Laurel wants to take the next four years off work to travel around the world. She estimates her annual cash needs at $27,000 (if she needs more, she'll work odd jobs). Laurel believes she can invest her savings at 12% until she depletes her funds. (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table.) Requirements (Click the icon to view the present value table.) (Click the icon to view the future value table.) 1. How much money does Laurel need now to fund her travels? 2. After checking with a number of banks, Laurel learns she'll be able to invest her funds only at 10%. How much does she need now to fund her travels? Requirement 1. How much money does Laurel need now to fund her travels? Calculate how much money Laurel needs now to fund her travels. (Round your answers to the nearest whole dollar.) With the 12% interest rate, Laurel needs Reference Periods 1% Period 1 0.990 Period 2 1.970 Period 3 2.941 Period 4 3.902 Period 5 4.853 Period 6 Period 7 Period 8 7.652 5.795 6.728 7.325 7.020 6.733 Period 9 8.566 8.162 7.786 7.435 Period 10 9.471 8.983 8.530 8.111 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 5.786 6.463 7.108 5.076 4.917 5.582 6.210 2% 3% 4% 5% 6% 8% 10% 12% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 5.601 5.417 5.242 6.472 6.230 6.002 14% 16% 18% 20% 0.877 0.862 0.847 0.833 1.647 1.605 1.566 1.528 2.246 2.174 2.106 2.798 2.690 2.589 3.274 3.127 2.991 4.623 4.355 4.111 5.206 4.868 4.564 3.889 4.288 4.039 3.685 3.498 3.326 3.812 3.605 5.747 5.335 4.968 6.802 6.247 5.759 5.328 7.722 7.360 6.710 6.145 5.650 4.639 4.344 4.078 3.837 4.946 4.607 5.216 4.303 4.031 4.833 4.494 4.192 5.453 5.029 4.656 4.327 5.660 5.197 4.793 4.439 5.842 5.342 4.910 4.533 6.002 5.468 5.008 4.611 6.142 5.575 5.092 4.675 Print Done Reference 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 Period 5 4.853 Period 6 5.795 Period 7 6.728 Period 8 7.652 Period 9 8.566 Period 10 9.471 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 3.889 3.685 3.498 3.326 4.288 4.039 3.812 3.605 4.639 4.344 4.078 3.837 4.946 4.607 4.303 4.031 4.833 4.494 4.192 5.216 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 5.453 5.029 4.656 4.327 5.660 5.197 4.793 4.439 5.842 5.342 4.910 4.533 6.002 5.468 5.008 4.611 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 6.623 5.929 5.353 4.870 6.873 6.097 5.467 4.948 8.055 7.003 6.177 5.517 4.979 7.105 6.233 5.548 4.997 Print Done Reference Present Value of $1 Periods 1% 2% 3% Period 1 0.990 0.980 0.971 4% 0.962 Period 2 0.980 0.961 0.943 0.925 Period 3 Period 4 0.961 0.971 0.942 0.915 0.889 0.924 0.888 0.855 0.823 Period 5 0.951 0.906 0.863 0.822 0.784 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 Period 8 0.923 Period 9 Period 10 Period 11 0.896 Period 12 0.887 Period 13 0.879 0.853 0.789 0.731 0.677 0.627 0.513 0.540 0.467 0.507 0.452 0.404 0.351 0.456 0.410 0.370 0.335 0.400 0.354 0.314 0.279 0.305 0.266 0.233 0.914 0.905 0.837 0.766 0.703 0.645 0.592 0.820 0.744 0.676 0.614 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.804 0.722 0.650 0.788 0.701 0.625 0.557 0.497 0.773 0.681 0.601 0.530 0.469 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Print Done Reference Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 Period 7 0.933 0.871 0.813 0.760 0.711 Period 8 0.923 0.853 0.789 0.731 0.677 Period 9 0.914 0.837 0.766 0.703 0.645 Period 10 0.905 0.820 0.744 0.676 0.614 0.746 0.705 0.630 0.564 0.507 0.456 0.665 0.583 0.513 0.452 0.400 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.410 0.370 0.335 0.354 0.314 0.279 Period 11 0.896 0.804 0.722 0.650 0.585 Period 12 0.887 0.788 0.701 0.625 0.557 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.290 0.229 0.182 0.145 0.116 0.205 0.160 0.125 0.099 0.078 0.183 0.140 0.108 0.084 