Save Homework: Week Eight : Chapter 11 : Exercises Score: 0 of 1 pt 7 of 19 (2 complete) HW Score: 10.53%, 2 of 19 pts S26-10 (similar to) Question Help 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. $8,550 per year at the end of each of the next eight years 2. $49,950 (lump sum) now 3. $99,850 (lump sum) eight years from now (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of Annuity of $1 table.) Requirement 1. Calculate the present value of each scenario using a 6% discount rate. Which scenario yields the highest present value? Round to the nearest whole dollar. 2. Would your preference change if you used a 10% discount rate? Requirement 1. Calculate the present value of each scenario using a 6% discount rate. Which scenario yields the highest present value? (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar) Present Value Scenario 1: V1 OV 10/ 0/1 Enter any number in the edit fields and then click Check Answer Clear All Check Answer 7 parts remaining Question Reference grang -,550 -9,950 99,850 (Click Periods 12% 1 uirem Calcu Would 2 3 4 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 4% 0.962 0.925 0.889 0.855 0.822 0.718 an 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 quirem imalpl 6 0.335 8 9 10 0.888 0.871 0.853 0.837 0.820 0.790 0.760 0.731 0.703 0.676 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 cenario 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.527 0.497 0.469 0.442 0.417 11 12 13 14 15 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 5% 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 0.585 0.557 0.530 0.505 0.481 0.458 0.436 0.416 0.396 0.377 0.359 0342 0.326 0.310 0.295 0.650 0.625 0.601 0.577 0.555 Present Value of $1 7% 8% 9% 10% 14% 15% 16% 18% 0.935 20% 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.873 0.857 0.833 0.842 0.826 0.797 0.769 0.756 0.743 0.816 0.694 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0227 0.191 0.162 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.415 0.112 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.388 0.340 0.29 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.028 0.018 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 0.394 0.371 16 17 18 19 20 0.853 0.844 0.836 0.828 0.820 0.728 0.714 0.700 0.686 0.673 0.534 0.513 0.494 0.475 0.456 0.350 0.331 0.312 0.623 0.605 0.587 0.570 0.554 0.538 0.522 0.507 0.492 0.478 0.022 21 22 23 24 25 0.811 0.803 0.795 0.788 0.780 0.660 0.647 0.634 0.622 0.610 0.439 0.422 0.406 0.390 0.375 0.294 0.278 0.262 0.247 0.233 Enter any Print Done 7 parts remaining Reference Your grand 0 1. $8,550 2. $49,95 3. $99.850 (Click 6 0.432 7 8 Requirem 1. Calcul 2. Would 9 10 lar 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.001 0.577 0.555 Requirem decimal pl 11 12 13 14 15 0.746 0.711 0.677 0.645 0.614 0.585 0.557 0.530 0.505 0.481 0.458 0.438 0.416 0.398 0.377 to thre Scenario 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 0.896 0.804 0.722 0.887 0.788 0.701 0.879 0.773 0.681 0.870 0.758 0.661 0.861 0.743 0.642 0.853 0.728 0.623 0.844 0.714 0.605 0.836 0.700 0.587 0.828 0.686 0.570 0.820 0.673 0.554 0.811 0.680 0.538 0.803 0.647 0.522 0.795 0.634 0.507 0.788 0.622 0.492 0.780 0.610 0.478 0.772 0.598 0.464 0.764 0.586 0.450 0.757 0.574 0.437 0.749 0.563 0.424 0.742 0.552 0.412 0.672 0.453 0.307 0.608 0.372 0.228 16 17 18 19 20 0.534 0.513 0.494 0.475 0.456 0.705 0.666 0.630 0.596 0.564 0.507 0.458 0.665 0.410 0.370 0.623 0.583 0.335 0.547 0.513 0.452 0.400 0.376 0.627 0.582 0.354 0.314 0.540 0502 0.279 0.467 0404 0.351 0.327 0.305 0.592 0.544 0.500 0.266 0.233 0.460 0424 0.361 0.308 0284 0.263 0.225 0.558 0.508 0.463 0.194 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 0.527 0.475 0.429 0.388 0.350 0287 0.237 0.215 0.196 0.162 0.497 0.444 0.135 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.442 0.388 0.340 0.299 0.263 0.206 0.160 0.141 0.125 0.099 0.078 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 0.350 0.296 0.250 0 212 0.180 0.130 0.096 0.081 0.069 0.051 0.038 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 0.294 0.242 0.199 0.184 0.135 0.093 0.064 0.053 0.044 0.031 0.022 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.028 0.021 0.014 0.009 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.0180.011 0.007 0.196 0.150 0.116 0.090 0.069 0.042 0.026 0.020 0.016 0.010 0.008 0.185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 0.174 0.131 0.099 0.0 0.057 0.033 0.020 0.015 0.012 0.007 0.004 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.003 0.001 0.001 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 0.001 0.000 0.000 0.439 0.422 0.406 0.390 0.375 0.359 0.342 0.326 0.310 0.295 21 22 23 24 25 26 27 28 29 30 40 0.361 0.347 0.333 0.321 0.308 0.208 0.141 0.281 0.268 0.256 0.243 0.231 0.142 0.087 50 Enter any Print Done 7 parts remaining Question Help Reference Your grand 1. $8,550 2. $49,950 3. $99,850 (Click Requirem 1. Calcu 2. Would Periods 1 2 ar co 4 5 Requirem decimal pl to three 6 7 8 9 10 Scenario 11 12 13 14 15 Present Value of Annuity of $1 1% 2% 3% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 0.990 0.980 0.971 20% 0.962 18% 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 1.970 1.942 1.913 0.862 0.847 1.886 1.859 1.833 0.