In eight years, when he is discharged from the Air Force, Steve wants to buy a $16,000 power boat. Click here to view Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $16,000 at the end of eight years if he can invest money at (Round your final answer to the nearest whole dollar amount.) 1. Eleven percent 2. Twelve percent Present Value EXHIBIT 148-1 Present Value of $1;1(1+r)n Periods 4% 5% 6% 7% 8% 9% T 0.962 0.952 0.943 0.935 0.926 2 0.925 0.907 0.890 0.873 0.857 3 0.889 0.864 0.840 0816 0.794 0.772 4 0.855 0.823 0.792 0.763 5 0.822 0.784 0.747 0.713 6 0.790 0.746 0.705 0.666 7 0.760 0.711 0.665 0.623 8 0.731 0.677 0.627 0.582 9 0.544 10 11 12 0.625 0.557 13 0.601 0.530 0.469 14 0577 0.505 | 0.442 0.232 15 0.555 0.481 0417 0.239 16 0.534 0.458 0.394 0.339 17 0513 0.436 0.371 0317 18 19 20 21 22 23 24 25 26 27 28 29 30 0.131 40 0.125 0.098 0.116 0.090 0.107 0.082 0.099 0.075 0.046 0.032 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 0.917 0.909 0.901 20% 21% 22% 23% 24% 25% 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.751 0.731 0.712 0.693 0.640 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0551 0.537 0524 0.512 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0534 0.516 0.499 0.482 0.467 0.451 0437 0423 0410 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0419 0402 0.386 0.370 | 0.355 0.341 0.630 0.328 0.596 0.564 0.535 0.507 0480 0.456 0.432 0410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 0.583 0.547 0.513 0.482 0452 0425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0235 0.222 0210 0.540 0.502 0.467 0434 0404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 | 0.233 0.218 0.703 0.645 | 0.592 0.204 0.191 0.179 0.168 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 0.497 0444 0.397 0.356 0319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 0415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0093 0.084 0.075 0.068 0.061 0.055 0.388 0.340 0.299 0.263 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.362 0.315 0.275 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 | 0.054 0.047 0.042 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 | 0.052 0.045 0.039 0.034 0.494 0.416 0.350 0.296 0.250 | 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0044 0.038 0.032 0.028 0475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 0.456 0.377 0312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.422 0.342 | 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0011 0.009 0.007 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 | 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0015 0013 0.010 0.008 0.007 0.006 0.005 0375 0.295 0.233 0.361 0.281 0.220 0.172 0.347 0.268 0.207 0.161 0.333 0.255 0.196 0.150 0.321 0.243 0.185 0.141 0.308 0.231 0.174 0.208 0.142 0.097 0.067 0.044 0.035 0.036 | 0.032 0.028 0.030 0.026 0023 0.024 0.021 0018 0.016 0.014 0.012 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.026 0021 0017 0014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.076 0.060 0.047 0037 0.029 0.023 0.018 0.014 0.011 0.009 0.006 0.005 0.004 0.003 0.002 0.069 0.054 0.042 0.033 0.026 0.020 | 0.016 0.012 0.010 | 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.063 0.048 0.017 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0.057 0.044 0.033 0.026 0.020 0.015 0.012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0.022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.007 EXHIBIT 148-2 Present Value of an Annuity of $1 in Arrears; 1 r1 1-1(1+r)n] Update Periods 4% 5% 6% 9% 1 0.962 0.952 2 1886 3 2.775 2.723 4 5 6 5.242 5.076 4.917 4.767 4.623 2 6.002 5.786 5.582 5.389 8 6.733 6.463 6.210 5.206 5.971 5.747 9. 