Present Value and Future Value of a Lump Sum 1. Amount desired at Time end of (years) Rate #of Interst Interest Compounded Periods PVIF PV Rate/Period riod 6,000 $8,900 Semi-annual Monthl Quarter Annuall 3% | 6% | 4 years 17,600 | 7 months | 12% 20,000 | 20 years | 8% 2. Greg Lawrence anticipates he will need approximately $218,000 in 15 years to cover his 3 year old daughter's college bills. How much would he have to invest today at an interest rate of 8% compounded semi-annually 3. Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony's bank pays 12% interest compounded semi-annually. What must Tony deposit today so he will have $60,000 in 4 years? 4. Paul Havlik promised his grandson that he would give him $6,000 8 years from today for graduating from high school. Assume money is worth 6% interst compounded semi-annually. what is the present value of this $6,000? 5. Earl wants to retire in SanDiego when he is 65 years old. Earl is now 50. He believes he will need $300,000 to retire comfortably. To date, Earl has set aside no retirement money. Assume Earl gets 6% interest compounded semi-anually. How much will he have when he is ready to retire? 6. Jackie Rich would like to buy a $19,000 Toyota car in 4 years. Jackie wants to put the money aside now. Jackie's bank offers 8% interest compounded semi-annually. How much must Jackie invest today