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 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 $15,000 at the end of seven years if he can invest money at:

10%:

12%:

(Round your final answers to the nearest whole dollar amount.)