In eight years, when he is discharged from the Air Force, Steve wants to buy a...

Transcribed Image Text:

In eight years, when he is discharged from the Air Force, Steve wants to buy a $20,000 power boat. Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $20,000 at the end of eight years if he can invest money at: (Round your final answer to the nearest whole dollar amount.) 1. Eight percent 2. Twelve percent Present Value In eight years, when he is discharged from the Air Force, Steve wants to buy a $20,000 power boat. Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $20,000 at the end of eight years if he can invest money at: (Round your final answer to the nearest whole dollar amount.) 1. Eight percent 2. Twelve percent Present Value