Mark Ventura has just purchased an annuity to begin payment two years from today The annuity is for $31,000 per year and is designed to last 9 years If the interest rate for this problem calculation is 11 percent, what is the most he should have paid for the annuity Use Appendix Band Anpendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Mimum payment $ 154.638 26 Appendix Present value of $1. PV PV IN 9 Period 1 2 3 4 5 6 2 IN 0.990 0.980 0.971 0.951 0.951 0.942 0.933 0.923 0914 0905 8 9 10 19 2 0.980 0.961 0.942 0924 0906 0.888 0871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0743 0728 0.714 0.700 0.686 0.673 0610 0.552 0,453 0,372 12 0.887 0879 3 0.971 0.943 0.915 OBBA 0.863 0837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0:582 0.570 0.554 0.478 0.412 0302 0228 4 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0577 0.555 0,594 0.513 0.494 0.475 0.456 0.375 0 308 0208 0:14 5 0.952 0.907 0864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 0.585 0.557 0530 0.505 0.481 0.458 0.436 0.416 0.396 0.322 0.295 0231 0 142 0.08 Percent ON 7 0.943 0.935 0.890 0.873 0.840 0.816 0.792 0.763 0.747 0.713 0.705 0.666 0.665 0623 0.627 0.582 0.592 0.544 0.558 0.527 0.475 0.497 0.444 0.469 0415 0.442 0.388 0417 0.362 0.394 0339 0.371 0.317 0350 0:296 0.331 0277 0.312 0.258 0.233 0.184 074 0.131 0097 0057 0.054 0.034 ION 0909 0826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0319 0.290 0.263 0.239 0.218 0.198 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0500 0.463 0.429 0.397 0.368 0.340 0315 0.292 0270 0.250 0.232 0215 0146 0.00 0046 0.021 0.917 0.842 0.772 0.700 0.650 0.596 0547 0502 0.460 0.422 0388 0.350 0.326 0:299 0275 0.252 0.231 0 212 0.194 0.178 0.116 0.075 0.032 0013 11 0.901 0.812 0.731 0.650 0.593 0.535 0.482 0434 0.39) 0352 01317 0.286 0.258 0232 0 200 0.188 0170 0.153 0.138 0.124 0.074 0044 0015 0.005 13 14 12 0.893 0.797 0212 0.6.36 0.552 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0229 0 205 0.183 0.16 0.146 0.130 01.16 0.104 0.059 0.033 0011 0.003 0.820 15 16 12 0.180 18 19 20 25 30 40 50 0.861 0.853 0844 0.836 0828 0820 0.780 0942 0672 0.608 0.154 0 149 0.092 0.057 0.022 0.000 Appendix (concluded) Present value of $1 Period 13% 1 2 3 4 5 6 7 8 9 08BS 0.783 0.693 0.613 0.540 0.480 0.425 0.376 0.333 0.295 0.251 0.231 0.204 0.181 0.160 0.141 0.125 0.111 0.098 0.08? 0.047 0 026 0.008 0.002 10 11 12 14 0.872 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.305 0.270 0.237 0208 0.182 0.160 0.140 0.123 0.108 009 0.083 0.073 0.020 0005 0.001 15% 0.870 0.756 0.655 0.572 0.497 0.432 0.376 0.327 0.284 0.247 0.215 0.187 0.163 0.141 0.123 0.107 009) 000 0.070 006 0.030 0.015 0.004 000 0.862 0.743 0.541 0552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0000 0.069 0 000 0.051 0.024 0.012 0003 0.001 Ins 0855 0.731 0.624 0534 0.456 0.390 0.333 0.285 0.243 0.208 0.178 0.152 0.130 0.111 0095 0001 0.069 0.059 0.051 0.043 0020 0.009 0002 18% 0.847 0.718 0.609 0515 0.437 0370 0314 0.266 0225 0.191 0.162 0.137 0.116 0.099 0.084 0071 0060 0051 0043 0037 0016 0007 0001 0 Percent 19% 0.840 0706 0.593 0.499 0419 0352 0.296 0249 0.209 0.176 0.148 0.124 0.100 o088 0074 0062 0.052 004 0.037 0.031 0013 0.009 0.001 20% 0.833 0.694 0.579 0482 0.402 0.335 0.279 0233 0.194 0.162 0.135 0.112 0.003 0078 006 0054 0.045 0.038 0031 0.020 0.010 000 000 25 0640 0512 0410 0.328 0.262 0210 0.168 0.134 0.107 0.086 0.069 0055 0044 0.028 0.023 0.014 0.012 0.004 0.001 30 0.769 0592 0.455 0350 0.269 0.207 0.159 0.123 0.094 0073 0.056 0.043 001) 0.025 0.020 0.015 0.012 0 000 0.007 000s 0001 35% 0.741 0.549 0.406 0301 0.223 0.165 0.122 0.091 0.057 0.050 0.037 0.027 0.020 0.015 001 0.008 0.006 0.005 0.003 0.002 0001 0 40 0.714 0510 0.364 0.260 0.186 0.133 0.095 0 000 0.048 0.035 0.025 0.018 0013 0.009 0006 0 000 0.003 0002 0002 000 50% 0.667 0.444 0.296 0.198 0.132 0.000 0.059 009 0.026 0.017 0.012 0.008 Ooos 0.003 0.002 0.002 0.001 0.001 13 14 15 16 17 19 20 25 30 40 50 o o o o o o o o o o 9 o o o o 0 o 0 Appendix D Present value of an annuty of $1. PVA PV 41- Percent Period 3% 1 2 3 4 15 6 7 9 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7652 8.566) 9.471 10.368 11.255 12.134 13,004 13 865 14.718 15.562 16.398 17.226 18.046 22.023 25.808 32.835 39.196 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 2 0.980 1.942 2.884 3.808 4.713 5.601 6.472 1125 8.162 8.983 9,787 10.575 11.348 12. 