In six years, when he is discharged from the Air Force, Steve wants to buy a $14,000 power boat.

Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using tables.

Required:

What lump-sum amount must Steve invest now to have the $14,000 at the end of six years if he can invest money at:

Note: Round your final answer to the nearest whole dollar amount.

\begin{tabular}{|l|l|} \hline & \multicolumn{1}{c|}{ Present Value } \\ \hline 1. Nine percent & \\ \hline 2. Eleven percent & \\ \hline \end{tabular}