In five years, when he is discharged from the Air Force, Steve wants to buy a $34,000 power boat.

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.

Required:

What lump-sum amount must Steve invest now to have the $34,000 at the end of five years if he can invest money at: (Round your final answer to the nearest whole dollar amount.)

Six percent :

Twelve Perent: