.14110.087 10.054 10.034 | 0.021 | 0.013 ] 0.009 10.003 0.001 10.001 | 0.001 34567898m22466B9%a%84% www 10.038 0.226 0.116 0.057 | 0.032 3/2/2020 Reference Present Value of Ordinary Annuity of $1 6.811 | Periods) 1% | 2% 3% | 4% | 5% | 6% | 7% | 8% 1 9% | 10% | 12% | 14% | 15% | 16% 1 18% | 20%, | 0.990 10.980 10.97110.962 10.952 10.943 10.935 10.926 10.917 10.909 10.893 10.877 10.870 10.862 10.847 10.833 1.970 1.942 11.913 1.886 1.859 | 1.833 | 1.808 11.783 11.759 11.736 11.690 | 1.647 | 1.626 1.605 | 1.566 1.528 2.941 2.884 12.829 | 2.775 12.723 | 2.673 2.624 2.577 2.531 12.487 2.402 2.322 | 2.283 | 2.246 12.174 | 2.106 3.902 3.808 3.717 13.630 3.546 | 3.465 3.387 3.312 3.240 3.170 3.037 2.914 | 2.855 | 2.798 2.690 | | 2.589 4.853 4.713 4.580 14.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 5.795 5.601 5.417 15.242 15.076 | 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 15.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 7.652 7.325 7.020 | 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 8.566 | 8.162 7.786 17.435 | 7.108 | 6.802 6.515 | 16.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 9.471 8.983 8.530 | 18.11 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.192 10.368 | 19.787 | 19.253 | 8.760 18.306 | 7.887 7.499 7.139 6.805 16.495 5.938 15.453 5.234 5.029 4.656 4.327 11.255|10.57519.954 19.385 | 8.863 18.384 7.943 7.536 7.161 16.814 6.194 5.660 5.421 5.197 4.793 4.439 12.134 | 11.348 | 10.635] 9.986 19.394 | 8.853 8.358 | 7.904 7.487 17.103 6.424 5.842 5.583 5.342 4.910 4.533 13.004 | 12.106] 11.296 |10.56319.899 19.295 | 18.745 18.244 7.786 7.367 6.628 6.002 | 5.724 5.468 5.008 4.61 13.865| 12.849 | 11.938| 11.118| 10.380 | | 9.712 19.108 8.559 8.061 7.606 6.142 5.847 5.575 5.092 4.675 14.718| 13.578| 12.561| 11.652 | 10.838| 10.106 19.447 8.313 17.824 16.974 6.265 5.954 5.669 5.162 4.730 15.562 | 14.292 | 13.166|12.166 | 11.274 | 10.477 9.763 | 19.122 8.544 | 8.022 7.120 6.373 | 16.047 5.749 5.222 4.775 | 16.398114.992 | 13.754] 12.659] 11.690 | 10.828|10.0591 9.372 8.756 8.201 7.250 6.467 | 6.128 5.818 5.273 4.812 17.226| 15.678 | 14.324| 13.134 | 12.085 | 11.158 | 10.336 | 9.604 8.950 8.365 7.366 | 6.550 16.198 5.877 5.316 4.844 18.046| 16.351| 14.877) | 13.590 | 12.462 | 11.470 | 10.594 | 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 18.857] 17.011 | 15.415| 14.029 | 12.821| 11.764 | 10.836 | 10.017 9.292 8.649 7.562 6.687 | 6.312 5.973 5.384 4.891 19.660 | 17.658 | 15.937 14.451113.163|12.042 | | 11.061|10.201 9.442 8.772 7.645 6.743 | 6.359 6.011 5.410 4.909 20.456 | 18.292] 16.444114.857113.489 12.303111.272] 10.37119.580 8.883 7.718 6.792 6.399 6.044 5.432 21.243118.914116.936115.247 13.799| 12.550 | 11.469 10.529] 9.707 18.985 7.784 6.835 16.434 6.073 5.451 4.937 22.023 19.523 | 17.413|15.622 | 14.094 | 12.783| 11.654 | 10.675 19.823 9.077 7.843 6.873 6.464 6.097 5.467 4.948 22.795 | 20.121117.877| 15.983| 14.375| 13.003] 11.826|10.810 | 19.929 19.161 7.896 | 6.906 | 6.491 6.118 5.480 4.956 | 23.560 | 20.707118.327 16.330 