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 2.941 2884 1.605 1.566 2.829 2.775 2.723 1.528 2.673 2.624 2.577 2.531 2.487 2.402 2.322 3.902 3,808 2 283 2.246 3.717 3.630 2.174 2.106 3.546 3,465 3.387 3.312 3.240 3.170 3,037 2914 2 855 2.798 2589 4.853 2.690 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.606 3.433 3.352 3.274 3.127 2.991 5.795 5.601 5.417 5.242 5,076 4.917 4.767 4.623 4.486 4.356 4.111 3.889 6.728 3.784 3.685 3.498 3.326 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4288 4.160 4009 3.812 3.605 7.652 7.325 7,020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.9684.6394.4874.344 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 4.7724.607 4,303 4.031 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.0194.833 4494 4.192 10.3689.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.496 5.938 5.453 5.234 5.029 4.656 4.327 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 4439 12.134 11.348 10.635 9.988 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5,583 5.342 4.910 4.533 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.788 7.367 6.628 6.002 5.724 5.468 5.008 4.611 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.5698.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 14.718 13.578 12.561 11.652 10.838 10.1069.447 8.851 8.313 7.824 6.974 6.265 5.954 5.6685.182 4.730 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6047 5.749 5.222 4.775 16.398 14.992 13.754 12,659 11.690 10.828 10.0599.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 17226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4.843 18.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.514 7.469 6.623 6.259 5.929 5.350 4.870 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 19.660 17.658 15.937 14451 13.163 12.042 11.061 10.2019.4428.772 7.645 6.743 6.359 6.011 5.410 4.909 20.456 18 292 16.444 14.857 13.489 12 303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 6.044 5.432 4.925 21.243 18.914 16.936 15.247 13.799 12 550 11.469 10.529 9.707 8.985 7.784 6.835 8.434 5.451 4.937 22.023 19.523 17.413 15.622 14.094 12783 11.654 10.675 9.823 9.077 7.843 6.8736.464 6.097 5.467 4.948 16 17 18 19 20 21 22 23 24 25 6.073 Enter any Print Done 7 parts remaining Reference ar grand 68,550 549,950 99,850 (Click quirem Calcu Would 6 7 8 9 10 3.605 lar. quirem 11 12 13 14 15 Simal pll tot enario 16 17 18 19 20 5.795 5.601 5.417 5242 5.076 4.917 4.767 4.623 4.486 4.355 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 7.652 7325 7,020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 15.562 14.292 13.166 12.166 11.274 10477 9.763 9.122 8.544 8.022 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 18.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.514 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.442 8.772 20.456 18 292 16.444 14.857 13.489 12 303 11.272 10.371 9.580 8.883 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 22.023 19.523 17.41315.622 14.094 12.783 11.654 10.675 9.823 9.077 22.795 20.121 17.877 15.983 14.375 13.003 11.826 10.8109.929 9.161 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 25.066 21.844 19.188 16.984 15.141 13.591 12 278 11.158 10.198 9.370 25.808 22 396 19.600 17.292 15.372 13.765 12.409 11.258 10.2749.427 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.7579.779 39.196 31 424 25.730 21482 18256 15.762 13.801 12.233 10.962 9.915 4.111 3.889 4.564 4.288 4.968 4.639 5.328 4.946 5.650 5.216 5.938 5.453 6.194 5.660 6.424 5.842 6.628 6.002 6.811 6.142 6.974 6.265 7.120 6.373 7.250 6.467 7.366 6.550 7.469 6.623 7.562 6.687 7.645 6.743 7.718 6.792 7.784 6.835 7.843 6.873 7.896 6.906 7.943 6.935 7.984 6.961 8.022 6.983 8.065 7.003 8.244 7,105 8.304 7.133 3.784 3.685 3.498 3.326 4.160 4.039 3.812 4.487 4.344 4.078 3.837 4.772 4 607 4.303 4.031 5.019 4.833 4.494 4.192 5.234 5.029 4.656 4.327 5.421 5.197 4.793 4439 5.583 5.342 4.910 4.533 5.724 5.468 5.008 4.611 5.847 5.575 5.092 4.675 5.954 5.668 5.162 4.730 6.047 5.749 5.222 4.775 6.128 5.818 5.273 4.812 6.198 5.877 5.316 4843 6.259 5.929 5.353 4.870 6.312 5.973 5.384 4.891 6.359 6.011 5.410 4.909 6.399 6.044 5.432 4.925 6.434 6.073 5.451 4937 6.484 6.097 5.467 4.948 6.491 6.118 5.480 4.956 6.514 6.136 5.492 4.964 6.534 6.152 5.502 4.970 6.551 8.166 5.510 4975 6.568 6.177 5.517 4.979 6.642 6.233 5.548 4.997 6.661 6.246 4.999 21 22 23 24 25 26 27 28 29 30 40 5.554 50 ter any 1 Print Done parts remaining