Sarah wants to take the next four years off work to travel around the world. She estimates her annual cash needs at $32,000 (if she needs more, she will work odd jobs). Sarah believes she can invest her savings at 10% until she depletes her funds. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon (Click the icon to view Future Value of Ordinary Annuity of $1 table. view Future Value of $1 table.) Read the reguirements Requirement 1. How much money does Sarah need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 10% interest rate, Sarah needs $ Requirement 2. After speaking with a number of banks, Sarah learns she will only be able to invest her funds at 6%. How much does she need now to fund her travels? (Round your answer to the nearest whole dollar.) With a 6% interest rate, Sarah would need $ If Sarah's savings are eaming a lower interest rate (6 %) , she will need to save to be able to withdrew $32.000 per vear. i Reference prk t est her sa 1 tal tab Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 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 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 ah n 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 r of nearest w 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0404 0.351 0.327 0,305 0.266 0.233 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 t rat 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 0444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 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 16 0.853 0.728 0.623 0.534 0458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 18 0.836 0.700 0.587 0.494 0416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 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 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 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 0.795 0.634 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 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 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 0.024 0.016 0.010 0.126 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.102 0.066 0.043 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 0.024 0.016 0.010 26 0.772 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 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.018 0.011 0.007 28 0.757 0.574 0.437 0.333 0.255 0.196 0.150 0.116 0.090 0.069 0.042 0.026 0.020 0.016 0.010 0.006 0.005 29 0.749 0.563 0.424 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.014 0.008 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 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.003 0.001 0.001 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 0.001 Future Value of $1 10% 14% 15% Periods 1% 2% 3% 5% 6% 7% 8% 9% 12% 4% 1 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 1.188 2 1.020 1,040 1.061 1.082 1.103 1.124 1.145 1.166 1.210 1.254 1.300 1.323 1.482 3 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.405 1.521 4 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.412 1.464 1,574 1.689 1.749 5 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2,011 6 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 2.195 2.313 2.660 7 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.211 2.502 1.172 2.476 8 1.083 1.267 1.369 1,477 1.594 1.718 1.851 1.993 2.144 2.853 3.059 2.358 9 1.094 1.195 1.305 1.423 1,551 1.629 1.689 1.838 1.999 2.172 2.773 3.252 3.518 1.480 2.367 10 1.105 1.219 1.344 1.791 1.967 2.159 2.594 3.106 3.707 4.046 1.24 2.33 4.652 11 1.116 384 1.539 1.710 1.898 2.105 2.580 2,853 3.47 4,226 1.426 12 1.127 1.268 1.601 1,796 2.012 2.252 2.518 2,813 3.138 