Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.980 0.962 0.893 0.990 0.971 0.952 0.943 0.935 0.926 0.917 0.909 0.877 0.870 0.862 0.847 0.833 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 2 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 O.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 O.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.906 0.822 0.713 0.650 0.621 0.497 0.402 5 0.951 0.863 0.784 0.747 0.681 0.567 0.519 0.476 0.437 0.888 0.837 0.790 0.746 0.705 0.630 0.596 0.410 0.335 6 0.942 0.666 0.564 0.507 0.456 0.432 0.370 0.933 0.760 0.711 0.665 0.583 0.547 0.513 0.452 0.376 0.354 0.314 0.279 7 0.871 0.813 0.623 0.400 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 0.914 0.592 0.361 9 0.837 0.766 0.703 0.645 0.544 0.500 0.460 0.424 0.308 0.284 0.263 0.225 0.194 0.905 10 0.820 0.676 0.558 0.422 0.386 0.322 0.191 0.162 0.744 0.614 0.508 0.463 0.270 0.247 0.227 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 0.879 0.681 0.601 0.530 0.290 0.229 13 0.773 0.469 0.415 0.368 0.326 0.182 0.163 0.145 0.116 0.093 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.263 0.205 0.160 0.141 0.125 14 0.340 0.299 0.099 0,078 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.252 0 231 16 0.853 0.728 0 714 0.623 0.534 0.458 0.394 0.339 0.292 0.218 0.163 0 146. 0.123 0.107 0.093 0.071 0.054 0 045. 0 270. 0 436. 0.844 0 198 0.093 17 0.605. 0.513 0.371 0.317 0.108 0.080. 0.060 0.371 0.060 17 0.844 0.714 0.605 0.513 0.436 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.045 18 0.836 0.700 0.416 0.296 0.130 0.095 0.081 0.038 0.587 0.494 0.350 0.250 0.212 0.180 0.069 0.051 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 20 0.820 0.673 0.554 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.026 0.456 0.037 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 23 0.634 0.795 0.507 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 24 0.066 0.043 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.035 0.028 0.019 0.013 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.016 0.010 0.024 26 O.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 0.047 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.029 0.023 0.018 0.011 0.007 28 0.574 0.437 0.333 0.321 0.196 0.150 0.069 0.042 0.026 0.020 0.010 0.757 0.255 0.116 0.090 0.016 0.006 29 0.749 0.563 0.424 0.243 0.185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.008 0.005 0.014 30 0.742 0.552 0.412 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.033 0.020 0.015 0.012 0.007 0.004 0.208 40 0.307 0.046 0.011 0.005 0.001 0.672 0.453 0.142 0.097 0.067 0.032 0.022 0.004 0.003 0.001 50 0.608 0.228 0.087 0.054 0.034 0.021 0.003 0.001 0.001 0.001 0.372 0.141 0.013 0.009 Present Value of Ordinary Annuity of $1 Periods 1% 3% 4% 5% 7% 8% 9% 12% 14% 15% 16% 18% 20% 2% 6% 10% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.566 1.528 2 1.605 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 6.728 6.472 6.230 7.020 6.002 5.786 6.463 5.582 6.210 5.389 5.206 5.033 4.868 4.564 4.288 4.639 4.160 4.039 3.812 3.605 7 7.652 6.733 5.335 4.968 4,487 4.078 3.837 7.325 5.971 5.747 5.535 4.344 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 9.471 8.530 8.111 7.722 7.360 6.710 6.418 5.650 5.216 5.019 4.833 4.494 4.192 10 8.983 7.024 6.145 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 11.255 10.575 9.954 8.384 8.853 5.660 5.842 4.793 4.910 4.439 12 9.385 8.863 7.943 7.536 7.161 6.814 6.194 5.421 5.197 10.635 9.986 11.296 10,563 11.938 11.118 13 11.348 9.394 7.904 7,487 7.103 6.424 5.583 4,533 12.134 8.358 5.342 14 13.004 12.106 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 13.865 12.849 8.559 7.606 6.142 5.092 4.675 15 10.380 9.712 9.108 8.061 6.811 5.847 5.575 14.718 13.57812.561 11.652 10.838 10.106 16 9.447 8.851 8.313 7,824 6.974 6.265 5.954 5.669 5.162 4.730 15.562 14.292 13.166 12.166 11.274 10.477 9.763 17 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 14.992 13.754 17.226 15.678 14.324 13.134 18.046 16.351 14.877 11.690 10.828 10.0599.372 12.085 4.812 18 16.398 12.659 8.756 8.201 7.250 6.467 6.128 5.818 5.273 11.158 10.336 19 9.604 8.950 8.365 8.514 7.366 6.550 6.198 5.316 4.844 5.877 20 13.590 9.818 9.129 7.469 6.623 6.259 5.929 5.353 4.870 12.462 11.470 10.594 17.011 15.415 14.029 12.821 17.658 15.937 11.764 10.836 10.017 21 18.857 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 22 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 6.011 5.410 4.909 19.660 11.272 10.371 13.799 12.550 11.469 |10.529 11.654 13.489 12.303 20.456 18.292 16.444 14.857 23 9.580 8.883 7.718 6.792 6.399 6.044 5.432 4.925 18.914 16.936 15.247 19.523 17.413 4.937 4.948 24 21.243 9.707 8.985 7.784 6.835 6.434 6.073 5.451 6.873 6.464 25 22.023 15.622 14.094 12.783 10.675 9.823 9.077 7.843 6.097 5.467 22.795 20.121 | 17.877 23.560 20.707 18.327 15.983 14.375 | 13.003 11.826 10.810 4.956 26 9.929 9.161 7.896 6.906 6.491 6.118 5.480 11.987 10.935 10.027 24.316 21.281 | 18.76416.663 14.898 | 13.406 12.13711.051 10.116 13.591 12.27811.158 10.198 15.372 13.765 12.409 11.258 10.274 27 16.330 14.643 13.211 9.237 7.943 6.935 6.514 6.136 5.492 4.964 28 9.307 7.984 6.961 6.534 6.152 5.502 4.970 21.844 19.188 16.984 25.808 22.396 19.600 | 17.292 29 8.022 6.983 4.975 25.066 15.141 9.370 6.551 6.166 5.510 30 9.427 8.055 7.003 6.566 6.177 5.517 4.979 32.835 27.355 23.115 19.793 17.159 | 15.046 11.925 10.757 | 9.779 40 13.332 8.244 7.105 6.642 6.233 5.548 4.997 39.196 31.424 25.730 21.48218.256 15.762 | 13.801 | 12.233 | 10.962 50 9.915 8.304 7.133 6.661 6.246 5.554 4.999 Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $8,550 per year at the end of each of the next eight years 2. $48,350 (lump sum) now 3. $98,500 (lump sum) eight years from now (Click the icon to view Present Value of $1 table.) EClick the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. Calculate the present value of each scenario using a 6% discount rate. Which scenario yields the highest present value? (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Present Value Scenario 1: Scenario 2: Scenario 3 appears to be the best option. Based on a 6% interest rate, its present value is the Requirement 2. Would your preference change if you used a 10% discount rate? Compute the present value of each scenario using a 10% discount rate. (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Present Value Scenario 1: Scenario 2: Scenario 3: appears to be the best option. Based on a 10% interest rate, its present value is the Enter any number in the edit fields and then continue to the next