Question 1.

A. B.

Future Value of $1 Periods 4% 1.040 1.082 5% 6% 7% 8% 9% 10% 12% 14% 16% 1.060 1.124 1.070 1.140 1,300 1 1.050 1.103 1.158 1.080 1.090 1.100 1.210 1.120 1.254 1.160 2 1.145 1.166 1.188 1.346 1.191 1.405 3 1.125 1.170 1.225 1.311 1,403 1.260 1,295 1.331 1.464 1,482 1.561 1.811 2.100 1.689 1.925 4 1.216 1.262 1.360 1.412 1.574 1.338 1,539 5 1.217 1.276 1.469 1,611 1.762 1.772 1.949 1.265 1.316 2.195 2.502 2.853 2.436 2.826 3.278 6 1.340 1,419 1.501 1.587 1.677 1.974 1.407 1.504 1.606 7 1.714 1.828 2.211 1.993 2.476 8 1.369 1.477 1.594 1.718 1.851 1.999 2.144 1,423 1,480 2.172 2.773 3.252 3.707 1.551 1.689 1.791 1.838 2.358 3.803 4.411 10 1.629 1.967 2.159 2.367 2.594 3.106 Future Value of Annuity of $1 Periods 1 4% 1.000 2.040 5% 1.000 2.050 6% 1.000 2.060 7% 1.000 2.070 8% 1.000 9% 1.000 2.090 10% 1.000 12% 14% 16% 1.000 2.160 3.506 5.066 6.877 8.977 1.000 1.000 2 2.080 2.100 2.120 2.140 3.184 4.375 5.637 6.975 8.394 9.897 11.491 3.122 4.246 5.416 6.633 3.153 4.310 5.526 6.802 8.142 9.549 11.027 3.215 4.440 5.751 7.153 8.654 10.260 3.246 4.506 5.867 3.278 4.573 5.985 7.523 9.200 11.028 13.021 15.193 3.310 4.641 6.105 7.716 9.487 3.374 4.779 6.353 8.115 10.089 12.300 3.440 4.921 6.610 8.536 4 5 7.336 8.923 6 7 7.898 9.214 10.730 13.233 16.085 19.337 11.414 11.436 13.579 15.937 10.637 12.488 14.487 14.240 17.519 21.321 10.583 12.006 11.978 13.816 14.776 10 12.578 13.181 17.549 Present Value of $1 Periods 1 2 4% 0.962 5% 0.952 0.907 0.864 6% 0.943 0.890 7% 0.935 8% 0.926 0.857 10% 0.909 0.826 0.751 12% 0.893 0.797 14% 0.877 0.769 16% 0.862 0.743 0.925 0.873 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.816 0.675 0.592 0.519 0.641 0.840 0.792 0.747 0.794 0.735 0.681 0.712 0.636 0.567 0.823 0.784 4 0.763 0.713 0.666 0.623 0.582 0.544 0.508 0.683 0.621 0.552 0.476 5 6 7 8 0.746 0.711 0.677 0.645 0.705 0.665 0.627 0.630 0.583 0.540 0.564 0.513 0.467 0.424 0.507 0.452 0.404 0.456 0.410 0.354 0.305 0.263 0.227 0.400 0.351 0.308 0.270 0.592 0.500 0.463 0.361 0.322 10 0.614 0.558 0.386 Present Value of Annuity of $1 8% 0.926 5% 0.952 1.859 10% 12% Periods 4% 6% 0.943 1.833 7% 14% 16% 0.935 0.893 1.690 0.877 0.862 1 0.962 0.909 1.736 1.605 2 1.886 1.808 1.783 1.647 2.673 2.577 3.312 2.322 2.914 2.723 2.624 2.487 2.246 3 2.775 2.402 3.630 4.452 5.242 4 3.546 3.465 3.387 3.170 3.037 2.798 3.605 3.433 3.889 4.288 4.329 5.076 4.100 3.993 4.623 5.206 5.747 4.212 3.791 3.274 4.355 4.917 5.582 6.210 6.802 6 4.767 4.111 3.685 4.039 7 6.002 5.786 5.389 4.868 4.564 5.971 6.515 7.024 8 6.733 6.463 7.108 5.335 5.759 4.968 5.328 5.650 4.639 4.946 5.216 4.344 4.607 7.435 6.247 7.722 4.833 10 8.111 7.360 6.710 6.145 How much must you invest today in order to receive $10,000 at the end of each year for the next 8 years assuming you can earn 5 percent interest? Please use the table provided under the EC Time Value of Money Module otherwise you may be marked wrong due to rounding. You invest $ 2,000 at the end of each year for the next 3 years. Calculate the value of the investment at the end of 3 years assuming you earn 6% interest. Please use the table provided under the EC Time Value of Money Module otherwise you may be marked wrong due to rounding