14.6431 13.211111.987110.935 | 10.027 9.237 7.943 6.935 6.514 6.136 5.492 4.964 24.316 | 21.281 | 18.764| 16.663 | 14.898 | 13.406 | 12.137 | 11.051| 10.116] 9.307 6.961 | 6.534 6.152 5.502 4.970 25.066 | 21.84] 19.188| 16.984 | 15.141| 13.591 12.278| 11.158 | 10.198 | 9.370 8.022 6.983 6.551 6.166 5.510 4.975 25.808 | 22.396 | 19.600 | 17.292 | 15.372 | 13.765 | 12.409 | 11.258 | 10.274 | 9.427 8.055 7.003 | 6.566 | 6.177 5.517 4.979 32.835 | 27.355 | 23.115 | 19.793 | 17.159 | 15.046| 13.332 | 11.925 | 10.757] 9.779 8.244 | 7.105 | 6.642 16.233 5.548 4.997 39.196 | 31.424 | 25.730 | 21.482 | 18.256 | 15.762 | 13.801 | 12.233 | 10.962 | 9.915 17.133 | 6661 | 5.554 4.999 8.851 34567898m2246 BNB9%a884www 4.870 4.925 7.984 3/2/2020 Reference 2.159 1.138 Future Value of $1 | Periods| 1% 2% 1 3% 4% 5% 6% 7% 8% 9% | 10%] 12% 14% 115%] | 1.010 | 1.020 | 1.030 11.040 | 1.050 | 1.060 | 1.070 11.080 11.090 11.100 1 1.120 | 1.140 11.150 1.020 11.040 1.061 | 1.082 1.103 1.124 1.145 1.166 1.188 | 1.210 1.254 1.300 | 1.323 1.030 | 1.061 1.093 | 1.125 | 1.158 | 1.191 1.225 | 1.260 | 1.295 1.331 | 1.405 | 1.521 1.0411 1.082 1.126 | 1.170 11.216 | 1.262 11.311 | 1.360 | 1.412 | 1.464 1.574 | 1.689 1.749 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 1.062 | 1.126 1.194 | 1.265 | 1.340 | 1.419 1.501 | 1.587 1.677 | 1.772 1.974 2.195 2.313 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.211 2.502 2.660 1.083 | 1.172 1267 1.369 1.477 | 1594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 1.094 | 1.195 1.305 1.423 | 1.551 | 1.689 | 1.838 | 1.999 2.172 12.358 2.7731 3.252 | 3.518 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.367 2.594 3.106 3.707 4.046 1.116 1.243 1.384 1.539 | 1.710 | 1.898 2.105 12.332 2.580 2.853 3.479 4.226 | 4.652 1.127 1.268 1.426 | 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 | 1.294 1.469 | 1.665 1.886 12.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 1.149 1.319 1.513 1.980 2.261 2.579 2.937 3.342 13.798 4.887 6.261 | 7.076 1.161 | 1.346 1.558 | 1.801 2.079 2.397 2.759 3.172 3.642 4.177 5.474 7.138 8.137 1.173 | 1.373 1.605 1.873 2.183 2.952 13.426 3.970 4.595 6.130 9.358 1.184 | 1.400 1.653 2.292 12.693 3.159 3.700 4.328 5.054 6.866 9.276 10.76 1.196 | 1.428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 5.560 7.690 10.58 12.38 1.208 | 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 16.116 8.613 | 12.06 14.23 1.220 | 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.727 9.646 13.74 16.37 1.232 1.860 2.279 2.786 3.400 4.141 5.034 6.109 7.400 | 10.80 15.67 18.82 1.245 1.546 1.916 2.370 2.925 3.604 4.430 5.437 6.659 8.140 12.10 17.86 21.64 1.257 | 1.577 1.974 2.465 3.072 3.820 4.741 5.871 7.258 8.954 13.55 20.36 24.89 1.270 | 1.608 2.033 2.563 3.225 4.049 5.072 6.341 7.911 9.850 15.18 123.21 28.63 1.282 | 1.641 2.094 2.666 3.386 4.292 5.427 6.848 8.623 10.83 17.00 26.46 32.92 1.295 2.157 2.772 3.556 4.549 5.807 7.396 19.399 11.92 19.04 30.17 1.308 1.707 2.221 2.883 3.733 4.822 6.214 7.988 10.25 13.11 21.32 34.39 43.54 