7435 7.108 6.802 6.515 6.247 5.995 10 8.111 7.722 7.360 7.024 6.710 11 8.760 8.306 7887 7499 7.139 6.805 6495 12 9.385 8.863 8.384 7.943 7.536 7.161 6.814 13 9.986 9.394 8.853 8.358 7.904 14 10.563 9.899 9.295 8.745 15 11.118 10.380 9.712 9.108 16 11 652 10.838 10.106 9.447 17 12.166 11.274 10.477 9.763 9.122 8.544 18 19 12.659 11.690 10.828 10.059 9.372 13.134 12.085 11.158 8.756 10.336 9.604 8.950 20 13.590 12.462 11 470 10.594 9.818 9.129 21 11.764 22 23 24 25 9.823 26 27 28 29 30 40 7% 8% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 0.943 0.935 0.926 21% 0.917 0.909 0.901 0.893 23% 24% 25% 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0826 0.820 0.813 0.806 0.800 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1547 1528 1.509 2.673 2.624 2.577 2.531 2487 2444 2.402 2.361 1492 1474 1457 1440 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2074 2.042 3.630 3.546 3465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2011 1.981 1952 4.452 4.329 4.212 4.100 3.993 3.890 3.791 2.448 2.404 2.362 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 4486 4.355 4.231 4.1111 2.689 3.998 3.889 3.784 3.685 3.589 3498 3.410 3326 3.245 3.167 5.033 3092 3.020 2.951 4.868 4.712 4.564 4423 4.288 4.160 4039 3.922 3812 3.706 3.605 5.535 5.335 5.146 4.968 4.799 3.508 3.416 3.327 3242 3.161 4.639 4487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3518 | 3421 3329 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4031 3.905 3.786 3.673 3.566 3463 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4494 4.339 4.192) 4.054 3.923 3.799 3.682 3.571 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4486 4.327 4.177 4.035 3.902 3.776 3.656 6.492 6.194 5.918 5.660 5421 5.197 4.988 4.793 4611 4439 4.278 4.127 3.985 3.851 3.725 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4533 4.362 4.203 4.053 3.912 3.780 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4432 4.265 4.108 3.962 3.824 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5324 5.092 4.876 4.675 4489 4.315 4.153 4001 3.859 8.851 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4357 4.189 4.033 3.887 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 8201 7.702 7.250 6.840 6.467 6.128 5818 5534 5.273 5033 4.812 4.608 4.419 4.243 4.219 4059 3910 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5584 5316 5070 4.843 4.635 4.442 4.263 8.514 7.963 7.469 7.025 6.623 6.259 5.929 5.628 | 5353 5.101 4.870 4.657 4.460 4.279 4.110 14.029 12 821 10.836 10.017 9.292 3.954 8.649 8.075 7562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 14.451 13.163 12.042 11.061 10.201 9.442 4675 4476 4.292 4.121 3.963 8.772 8.176 7.645 7.170 6.743 6.359 6011 5.696 5410 5.149 4.909 4.690 4.488 4.302 4.130 | 3.970 14.857 13.489 | 12.303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6.792 6.399 6044 5.723 5432 5.167 4925 4.703 4499 4311 15.247 13.799 12.550 11 469 10.529 9.707 8.985 4.137 3.976 8.348 7.784 7.283 6.835 6434 6.073 5.746 5.451 5.182 15.622 14.094 12.783 11.654 10.675 4937 4.713 4507 4318 4.143 3.981 9077 8422 7.843 7.330 6.873 | 6.464 | 6.097 5.766 5467 5.195 4.948 4.721 4514 4.323 4.147 3.985 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5,206 4.956 4,728 4.520 4.328 4.151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7409 6.935 6.514 | 6.136 | 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13,406 12.137 11.051 10.116 9.307 8.602 7.984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7470 6.983 6.551 6.166 5820 5.510 5.229 4975 4,743 4531 4.337 4.159 3.994 17.292 15.372 13.765 12.409 11.258 10.274 9427 8.694 8.055 7.496 7003 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4534 4339 4.160 3.995 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6642 6233 5871 5.548 5.258 4.997 4.760 4544 4.347 4.166 3.999 20% 22% 4.080 3.928 4.097 | 3.942 4891