Sarah Altidore invested $9,000 at 10% annual interest, and left the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Sarah withdrew the accumulated amount of money. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What amount did Sarah withdraw, assuming the investment earns simple interest?
| The amount Sarah withdrew | | $ |
(b) What amount did Sarah withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, e.g. 25.25.)
| The amount Sarah withdrew | | $ |
(a) What is the present value of $30,000 due 8 periods from now, discounted at 6%? (Round answer to 2 decimal places, e.g. 25.25.)
| Present value | | $enter a dollar amount rounded to 2 decimal places |
(b) What is the present value of $30,000 to be received at the end of each of 12 periods, discounted at 12%? (Round answer to 2 decimal places, e.g. 25.25.)
TABLE 1 Future Value of 1 (n) Periods 4% 1,00000 1.04000 1.08160 1.12486 1.16986 1.21665 1.26532 1.31593 1.36857 1.42331 1.48024 1.53945 1.60103 1.66507 1.73168 1.80094 1.87298 1.94790 2.02582 2.10685 .19112 5% 6% 7% 8% 1.00000 1.00000 1.00000 1.00000 1.05000 1.06000 1.07000 1.08000 1.10250 1.12360 1.14490 1.16640 1.15763 1.191021.22504 1.25971 1.21551 1.26248 1.31080 1.36049 1.27628 1.33823 1.40255 1.46933 1.34010 1.41852 1.50073 1.58687 1.40710 1.50363 1.60578 1.71382 1.47746 1.59385 1.71819 1.85093 1.551331.68948 1.83846 1.99900 1.62889 1.79085 1.96715 2.15892 1.71034 1.89830 2.10485 2.33164 1.79586 2.01220 2.25219 2.51817 1.88565 2.13293 2.40985 2.71962 1.979932.26090 2.57853 2.93719 2.07893 2.39656 2.75903 3.17217 2.18287 2.54035 2.95216 3.42594 2.29202 2.69277 3.15882 3.70002 2.40662 2.85434 3.379933.99602 2.52695 3.02560 3.61653 4.31570 2.65330 3.20714 3.86968 4.66096 9% 1.00000 1.09000 1.18810 1.29503 1.41158 1.53862 1.67710 1.82804 1.99256 2.17189 2.36736 2.58043 2.81267 3.06581 3.34173 3.64248 3.97031 4.32763 4.71712 5.14166 5.60441 10% 1.00000 1.10000 1.21000 1.33100 1.46410 1.61051 1.77156 1.94872 2.14359 2.35795 2.59374 2.85312 3.13843 3.45227 3.79750 4.17725 4.59497 5.05447 5.55992 6.11591 6.72750 11% 12% 15% 1.00000 1.00000 1.00000 1.11000 1.12000 1.15000 1.23210 1.25440 1.32250 1.36763 1.40493 1.52088 1.51807 1.57352 1.74901 1.68506 1.76234 2.01136 1.87041 1.97382 2.31306 2.07616 2.21068 2.66002 2.30454 2.47596 3.05902 2.55803 2.77308 3.51788 2.83942 3.10585 4.04556 3.15176 3.47855 4.65239 3.49845 3.89598 5.35025 3.88328 4.363496.15279 4.31044 4.88711 7.07571 4.784595.47357 8.13706 5.31089 6.130399.35762 5.895096.86604 10.76126 6.54355 7.68997 12.37545 7.26334 8.61276 14.23177 8.06231 9.64629 16.36654 10 12 14 15 16 17 18 19 20 2 TABLE 2 Future Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1.00000 1.00000 1.00000 1.0000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2.04000 2.05000 2.06000 2.0700 2.08000 2.09000 2.10000 2.11000 2.12000 2.15000 3.12160 3.15250 3.18360 3.21493.24640 3.27810 3.31000 3.34210 3.37440 3.47250 4.24646 4.310134.37462 4.4399 4.50611 4.57313 4.64100 4.70973 4.779334.99338 5.41632 5.52563 5.637095.7507 5.86660 5.98471 6.10510 6.22780 6.35285 6.74238 6.63298 6.801916.97532 7.1533 7.33592 7.52334 7.71561 7.91286 8.11519 8.75374 7.89829 8.14201 8.39384 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34.35192 18.29191 19.59863 21.01507 22.5505 24.21492 26.01919 27.97498 30.09492 32.39260 40.50471 20.02359 21.57856 23.27597 25.1290 27.15211 29.36092 31.77248 34.40536 37.27972 47.58041 21.82453 23.65749 25.67253 27.8881 30.32428 33.00340 