In three years, when he is discharged from the Air Force, Steve wants to buy an $11,000 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 $11,000 at the end of three years if he can invest money at: (Round discount factor to 3 decimal places.)

In three years, when he is discharged from the Air Force, Steve wants to buy an $11,000 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 $11,000 at the end of three years if he can invest money at: (Round discount factor to 3 decimal places.) Present Value Investment x Discount Factor Present Value 1. Six percent 2. Twelve percent