Present Value of Annuity of $1 TABLE 11.4A Periods* 4.25% 0.9592 1.8794 2.7620 0.9524 1.8594 2.7232 0.9639 0.9259 1.7833 2.5771 3.3121 3.9927 0.9709 0.9615 0.9346 1.8334 2.6730 3.4651 2.8839 2.8286 2.7883 2.7751 2.6243 44833 5.2851 6.0579 6.8028 4.1002 4.7665 5.3893 5.9713 6.5152 7.0236 10.5940 4.4207 5.1997 5.9470 6.6638 5.6014 6.4720 7.3255 8.1622 8.9826 16.3514 5.0757 5.7864 6 5.2421 6.0021 6.7327 7.4353 4.9173 5.5824 6.2098 6.8017 6.2303 7.0197 7.7861 8.5302 14.8775 5.2064 5.7466 6.2469 8 8.2128 13.8962 20 13.5903 13.2944 12.4622 11.4699 9.8181 Periods* 0.9091 1.7355 2.4869 0.9174 1.7591 2.5313 3.2397 3.8897 0.8929 1.6901 2.4018 3.0373 0.8772 1.6467 2.3216 2.9137 3.4331 3.8887 4.2883 4.6389 4.9464 5.2161 6.6231 0.8696 1.6257 2.2832 2.8550 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 1.7125 2.4437 3.1024 3.6959 4.2305 1.6681 2.3612 2.9745 3.5172 3.9975 4.4226 4.7988 2.3616 3.7908 3.7845 5.0330 5.5348 5.9952 4.8684 5.3349 5.7590 4.9676 5.3282 4.4873 4.7716 5.0188 6.2593 5.5370 5.8892 3.4631 3.5705 3.9539 5.4262 7.0248 7.4694 4.8696 20 9.1285 8.5136 * There is one payment each period Future Value of an Annuity of $1 TABLE 11.3A en 2.0700 3.2149 2.0200 2.0300 2.0375 2.0425 3.1293 4.2623 5.4434 6.6748 7.9585 9.2967 10.6918 2.0500 2.0800 3.2464 4.5061 3.1836 4.3746 5.6371 6.9753 8.3938 9.8975 11.4913 3.1216 4.2465 5.4163 6.6330 7.8983 9.2142 10.5828 12.0061 29.7781 4.1216 4.2307 5.3893 6.5914 7.8386 4.3101 5.5256 6.8019 8.1420 9.5491 11.0266 12.5779 33.0660 4.1836 5.3091 6.4684 4 5.7507 6.3061 7.4343 8.5830 9.7546 10.9497 24.2974 7.3359 8.8923 10.1591 10.2598 11.9780 13.8164 0.9955 10.6366 12.4876 10.4750 11.8678 26.8704 20 30.5625 36.7856 45.7620 en 2.2500 3.8125 5.7656 8.2070 11.2588 15.0735 19.8419 25.8023 33.2529 342.9447 2.1300 3.4069 4.8498 6.4803 8.3227 10.4047 12.7573 15.4157 18.4197 80.9468 2.1400 3.4396 4.9211 6.6101 2.1500 3.4725 4.9934 6.7424 8.7537 3.2781 4.5731 5.9847 7.5233 3.3744 4.7793 6.3528 3.3100 4.6410 3.3421 4.7097 6.2278 .9129 9.7833 4 7.4416 9.9299 12.9159 16.4991 20.7989 25.9587 186.6880 7.7156 9.4872 11.4359 13.5975 15.9374 10.0890 12.2997 14.7757 17.5487 72.0524 10.7305 13.2328 16.0853 19.3373 91.0249 11.0285 13.0210 15.1929 51.1601 13.7266 16.7856 20.3037 102.4436 16.7220 57.275064.2028 20 *There is one payment each period Present Value of $1 TABLE 11.2A Periods 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.9259 0.8573 0.7938 0.7350 0.9709 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.9639 0.9290 0.8954 0.8631 0.8319 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.9346 0.9201 0.8826 0.9612 0.9246 0.8890 0.8548 0.8219 0.7903 0.8163 4 0.9238 0.9057 0.8880 0.8706 0.8535 0.8368 0.8203 0.7790 0.7473 0.7168 0.6876 0.6595 0.4350 0.6302 0.5835 0.5403 0.5002 0.4632 0.7728 0.7449 0.6227 0.6768 0.6446 0.7307 0.5439 0.5083 0.6920 0.6756 0.4564 0.3769 0.5537 Periods 9% 0.8772 0.7695 0.8929 0.7972 0.7118 0.6355 0.5674 0.8850 0.7831 0.6931 0.6133 0.5428 0.4803 0.4251 0.3762 0.3329 0.2946 0.9091 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.8333 0.8116 0.7312 0.6587 2 0.8417 0.7722 0.7084 0.6499 0.5963 0.7513 0.6830 0.5787 0.4823 0.5921 0.5346 0.4817 0.4339 0.3909 0.3522 0.1240 0.5645 0.5132 0.4665 0.4241 0.3855 0.3349 0.2621 0.2097 0.1678 0.1342 0.1074 0.3996 0.3506 0.3075 0.2697 0.0728 0.5019 0.2326 0.4039 0.4224 0.1784 0.2472 0.0611 0.0261 0.1037 20 51487 3114 25940879437 593 24704952113 6 7898 36 0 25 2 5 685 2 703 11234 5 334 56531153 504 9158277 2 5 5 37 1 2 4 6 8 0 36035 2 000 .1 1 2 2 3 3 4 5 2 3 26161 11223 7 5792471 712 1611 785 5 975 341744592 12346791357 01567 4 59 241 2 1 80247918 1372 4568 01234567890 01234567890 After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company. It has arrived with the good news that you are the big winner, having won $21 million. You have three options (a) Receive $1.05 million per year for the next 20 years. (b) Have $8.25 million today. (c) Have $2.25 million today and receive $750,000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments. Required 1. Calculate the present value of each option. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of S1.) (Use appropriate factor(s) from the tables provided. Enter your answers in dollars, not in millions.) Present Value Option A Option B Option C