35.94973 39.18995 42.75328 55.71747 17 23.69751 25.84037 28.21288 30.8402 33.75023 36.97351 40.54470 44.50084 48.88367 65.07509 25.64541 28.13238 30.90565 33.9990 37.45024 41.30134 45.59917 50.39593 55.74972 75.83636 19 2 7.67123 30.53900 33.75999 37.3790 41.44626 46.01846 51.15909 56.93949 63.43968 88.21181 20 29.77808 33.06595 36.78559 40.9955 45.76196 51.16012 57.27500 64.20283 72.05244 102.44358 Not in OoOo 18 TABLE 3 Present Value of 1 (n) Periods 92593 4% 5% .96154 95238 .92456 90703 .88900 86384 .85480 82270 .82193 .78353 .79031 .74622 .75992 .71068 .73069 .67684 .70259 .64461 .67556 .61391 .64958 .58468 .62460 55684 .6005753032 .57748 50507 .55526 48102 .5339145811 .51337 43630 .49363 41552 47464 39573 .45639 3 7689 6% .94340 .89000 .83962 .79209 .74726 .70496 .66506 .62741 .59190 .55839 .52679 49697 .46884 44230 .41727 .39365 37136 .35034 33051 31180 7% 0.93458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 0.47509 0.44401 0.41496 0.38782 0.36245 0.33873 0.31657 0.29586 0.27615 0.25842 8% 9% .91743 .85734 .84168 .79383 .77218 .73503 .70843 -68058 .64993 .63017 .59627 .58349 .54703 .54027 .50187 -50025 .46043 .46319 42241 .42888 38753 _39711 .35554 36770 32618 .34046 .29925 .31524 .27454 29189 .25187 2702723107 25025 .21199 23171 .19449 2 1455 .17843 10% .90909 .82645 .75132 .68301 .62092 56447 .51316 .46651 .42410 .38554 35049 31863 28966 26333 .23939 21763 19785 17986 .16351 .14864 11% 12% 15% .90090 .89286 .86957 .81162 .79719 .75614 -73119 .71178 .65752 .65873 .63552 .57175 5934556743 .49718 .53464 50663 .43233 .48166 .45235 37594 .43393 .40388 .32690 39092 36061 28426 .35218 32197 .24719 31728 28748 .21494 28584 25668 .18691 25751 2291716253 .23199 20462 .14133 .20900 18270 .12289 .18829 1 6312 .10687 .16963 .14564 .09293 .15282 .13004 .08081 .13768 11611 .07027 12403 10367 .06110 20 TABLE4 Present Value of an Annuity of 1 (n) Payments BOUW 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% .96154 95238 94340 0.93458 92593917439090990090 .89286 86957 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.735541.71252 1.69005 1.62571 2.775092.72325 2.67301 2.62432 2.577102.53130 2.48685 2.44371 2.40183 2.28323 3.62990 3.54595 3.465113.38721 3.31213 3.23972 3.169863.10245 3.03735 2.85498 4.45182 4.32948 4.21236 4.10020 3.992713.88965 3.79079 3.69590 3.60478 3.35216 5.24214 5.075694.91732 4.76654 4.622884.48592 4.35526 4.23054 4.11141 3.78448 6.00205 5.78637 5.58238 5.38929 5.206375.03295 4.86842 4.71220 4.56376 4.16042 6.73274 6.463216.20979 5.97130 5.746645.53482 5.33493 5.14612 4.96764 4.48732 7.435337.10782 6.801696.51523 6.24689 5.99525 5.759025.53705 5.32825 4.77158 8.11090 7.721737.360097.02358 6.71008 6.41766 6.144575.88923 5.650225 .01877 8.76048 8.306417.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 9.38507 8.86325 8.383847.94269 7.53608 7.160736.813696.49236 6.19437 5.42062 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 10.56312 9.89864 9.294988.74547 8.24424 7.786157.36669 6.98187 6.62817 5.72448 11.11839 10.37966 9.71225 9.107918.55948 8.060697.606087.190876.81086 5.84737 11.65230 10.83777 10.105909.446658.85137 8.31256 7.823717.37916 6.97399 5.95424 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.021557.548797.11963 6.04716 12.65930 11.68959 10.82760 10.059099.37189 8.75563 8.2 01417.701627.24967 6.12797 13.13394 12.08532 11.15812 10.33560 9.60360 8.950128.364927.839297.36578 6.19823 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 18 20