106 12 849 13.578 14.292 14.992 15.678 16.351 19.523 22396 27.355 31424 0.971 1.913 2.829 3.712 4.580 5.417 6.230 7020 7.786 8.530 9.253 9.954 10.635 11.296 11.938 12561 13.166 13.754 14324 14.877 17 413 19.600 23.115 25.730 0962 1.886 2775 3630 4452 5.242 6.002 6.733 7.435 8.111 8760 9385 9.986 10.563 11.118 11652 12.166 12659 13.134 13.590 15.622 17.292 19.793 21.482 5% 0952 1859 2.723 3546 4329 5.076 5.786 6.463 7.108 7.722 8.306 8.863 9394 9.899 10380 108.38 11274 11690 12.085 12 462 14094 15372 17 159 18 256 0.935 1808 2.624 3.387 4.100 4.767 5.389 5.971 6.515 7024 7499 7943 8.358 8.745 9.108 0.943 1333 2673 3.465 4.212 4.917 5582 6.210 5.802 7360 7887 8 384 8.853 9.295 9.712 10.106 10.477 10.828 11.158 11:470 12.783 13.765 15.046 55.762 0.926 1.783 2577 3.312 3.993 4.623 5.206 5.747 5.247 6.710 7.139 7.536 7.904 8.244 8.559 8851 9.122 9372 9.604 9818 10675 11.258 11.925 12.233 0917 1.759 2531 3.240 3090 4.486 5033 5.535 5.995 6.418 6 805 7.161 7487 7.786 8.061 8313 8.544 8756 8950 9.129 9523 10.274 10.757 10.962 10 0909 1.736 2487 3.170 3.791 4.355 4868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 7824 8022 8.201 8.365 8514 9077 9.427 9.779 9.915 0901 1.713 2444 3.102 3.696 4.231 4.712 5.146 5.537 5889 6207 6.492 6.750 6.982 7.191 7379 7.549 7.702 7839 7.963 8.422 94 8.955 9042 10 0.893 1.690 2.402 3037 3605 4.111 4.564 4968 5.328 5.650 5.935 6.194 6424 6.628 6811 1974 7.120 7.250 7360 7.469 7843 8055 8244 8.104 9.763 10.059 10336 10 594 11.654 12.409 13.332 13.901 Appendix D (concluded) Present value of an annuty of $1 Period 17 40% 1 2 3 4 7 13 0885 1.668 2.361 2974 3517 3.998 4.423 4.799 5.132 5.426 5.687 5.918 6.122 6302 6.462 6.604 6.720 6.840 6.938 7,025 7.330 7496 7634 7.675 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 0877 1.647 2.322 2.914 7.433 3.889 4288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6142 6.265 6.373 6.467 6.550 6.623 6.873 7003 7105 7133 15% 0.870 1.626 2.283 2855 3.352 2.784 4.160 4.487 4.772 5.019 5.234 5:421 5.583 5.724 5.847 5.954 5047 6.128 6.198 6259 6464 6566 6642 6661 16 0.862 1.505 2.246 2.798 1274 3.685 4039 4.344 4.607 4833 5.029 5.197 5342 5.468 5.575 5.668 5749 5.818 5877 5929 6097 6.177 6233 6.245 0855 1.585 2210 2743 3.199 3.589 3.922 4 207 4451 4659 4836 4988 5.118 5229 5.324 5.405 5475 5.534 5584 51628 5.766 5829 5871 5880 Percent 19% 0.840 1.547 2.140 2.639 3050 3.410 1706 3954 4.163 4339 4.486 4611 4.715 4802 4876 4938 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4078 4.303 4494 4656 4.793 4910 5.000 5092 5.162 5222 5273 5316 20% 0.833 1.528 2105 2589 2.951 3.326 3.605 3837 4031 4.192 4327 4,439 4533 4611 4.675 4.730 4.775 4812 4843 4.870 4.943 4.979 4997 4.999 25% 0.800 1.440 1.952 2362 2609 2.951 3.161 3.329 3.463 3.571 3656 3.725 3.780 3824 3859 3887 3910 3.928 3.942 3.954 3.985 3.995 3999 4.000 30 0.769 1.361 1816 2166 2436 2643 2802 2925 3.019 3092 3.147 3.190 3.223 3249 3.268 3283 3.295 3.304 3311 3316 3329 3332 3333 3333 35% 0.741 1.289 1.696 1.997 2220 2385 2.508 2598 2665 2.715 2.752 2779 2.799 2814 2.825 2.834 2840 2844 2343 2950 2.856 2857 2952 2.857 0.714 1.224 1.589 1849 2035 2.168 2.263 2331 2379 2.414 2438 2456 2.469 2.478 2.484 2.489 2.492 2.494 2.496 2.497 2499 2500 2.500 2.500 son 0.667 1.111 1407 1.505 1.737 1824 1883 1.922 1.948 1.965 1977 1.985 1.990 1993 1995 1997 1998 1999 1999 1999 2000 2.000 2000 2000 5.467 5.517 5.548 5.556 5033 5070 5.101 5.195 5.235 5258 5.262