0.065 0.112 0.093 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 Period 30 0.742 0.552 Period 40 0.672 0.453 0.412 0.308 0.307 0.208 0.142 0.097 0.231 0.174 0.073 0.051 0.037 0.026 0.059 0.038 0.024 0.016 0.010 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Print Done Reference Future Value of Annuity of $1 Periods Period 1 1.000 Period 2 2.010 Period 3 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2.020 2.030 2.040 2.050 1.000 1.000 1.000 1.000 2.060 1.000 1.000 1.000 1.000 2.080 2.100 2.120 2.140 2.160 2.180 2.200 3.030 3.060 3.091 3.122 Period 4 4.060 4.122 4.184 Period 5 5.101 5.204 5.309 4.246 5.416 3.153 3.184 4.310 4.375 5.526 5.637 3.246 3.310 3.374 3.440 3.506 3.572 3.640 4.506 5.867 4.641 4.779 4.921 5.066 5.215 5.368 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 Period 7 Period 8 Period 9 Period 10 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 10.462 10.950 11.464 12.006 12.578 13.181 14.487 8.536 8.977 9.442 9.930 15.937 17.549 10.730 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 24.133 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 Print Done Reference 5.204 5.309 5.416 Period 15 Period 5 5.101 Period 6 6.152 6.308 6.468 6.633 6.975 7.336 7.716 8.115 8.536 Period 7 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 Period 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 6.802 8.977 9.442 9.930 11.414 14.240 15.327 16.499 17.519 19.086 20.799 21.321 23.521 25.959 12.142 12.916 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 37.581 43.672 50.818 59.196 43.842 51.660 60.965 72.035 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 115.380 146.628 186.688 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 91.025 Print Done Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 Period 2 1.020 1.040 1.061 1.082 1.103 Period 3 1.030 1.061 1.093 1.125 1.158 10% 12% 1.080 1.100 1.120 1.140 1.124 1.166 1.210 1.254 1.300 1.191 1.260 1.331 14% 16% 18% 20% 1.160 1.180 1.200 1.346 1.392 1.440 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.587 1.714 1.772 1.974 2.195 2.436 2.700 2.986 Period 8 1.083 1.172 1.267 1.369 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.477 1.594 1.851 1.999 1.949 2.211 2.144 2.476 2.853 2.358 2.773 2.502 2.826 3.185 3.583 3.278 3.759 4.300 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 Period 11 1.116 1.243 1.384 1.539 1.710 1.898 2.332 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 2.518 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 2.853 3.479 4.226 3.138 3.896 4.818 3.452 4.363 5.492 5.117 6.176 7.430 5.936 7.288 6.886 8.599 10.699 8.916 Print Done Reference Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 Period 11 Period 12 1.127 Period 13 1.138 1.116 1.243 1.384 1.539 1.710 1.898 2.332 1.268 1.426 1.601 1.796 2.012 2.518 1.294 1.469 1.665 1.886 2.133 2.720 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.452 3.797 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 3.172 1.611 1.762 1.925 2.100 2.288 2.488 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1.714 1.949 2.211 2.502 2.826 3.185 3.583 2.144 2.476 2.853 3.278 2.358 2.773 3.252 3.803 2.594 3.106 3.707 4.411 2.853 3.479 4.226 5.117 6.176 3.138 3.896 4.818 5.936 7.288 8.916 4.363 5.492 6.886 8.599 10.699 4.887 6.261 7.988 10.147 4.177 5.474 7.138 9.266 11.974 3.759 4.300 4.435 5.160 5.234 6.192 7.430 12.839 15.407 Period 20 1.220 1.486 1.806 2.191 2.653 3.207 Period 25 1.282 1.641 2.094 2.666 3.386 Period 30 1.348 1.811 Period 40 1.489 2.208 3.262 2.427 3.243 4.801 4.661 6.727 9.646 13.743 19.461 27.393 38.338 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 4.322 5.743 10.063 10.063 17.449 29.960 | 50.950 85.850 143.371 237.376 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Print Done