Scenerio 1 present value:

Scenerio 2 present value:

Scenerio 3 present value:

Show formula please

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. $7,250 a year at the end of each of the next eight years 2. $48,750 (lump sum) now 3. $99,850 (lump sum) eight years from now Calculate the present value of each scenario using an 8% interest rate. Which scenario yields the highest present value? Would your preference change if you used a 12% interest rate? (Click the icon to view the present value annuity factor table.) (Click the icon to view the present value factor table.) (Click the icon to view the future value annuity factor table.) 19 Click the icon to view the future value factor table.) Using an 8% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar.) Present value of Scenario 1 i Present Value of $1 Present Value of $1 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 6% 8% 0.943 0.926 0.890 0.857 0.840 0.794 0.792 0.735 0.747 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 Periods 1% 2% Period 1 0.990 0.980 Period 2 0.980 0.961 Period 3 0.971 0.942 Period 4 0.961 0.924 Period 5 0.951 0.906 Period 6 0.942 0.888 Period 7 0.933 0.871 Period 8 0.923 0.853 Period 9 0.914 0.837 Period 10 0.905 0.820 Period 11 0.896 0.804 Period 12 0.887 0.788 Period 13 0.879 0.773 Period 14 0.870 0.758 Period 15 261 743 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 0.722 0.701 0.681 0.661 0642 0.650 0.625 0.601 0.577 555 0.585 0.557 0.530 0.505 4R1 0.527 0.497 0.469 0.442 0417 0.429 0.397 0.368 0.340 0315 0.350 0.319 0.290 0.263 n 220 0.287 0.257 0.229 0.205 0183 0.237 0.208 0.182 0.160 140 0.195 0.168 0.145 0.125 0108 0.162 0.137 0.116 0.099 0084 0.135 0.112 0.093 0.078 0065 her yed lun lun Future Value of Annuity of $1 pre rate ico 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 ich inte Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 1% 2% 3% 4% 5% 6% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 4.060 4 122 4184 4246 4.310 4.375 4.506 4.641 4.779 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 11.567 12.169 12.808 | 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 | 15.026 15.917 16.870 18.977 21.384 24.133 13.809 14.680 | 15.618 | 16.627 17.713 18.882 21.495 24.523 | 28.029 14.947 15.974 17.086 18.292 | 19.599 | 21.015 24.215 | 27.975 32.393 16.097 17 293 18 599 | 20 024 | 21 570 23 276 27 152 31 772 37 290 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 e oil 23.045 27.271 32.089 37.581 43 242 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 6065 32.150 39.581 48.497 59.196 72.25 mo Print Nono i Present Value of $1 Present Value of $1 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 6% 8% 0.943 0.926 0.890 0.857 0.840 0.794 0.792 0.735 0.747 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 Periods 1% 2% Period 1 0.990 0.980 Period 2 0.980 0.961 Period 3 0.971 0.942 Period 4 0.961 0.924 Period 5 0.951 0.906 Period 6 0.942 0.888 Period 7 0.933 0.871 Period 8 0.923 0.853 Period 9 0.914 0.837 Period 10 0.905 0.820 Period 11 0.896 0.804 Period 12 0.887 0.788 Period 13 0.879 0.773 Period 14 0.870 0.758 Period 15 261 743 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 0.722 0.701 0.681 0.661 0642 0.650 0.625 0.601 0.577 555 0.585 0.557 0.530 0.505 4R1 0.527 0.497 0.469 0.442 0417 0.429 0.397 0.368 0.340 0315 0.350 0.319 0.290 0.263 n 220 0.287 0.257 0.229 0.205 0183 0.237 0.208 0.182 0.160 140 0.195 0.168 0.145 0.125 0108 0.162 0.137 0.116 0.099 0084 0.135 0.112 0.093 0.078 0065 Future Value of $1 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Perind 15 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 1.116 1.127 1.138 1.149 1 161 1.243 1.268 1.294 1.319 1346 1.384 1.426 1.469 1.513 1 558 1.539 1.601 1.665 1.732 1801 1.710 1.796 1.886 1.980 2.079 1.898 2012 2.133 2.261 2397 2.332 2.518 2.720 2.937 3. 172 2.853 3.138 3.452 3.797 4 177 3.479 3.896 4.363 4.887 5474 4.226 4.818 5.492 6.261 7 128 5.117 5.936 6.886 7.988 0266 6.176 7.288 8.599 10.147 11 974 7.430 8.916 10.699 12.839 15 407