Solve various time value of money scenarios. i (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 More info 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 an 8% interest rate. 3. Assume that you want to have $170,000 saved seven years from now. If you can invest your funds at a 6% interest rate, how much do you currently need to invest? 4. Your aunt Mary plans to give you $2,000 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 $52,500 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 Periods 1% 2% 3% 4% Period 1 0.990 0.980 Period 2 0.980 Period 3 0.971 Period 4 0.961 0.971 0.961 0.943 0.942 0.915 0.924 0.888 5% 0.962 0.952 0.925 0.907 0.890 6% 8% 0.943 0.926 0.857 10% 12% 0.909 0.893 0.826 14% 0.877 0.797 0.769 16% 18% 20% 0.862 0.743 0.718 0.694 0.847 0.833 0.889 0.864 0.840 0.794 0.855 0.823 0.792 0.735 Period 6 Period 5 0.951 0.942 0.906 0.863 0.822 0.784 0.747 0.681 0.751 0.712 0.675 0.641 0.609 0.579 0.683 0.636 0.592 0.552 0.516 0.482 0.621 0.567 0.519 0.476 0.437 0.402 0.888 0.837 0.790 0.746 0.705 0.630 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.500 0.424 0.463 0.386 0.564 0.507 0.456 0.410 0.583 0.513 0.452 0.400 0.354 0.314 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 0.322 0.270 0.227 0.191 0.162 0.370 0.335 0.279 Period 11 0.896 0.804 0.722 0.650 0.585 Period 12 0.887 0.788 0.701 0.625 Period 13 0.879 0.773 0.681 Period 14 0.870 0.758 0.661 Period 15 0.861 0.743 0.642 0.527 0.429 0.350 0.557 0.497 0.397 0.319 0.601 0.530 0.469 0.368 0.290 0.577 0.505 0.442 0.340 0.263 0.555 0.481 0.417 0.315 0.239 0.287 0.237 0.195 0.257 0.208 0.168 0.229 0.182 0.145 0.116 0.093 0.205 0.160 0.125 0.099 0.078 0.183 0.140 0.108 0.084 0.065 0.162 0.135 0.137 0.112 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 - X Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% Period 1 1.010 1.020 1.030 1.040 1.050 Period 2 1.020 1.040 1.061 1.082 1.103 Period 3 1.030 1.061 1.093 1.125 1.158 Period 4 1.041 1.082 1.126 1.170 1.216 1.360 1.464 1.574 1.689 10% 1.060 1.080 1.100 1.124 1.166 1.210 1.254 1.300 1.346 1.191 1.260 1.331 1.405 1.482 1.561 1.262 12% 14% 16% 1.120 1.140 1.160 1.180 18% 20% 1.200 1.392 1.440 1.643 1.728 1.811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 Period 7 1.072 1.149 Period 8 1.083 Period 9 1.094 1.195 Period 10 1.105 1.219 1.344 1.316 1.172 1.267 1.369 1.305 1.423 1.480 1.230 1.407 1.477 1.594 1.551 1.689 1.629 1.791 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 1.851 2.144 2.476 2.853 1.999 2.159 2.594 3.106 3.278 3.759 4.300 2.358 2.773 3.252 3.803 4.435 5.160 3.707 4.411 5.234 6.192 Period 11 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 Period 20 1.220 1.486 1.806 Period 25 1.282 1.641 Period 30 1.348 1.811 Period 40 1.489 2.208 2.191 2.094 2.666 2.427 3.243 3.262 4.801 3.172 2.653 3.207 4.661 6.727 3.386 4.292 6.848 10.835 4.322 5.743 10.063 17.449 7.040 10.286 21.725 45.259 9.646 13.743 19.461 27.393 38.338 17.000 26.462 40.874 62.669 95.396 29.960 | 50.950 85.850 143.371 237.376 93.051 188.884 378.721 750.378 1,469.772 4.818 4.363 5.492 6.886 8.599 10.699 3.797 4.887 6.261 7.988 10.147 12.839 4.177 5.474 7.138 9.266 11.974 15.407 5.936 7.288 8.916 Reference Present Value of Annuity of $1 Periods 1% 2% 3% Period 1 0.990 Period 2 1.970 Period 3 2.941 Period 4 3.902 Period 5 4.853 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 1.913 1.886 1.859 1.833 1.783 1.736 | 1.690 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 4.713 4.580 | 4.452 | 4.329 4.212 3.993 3.791 3.605 2.322 2.246 1.647 1.605 1.566 1.528 2.174 2.106 2.914 2.798 2.690 2.589 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 | 5.242 5.076 4.917 4.623 4.355 4.111 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 Period 11 10.368 3.889 3.685 3.498 3.326 4.288 4.039 3.812 3.605 4.639 4.946 5.216 4.833 4.607 4.344 4.078 3.837 4.303 4.031 4.494 4.192 Period 12 11.255 Period 13 12.134 9.787 9.253 8.760 8.306 10.575 9.954 9.385 8.863 11.348 10.635 9.986 9.394 Period 14 13.004 12.106 11.296 10.563 9.899 Period 15 13.865 12.849 11.938 11.118 10.380 Period 20 18.046 16.351 14.877 13.590| 12.462 11.470| 9.818 8.514 7.469 Period 25 22.023 19.523 17.413| 15.622| 14.094 12.783| 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 | 11.258 9.427 8.055 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.887 | 7.139 | 6.495 | 5.938 5.453 5.029 4.656 4.327 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 8.853 7.904 7.103 6.424 9.295 8.244 7.367 6.628 9.712 | 8.559 7.606 6.811 5.842 5.342 4.910 4.533 6.002 5.468 5.008 4.611 6.142 5.575 5.092 4.675 6.623 5.929 5.353 4.870 6.873 7.003 6.177 7.105 6.097 5.467 4.948 5.517 4.979 6.233 5.548 4.997 Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 Period 2 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 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4.246 Period 5 5.101 5.204 5.309 5.416 4.310 5.526 4.375 4.506 4.641 4.779 5.637 5.867 6.105 6.353 6.610 4.921 5.066 5.215 5.368 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.802 Period 7 7.214 7.434 6.633 6.975 7.336 8.115 8.536 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 Period 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 Period 11 11.567 12.169 | 12.808 | 13.486 14.207 | 14.972 | 16.645 | 18.531 | 20.655 Period 12 12.683 13.412 | 14.192 | 15.026 15.917 | 16.870 | 18.977 | 21.384 | 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334| 181.871 249.214 342.603 471.981 Period 30 34.785 40.568 47.575 56.085 | 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 Period 40 48.886 60.402 75.401 95.026 120.800| 154.762 259.057 442.593 767.091 | 1,342.025 2,360.757 4,163.213 7,343.858 7.716 8.977 9.442 9.930 11.414 12.142 12.916 14.240 15.327 16.499 16.085 19.337 17.519 19.086 20.799 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 32.089 37.581 43.842 30.850 34.931 39.581 36.786 42.219 48.497 43.672 50.818 59.196 51.660 60.965 72.035