Solve various time value of money scenarios. (Click the icon to view the scenarios.) (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the present value annuity factor table) (Click the icon to view the future value annuity factor table.) Scenario 1. Suppose you invest a sum of $5,500 in an interest-bearing account at the rate of 10% per year What will the investment be worth six years from now (Round your answer to the nearest whole dollar.) In six years the investment will be worth 1. Suppose you invest a sum of $5,500 in an interest-bearing account at the rate of 10% per year. What will the investment be worth six years from now? 2. How much would you need to invest now to be able to withdraw $8,000 at the end of every year for the next 20 years? Assume a 12% interest rate. 3. Assume that you want to have $140,000 saved seven years from now. If you can invest your funds at an 8% interest rate, how much do you currently need to invest? 4. Your aunt Rita plans to give you $5,000 at the end of every year for the next ten years. If you invest each of her yearly gifts at a 14% interest rate, how much will they be worth at the end of the 10-year period? 5. Suppose you want to buy a small cabin in the mountains four years from now. You estimate that the property will cost $54,500 at that time. How much money do you need to invest each year in an interest-bearing account at the rate of 6% per year to accumulate the purchase price? Reference Present Value of $1 Score: 16.67% 1 -X Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 0.980 0.961 0.943 Period 3 0.971 0.942 0.915 Period 4 0.961 0.924 0.888 Period 5 0.951 0.906 Period 6 0.942 Period 11 0.896 0.621 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.804 0.722 0.650 0.585 0.527 0.429 0.350 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 Period 13 0.879 0.773 0.681 0.368 0.290 Period 14 0.870 0.758 0.661 5% 6% 8% 10% 12% 14% 16% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.925 0.907 0.890 0.857 0.826 0.797 0.889 0.864 0.840 0.794 0.751 0.712 0.855 0.823 0.792 0.735 0.863 0.822 0.784 0.747 0.681 18% 20% 0.847 083 0.769 0.743 0.718 0.69 0.675 0.641 0.609 0.57 0.683 0.636 0.592 0.552 0516 048 0.567 0.519 0.476 0.437 0.40 0.456 0.410 0.370 0.33 0.404 0.361 0.452 0.400 0.354 0.314 0.27 0.351 0.305 0.266 0.23 0.308 0.263 0.225 0.19 0.386 0.322 0.270 0.227 0.191 0.16 0.287 0.237 0.195 0.162 0.13 0.257 0.208 0.168 0.137 0.11 0.601 0.530 0.469 0.229 0.182 0.145 0.116 009 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.07 Print Done Future Value of $1 Periods Period 1 1% 2% 3% 4% 1.010 1.020 1.030 1.040 5% 1050 1.040 1.082 1.103 1.158 1.083 1.172 1.267 Period 9 1.004 Period 101 1.369 1.196 1.306 1423 1105 1219 1.344 1.480 Period 11 1.116 1.243 1.384 1.539 1.710 1898 2332 2853 Period 12 1.127 1.268 1426 1.601 1.796 2012 2518 3.138 Period 131 1.138 1294 1.469 1.665 1886 2133 2720 3-452 4.363 5492 Period 14 1.149 1.319 1513 1.732 1.980 2261 2.937 3.797 4.887 6261 6% 8% 10% 12% 14% 1.060 1.080 1.100 1.120 1.140 Period 2 1.020 1.100 1.061 1.124 1.166 1.210 1.254 1:300 1.346 1302 Period 3 1.030 1440 1.061 1093 1.125 1.191 1.200 1331 1405 1.482 1.561 1643 1.728 Period 4 1.041 1.082 1.126 1.170 1.216 1262 1.360 1.484 1.574 1.689 