Present Value of Annuity of $1 1 0.893 1.690 2.402 3.037 3.605 0.877 1.647 2.322 2.914 3.433 0.862 1.605 2.246 2.798 3.274 0.847 1.566 2.174 2.690 3.127 0.833 1.528 2.106 2.589 2.991 us 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 4.111 4.564 4.968 5.328 5.650 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 5.938 6.194 6.424 6.628 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 6.811 7.469 7.843 8.055 8.244 6.623 6.873 7.003 7.105 5.929 6.097 6.177 6.233 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 the Present Value of $1 1 0.990 0.980 0.971 0.961 0.951 2 3 4 5 0.980 0.961 0.942 0.924 0.906 0.971 0.943 0.915 0.888 0.863 0.962 0.925 0.889 0.855 0.822 0.952 0.907 0.864 0.823 0.784 0.943 0.890 0.840 0.792 0.747 0.926 0.857 0.794 0.735 0.681 0.909 0.826 0.751 0.683 0.621 0.893 0.797 0.712 0.636 0.567 0.877 0.769 0.675 0.592 0.519 0.862 0.743 0.641 0.552 0.476 0.833 0.694 0.579 0.482 0.402 use 6 7 8 9 10 0.942 0.933 0.923 0.914 0.905 0.888 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 0.672 0.804 0.788 0.773 0.758 0.743 0.673 0.610 0.552 0453 0.722 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.307 0.650 0.625 0.601 0.577 0.555 0.350 0.319 0.290 0.263 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.312 0.233 0.174 0.097 0.429 0.397 0.368 0.340 0.315 0.287 0.257 0.229 0.205 0.183 0.104 0.059 0.033 0.011 0.237 0.208 0.182 0.160 0.140 0.195 0.168 0.145 0.125 0.108 0.239 20 25 30 40 0.456 0.375 0.308 0.208 0.377 0.295 0.231 0.142 0.215 0.146 0.099 0.046 0.149 0.092 0.057 0.022 0.073 0.038 0.020 0.005 0.051 0.024 0.012 0.003 0.037 0.016 0.007 0.001 0.026 0.010 0.004 0.001 he N 1.000 2040 3.172 4.246 5.416 1.000 2000 3246 4.506 5.967 1000 2.100 3.310 4.64] 6.105 1.000 2.120 3.374 4.779 6.353 5 TE 6.633 7898 7 6 0 10 1.000 1.000 1.000 2010 2020 2020 3.030 3.060 3.091 4.060 4.122 4.184 5.10] 5.204 5.300 158 6.308 6.468 7.214 7.434 7662 5.26 8.53 8.92 9.369 9755 10 19 10.482 10.950 11.44 11.567 12.166 12 B08 12.683 13.412 14.12 13.80 4. 650 15.616 14.947 15.974 17.06 16.097 17 293 18.59 2019 24.297 26.870 28.23 32030 3.459 34.75 40 5AB 47.575 4. BBS 80.402 75.40] 1.CO0 2060 3.153 A.310 5.526 5.802 4.12 9.540 11.027 12.578 14 207 15.917 17.713 19.599 21.579 33.066 47.727 6.499 120.800 1.000 2060 13.184 4.375 5.637 6975 B394 9897 11.491 13.161 4972 16 470 18. B62 21.015 23.276 6.786 4.65 79.05 154.62 9214 10.583 12.006 13486 15026 16.27 18.292 20.024 29.77% 41,646 56.08 5.05 1336 8923 10.637 12498 14.447 16 645 18977 21495 24 215 27 16 TT16 9437 11.436 13.579 15937 16.31] 21.314 24.523 27.975 31.772 7.75 98.347 164.494 442.593 12 13 1 14 1.000 1.000 1.000 1.000 2.140 2.160 2.120 2200 3440 3.506 3.572 3.640 4.921 5.066 5.215 5.360 6.610 6.87 714 7442 8536 8.977 9442 9930 10.730 11.414 12.142 12.976 13233 14.240 15.327 16.499 16.085 17.519 19.0% 200799 | 19.337 21.321 23.521 25.959 23 045 25.733 247656 32.150 27271 30 850 39.581 32.09 36.786 42219 4B 497 37.591 436 50 819 59.196 3.44 51.660 60.565 2.035 91025 15.380 145.62B 186 668 141.871 249214 342.603 471,931 356.787 5930 312 750 940 1.181.62 1.342.025 2360.757 | 4.163213 7.343.858 6.115 10.099 12:00 14.76 17.549 20 655 24.130 20029 32.393 37 280 052 133.334 241.333 E7091 34 931 20 25 30 45.72 73 106 113 212 256.057 2 L.3 1,020 1.040 1.06] 11.082 1104 1.030 1.78] 1093 1.12% 1.159 1.040 1.022 1.125 1.170 1217 1050 103 118 1.2% 1.276 1.60 1.12 1.191 126 1336 1.00 11 1 200 1 1A 1.100 1210 1331 1464 1611 1.140 1.300 1462 1.69 195 5 1.01 1020 1.020 1.041 1.051 1.062 107 11.063 1094 11 1765 1.126 1.149 11T 1.165 1219 1.14 200 126) 1.305 1.3.4 13] 1169 1.423 1.40 1.30 1.407 1.4TY 1.1 1629 1.419 1504 1.39 1.6 1.79] 1.587 1.714 151 1,999 2.159 TATTE 1949 2.14 2358 2594 1120 1254 1.405 1.574 1.762 11.974 2211 2.475 2.773 3.106 3.479 1996 360 B 5474 9.64% 17.00 , DO 3 05 21 2 2853 3252 377 9 0 1.160 1180 1200 1.346 1.392 40 1561 1649 1729 1.81] 1939 204 2.100 229 2498 24.36 2.70 296 2326 3.185 3.583 3278 2. 50 1.300 3.203 1.435 5.160 4.411 5.234 6.192 5.117 6. 176 74.10 5.936 72 3.916 6.46 599 10.6919 1946 10.147 12.899 9.266 11.974 15.407 19.46 27 2303 30.360 40 674 62 69 95 15.450 140.17] 237376 37 21 750.37 1.469 772 - 19 12 13 14 15 20 % 2 1.116 127 1.138 1942 1.161 1 220 12 1348 149 1243 12 12/04 1.316 1.345 14 11 1.811 22 1.26 1,426 1.40 1.513 1.558 1 B06 2004 2.42 3262 1.439 1601 1665 1732 1.80 | 2191 2.06 3243 8011 1.7 10 1.76 16 1,000 2.079 2.65] 3.306 4.322 7C40 2012 2133 2261 2397 3207 49 5743 1026 2332 2.51 2.720 2997 3.172 4,6 64 100M) 21725 2853 3.10 3.4g 3797 4.177 6727 10 B35 17AM) 45 269 4.226 43] 5.49 6261 7138 13.743 26.42 0960 100 414 13 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. $8,750 a year at the end of each of the next eight years 2. $49,650 (lump sum) now 3. $100,050 (lump sum) eight years from now Calculate the present value of each scenario using a 6% interest rate. Which scenario yields the highest present value? Would your preference change if you used a 10% interest rate? (Click the icon to view the present value annuity factor table.) (Click the icon to view the present value factor table.) (Click the loon to view the future value annuilty factor table.) (Click the icon to view the future valuo factor table.) Using a 6% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar.) Present value Scenario 1 Scenario 2 Scenario 3 Which scenario yields the highest present value? appears to be the best option. Based on a 6% interest rate, its present value is the Using a 10% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest 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