1.321 1741 2.288 2.999 3.920 5.112 6.649 18.627 11.17 14.42 23.88 39.20 50.07 1.335 1.776 2.357 3.119 4.116 5.418 7.114 9.317 12.17 15.86 26.75 44.69 57.58 1.348 | 1811 2.427 13.243 5.743 | 17.612 | 10.06 | 13.27 17.45 29.96 50.95 66.21 1.489 | 2.208 3.262 14.801 | | 7.040 | 10.29 | 31.41 45.26 93.05 | 188.9 267.9 1.645 | 2.692 4.384 17.107 | 11.47 18.42 | 29.46 | 46.90 | 74.36 | 117.4 289.0 | 700.2 1,084 2.540 8.137 5 67890 HB2466MB9%a2%%99% 8 | 1.516 1.673 37.86 4.322 21.72 3/2/2020 Reference 5.985 8.394 37.28 Future Value of Ordinary Annuity of $1 | Periods| 1% 2% 1 3% 4% 5% 6% 7% 8% 9% 10%] 12% 14% 115%] 1.000 11.000 11.000 11.000 11.000 | 1.000 11.000 11.000 11.000 | 1.000 1 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 3.030 3.060 13.091 3.122 3.153 3.184 3.215 3.246 13.278 3.310 3.374 13.440 13.473 4.060 4.122 4.184 4.246 4.310 4.375 14.440 4.506 4.573 4.641 4.779 4.921 | 4.993 5.101 5.204 5.309 5.416 5.526 5.637 15.751 5.867 6.105 6.353 6.610 6.742 6.152 16.308 6.468 6.633 6.802 6.975 7.153 17.336 7.523 7.716 18.115 18.536 18.754 7.214 7.434 7.662 7.898 8.142 8.654 8.923 9.200 19.487 10.09 10.73 | 11.07 8.286 18.583 8.892 9.214 9.549 9.897 10.260 10.64 11.03 11.44 12.30 13.23 13.73 9.369 | 9.755 | 10.16 | 10.58 | 11.03 | 11.49 | 11.98 | 12.49 | 13.02 | 13.58 14.78 16.09 16.79 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 11.57 | 12.17 12.81 | 13.49 14.21 | 14.97 15.78 16.65 | 17.56 18.53 20.65 23.04 24.35 12.68 | 13.41 14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 14.95 | 15.97 17.09 18.29 19.60 21.02 22.55 24.21 126.02 27.98 32.39 37.58 40.50 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 31.77 43.84 47.58 17.26 | 18.64 20.16 21.82 23.66 27.89 30.32 33.00 35.95 42.75 50.98 55.72 18.43 20.01 21.76 123.70 25.84 28.21 30.84 33.75 | | 36.97 40.54 48.88 59.12 65.08 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 55.75 68.39 75.84 20.81 22.84 25.12 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 178.97 88.21 22.02 24.30 26.87 29.78 33.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4 23.24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 | 118.8 24.47 27.30 30.54 34.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 25.72 28.85 32.45 36.62 41.43 47.00 53.44 60.89 69.53 79.54 104.6 138.3 159.3 26.97 30.42 34.43 39.08 44.50 50.82 58.18 66.76 176.79 88.50 118.2 158.7 184.2 32.03 36.46 41.65 47.73 54.86 63.25 | 84.70 98.35 133.3 181.9 212.8 29.53 33.67 38.55 44.31 51.11 59.16 68.68 79.95 193.32 109.2 150.3 208.3 245.7 30.82 35.34 40.71 47.08 54.67 63.71 74.48 87.35 | 102.7 121.1 238.5 283.6 32.13 37.05 42.93 49.97 58.40 68.53 80.70 195.34 113.0 134.2 190.7 272.9 327.1 33.45 38.79 45.22 52.97 62.32 73.64 87.35 104.0 124.1 | 148.6 214.6 312.1 377.2 34.78 | 40.57 47.58 56.08 66.44 79.06 94.46 | 113.3 | | 136.3 | 164.5 241.3 356.8 434.7 48.89 | 60.40 75.40 120.8 | 154.8 | 199.6 1259.1 | 337.9 442.6 1767.1 | 1,342 | 1,779 64.46 | 84.58 | 112.8 290.3 406.5 1573.8 1815.11 1.164 | 2.400 | 4,995 17.218 25.67 28.24 73.11 169.4 95.03 | 152.7