3.896 4.818 5.350 13 1.138 1.294 1.469 1.665 1,886 2.133 2.410 2,720 3.066 3.452 4,363 5.492 6.153 14 1.149 1.319 1.513 1.732 1.980 2.261 2,579 2.937 3.342 3.798 4.887 6.261 7,076 15 1.161 1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.642 4.177 5.474 7,138 8.137 16 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4,595 6.130 8.137 9.358 2693 17 1.184 1.400 1.653 1.948 2.292 3.159 3.700 4.328 5.054 6.866 9.276 10.76 1.196 2.026 4717 7.690 12.38 18 1,428 1.702 2.407 2.854 3.380 3.617 3.996 5.560 10.58 1.754 3.026 19 1.208 1.457 2.107 2.527 4,316 5.142 6.116 8.613 12.06 14.23 2.653 5.604 9.646 20 1.220 1.486 1.806 2.191 3.207 3.870 4.661 6.727 13.74 16.37 21 1.232 1.516 1.860 2.279 2.786 3.400 4.141 5.034 6.109 7,400 10.80 15.67 18.82 22 1.245 1.546 1.916 2.370 2.925 3.604 4.430 5.437 6.659 8.140 12.10 17.86 21.64 23 1.257 1.577 1.974 2.465 3.07 3.820 4,741 5.871 7.258 8.954 13.5 20.36 24.89 1.270 2.033 4.049 5.072 6.341 24 1.608 2.563 3.225 7,911 9.850 15.18 23.21 28.63 25 1.282 1,641 2.094 2.666 3.386 4,292 5.427 6.848 8.623 10.83 17.00 26.46 32.92 17.00 25 1.282 1.641 2.094 2.666 3.386 4.292 5.427 6.848 8.623 10.83 26.46 32.92 26 1.295 1,673 2.157 2.772 3.556 4.549 5.807 7,396 9.399 11.92 19.04 30.17 37.86 2.883 2.999 6.214 27 1.308 1.707 2.221 3.733 4.822 7,988 10.25 13.11 21.32 34.39 43,54 28 1.321 1.741 2.288 3.920 5.112 6.649 8.627 11.17 14.42 23.88 39.20 50.07 44.69 29 1.335 1,776 2.357 3.119 4,116 5.418 7,114 9.317 12.17 15.86 26.75 57.58 30 1.348 1.811 2,427 3.243 4.322 5.743 7,612 10.06 13.27 17.45 29.96 50.95 66.21 21.72 188.9 40 1.489 2.208 3.262 4.801 7.040 10.29 14.97 31.41 45.26 93.05 267.9 50 1.645 2.692 4.384 7.107 11.47 18.42 29.46 46.90 74.36 117.4 289.0 700.2 1,084 i work t Reference es of $1 ta $1 tab Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 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 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1,626 1.605 1.566 1.528 Sarah n 3 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 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 5417 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 nber of ne 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4,564 4.288 4.160 4.039 3.812 3.605 7.652 7,325 7,020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 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 10 9.471 8.983 8.530 8.111 7,722 7.360 7,024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.192 rest rat 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 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7,161 6.814 6.194 5.660 5.421 5.197 4.793 4.439 13 11.348 12.106 11.296 13.865 12.849 11.938 12.134 10.635 9.986 9.394 8.853 8.358 7.904 7,487 7,103 6.424 5.842 5.583 5.342 4.910 4.533 14 13.004 10.563 9.899 9.295 8.745 8.244 7,786 7,367 6.628 6.002 5.724 5.468 5.008 4.611 15 11.118 10.380 9.712 9.108 8.559 8.061 7,606 6.811 6.142 5.847 5.575 5.092 4.675 13.578 12.561 14.292 13.166 14.992 13.754 15.678 14.324 16 14.718 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4,730 17 15.562 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4,775 18 16.398 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7,250 6.467 6.128 5.818 5.273 4,812 13.134 12.085 11.158 19 17.226 10.336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4.844 18.046 16.351 14.877 13.590 12.462 11.470 20 10.594 9.818 9.129 8.514 7,469 6.623 6.259 5.929 5.353 4.870 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 17.658 15.937 18.292 16.444 14.857 18.914 16.936 13.163 12.042 11.061 13.489 12.303 11.272 10.371 13.799 12.550 11.469 22 19.660 14.451 10.201 9.442 8.772 7.645 6.743 6.359 6.011 