1811 1930 2074 Period 5 1.051 1.104 1.1509 1217 1276 1.338 1469 1.611 1.762 1.925 2.100 2288 2488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1974 2.196 2.436 2700 2986 Period 7 1.072 1.149 1230 1316 1407 1.504 1714 1940 2211 2502 2826 3.186 3.583 Period 8 1477 1.504 1851 2144 2476 2853 3.278 3.750 4.300 1.561 1680 1.900 2358 2773 3.252 3.803 4.435 5100 1.629 1.791 2.159 2.504 3.106 3.707 4411 5234 6.192 16% 18% 20% 1.180 1200 ment be worth 3.479 4.226 5.117 6.176 7430 3.806 4.818 5.936 7288 8.916 6.886 8.599 10 609 7988 10.147 12.839 Print Done ar all mo 952.html Canceled Reference - X Present Value of Annuity of $1 table.) Periods 1% Period 1 0.990 Period 2 1.970 Period 3 2941 Period 4 3.902 Period 5 4.853 Period 6 5.795 5.601 5.417 5242 5.076 4.917 4.623 4.355 4 111 Period 7 6.728 6472 6.230 6.002 5.786 5.582 5.206 4.868 4564 Period 8 7.652 7.325 7.020 6.733 6.463 6210 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 Period 11 10.368 9.787 9253 8.760 8.306 7.887 Period 12 11 255 10.575 9.954 9.385 8.863 8.384 Period 13 12 134 11.348 10.635 9.986 9.394 8 853 Period 14 13.004 12.106 11 296 10.563 9.899 9.295 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.942 1913 1.888 1859 1.833 1.783 1.736 1690 1.647 1.605 1.566 1.528 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2402 2.322 3.808 3.717 3.630 3.546 3.465 3312 3.170 3.037 2.914 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 ble.) 2246 2.174 2.106 2.798 2.690 2.589 3.433 3274 3.127 2.991 nvestme 3.889 3.685 3.498. 3.326 4 288 4.039 5 747 5.335 4.968 4.639 4.344 6.247 5.759 5.328 4.946 4.607 6.710 6.145 5.650 5.216 4.833 4.494 4.303 4.031 4.192 3.812 3.605 4.078 3.837 7.139 6 495 5.938 5.453 5.029 4.656 4.327 7.536 6.814 6.194 5.660 5.197 4.793 4.439 7.904 7.103 6.424 5.842 5.342 4.910 4.533 8.244 7.367 6628 6.002 5.468 5.008 4.611 Print Done Clear Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% Period 1 1.000 1.000 1.000 1.000 Period 2 Period 31 2010 2020 2.030 2.040 3.030 3.060 3.091 Period 4 4.060 4.122 4.184 Period 5 5.101 5204 5.309 5416 5.526 5% 6% 1.000 1.000 2.050 3.153 3.184 3.122 3246 3310 3.374 4.375 4.246) 4.310 4.506 4.641 4.779 6353 5637 5.867 6.106 8% 10% 12% 1.000.000 1.000 2.060 2.080 2100 2.120 14% 16% 1.000 1.000 1.000 18% 20% 1000 2.140 2.160 2180 2200 3.440 3.506 3572 3640 4921 5215 5066 5.368 6.610 6.877 7154 7442 nt be wor Period 6 6.152 6.308 6468 6.633 6802 6.975 7.336 7.716 8.115 8.536 8.977 9442 9.930 Period 7 7214 7434 7.662 7.806 8142 8.304 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 81 8.286 8.583 8.892 9.214 9.549 9897 10.637 11.436 12.300 13.233 14.240 15.327 16.490 Period 9 9389 9.755 10.159 10.583 11.027 11.491 12 488 13 579 14.776 16.085 17.519 19.086 20799 Period 10 10.462 10.950 11.464 12.006 12.578 13 181 14 487 15 937 17 549 19337 21.321 23.521 25.969 Period 11 11.567 12 169 12 808 13.486 14.207 14.972 16 645 18 531 20 655 23.045 25.733 28.756 32.150 Period 12 12.683 13 412 14.192 15.026 15.917 16 870 18 977 21.384 24 133 27.271 30.850 34 9311 39 581 Period 13 13 809 14 680 15.618 16.627 17.713 18 882 21.495 24 523 28 029 32 089 36.786 42219 48.497 Period 14 14 947 15 974 17.086 18.292 19.599 21.015 24 215 27 975 32.393 37.581 43.672 50.818 50.196 Print Done