In seven years, when he is discharged from the Air Force, Steve wants to buy an $15,000 power boat.

Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables.

Required:

What lump-sum amount must Steve invest now to have the $15,000 at the end of seven years if he can invest money at: (Use the appropriate table to determine the discount factor(s).)