5410 4.909 23 20.456 9,580 8.883 7,718 6.792 6.399 6.044 5.432 4.925 24 21.243 15.247 10.529 9.707 8.985 7,784 6.835 6.434 6.073 5.451 4.937 19.523 17.413 15.622 14.094 12.783 11.654 25 22.023 10.675 9.823 9.077 7,843 6.873 6.464 6.097 5.467 4.948 12.783 11,654 17.413 15.622 25 22.023 19.523 14.094 10.675 9.823 9.077 7,843 6.873 6.464 6.097 5.467 4.948 26 22.795 20.121 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161 7.896 6.906 6.491 6.118 5.480 4.956 14.643 11.987 10.935 10.027 4.964 27 23.560 20.707 18.327 16.330 13.211 9.237 7.943 6.935 6.514 6.136 5.492 6.961 6.983 7.003 24.316 21.281 18.764 7,984 28 16.663 14.898 13.406 12.137 11.051 10.116 9.307 6.534 6.152 5.502 4.970 25.066 21.844 19.188 25.808 22.396 19.600 17.292 29 16.984 15.141 13.591 12.278 13.765 12.409 11.158 10.198 9.370 8.022 6.551 6.166 5.510 4.975 30 15.372 11.258 10.274 9.427 8.055 6.566 6.177 5.517 4.979 32.835 27.355 23.115 19.793 17.159 15.046 13.332 7.105 6.233 40 11.925 10.757 9.779 8.244 6.642 5.548 4.997 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 50 9.915 8.304 7.133 6.661 6.246 5.554 4.999 i Reference el a e can inves Future Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1,000 1.000 1.000 2 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 Ow 3 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 4.440 4 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.573 4.641 4.779 4.921 4.993 5 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 6.152 6.308 6.468 6.633 6.802 6.975 7.153 7.336 7.523 7.716 8.115 8.536 8.754 er to the ne 8.654 10.260 7.898 7 7.214 7.434 7.662 8.142 8.394 8.923 9.200 9.487 10.09 10.73 11.07 8 8.286 8.583 8.892 9.214 9.549 9.897 10.64 11.03 11.44 12.30 13.23 13.73 11.03 12.49 9.369 9.755 10.16 10.58 11.49 11.98 13.02 13.58 14.78 16.09 16.79 10 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 ), S 11 11.57 12.17 12.81 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 12 12.68 13.41 14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 14 14.95 15.97 17.09 18.29 19.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 40.50 15 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 31.77 37.28 43.84 47.58 16 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 17 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 18 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 68.39 75.84 55.75 22.84 41.45 46.02 19 20.81 25.12 27.67 30.54 33.76 37.38 51.16 63.44 78.97 88.21 41.00 20 22.02 24.30 26.87 29.78 33.07 36.79 45.76 51.16 57.28 72.05 91.02 102.4 21 23.24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 22 24.47 27.30 30.54 34.25 38,51 43.39 49.01 55.46 62.87 71.40 92,50 120.4 137.6 23 25.72 28.85 32.45 36.62 41.43 47.00 53.44 60.89 69.53 79.54 104.6 138.3 159.3 24 26.97 30.42 34.43 39.08 44.50 50.82 58.18 66.76 76.79 88.50 118.2 158.7 184.2 25 28.24 32.03 36.46 41.65 47,73 54.86 63.25 73.11 84.70 98.35 133.3 181.9 212.8 st LO 30.42 44.50 184.2 24 26.97 34.43 39.08 50.82 58.18 bb.76 76.79 88.50 118.2 158.7 28.24 41.65 25 32.03 36.46 47,73 54.86 63.25 73.11 84.70 98.35 133.3 181.9 212.8 33.67 44.31 47.08 49.97 109.2 26 29.53 38.55 51.11 59.16 68.68 79.95 93.32 150.3 208.3 245.7 35.34 27 30.82 40.71 54.67 63.71 74.48 87.35 102.7 121.1 169.4 238.5 283.6 80.70 87.35 94.46 95.34 104.0 28 32.13 37.05 42.93 58.40 68.53 113.0 134.2 190.7 272.9 327.1 148.6 214.6 29 33.45 38.79 45.22 52.97 62.32 73.64 124.1 312.1 377.2 34.78 40.57 79.06 356.8 30 47.58 56.08 66.44 113.3 136.3 164.5 241.3 434.7 40 48.89 60.40 75.40 95.03 120,8 154.8 199.6 259.1 337.9 442.6 767.1 1,342 1,779 50 64.46 84.58 112.8 152.7 209.3 290.3 406.5 573.8 815.1 1.164 2,400 4,995 7,218