Solve various time value of money scenarios. i (Click the icon to view the scenarios.) 2 (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 $3,000 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 $ Scenario 2. How much would you need to invest now to be able to withdraw $6,000 at the end of every year for the next 20 years? Assume a 12% interest rate. (Round your answer to the nearest whole dollar.) The current investment amount required is $ Scenario 3. Assume that you want to have $135,000 saved seven years from now. If you can invest your funds at an 8% interest rate, how much do you currently need to invest? (Round your answer to the nearest whole dollar.) The current investment amount required is $ Scenario 4. Your aunt Gracen plans to give you $3,500 at the end of every year for the next ten years. If you invest each of her yearly gifts at a 12% interest rate, how much will they be worth at the end of the ten-year period? (Round your answer to the nearest whole dollar.) In ten years the investment will be worth $ Scenario 5. Suppose you want to buy a small cabin in the mountains four years from now. You estimate that the property will cost $53,000 at that time. How much money would you need to invest each year in an interest-bearing account at the rate of 8% per year to accumulate the purchase price? (Round your answer to the nearest whole dollar.) The investment required each year is $ Reference Reference Present Value of $1 Periods Periods 12% 12% 0.893 1.690 1 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 5% 0.952 0.907 0.864 0.823 0.784 0.893 0.797 0.712 0.636 1% 2% 0.990 0.980 0.980 0.961 0.971 0.942 0.961 0.924 0.951 0.906 8% 0.926 0.857 0.794 0.735 0.681 2.884 14% 0.877 0.769 0.675 0.592 0.519 2.775 16% 0.862 0.743 0.641 0.552 0.476 2577 2.402 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 20% 0.833 0.694 0.579 0.482 0.402 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 4 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 18% 0.847 0.718 0.609 0.516 0.437 3.037 3.605 3 4 5 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.567 Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 2.941 2.829 2.723 2.673 2.487 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 7.325 7.020 6.733 6.463 6.210 5.747 5.335 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 22.023 19.523 17.41315.622 14.094 12.783 10.675 9.077 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 32.835 27.355 | 23.115 19.793 17.159 15.046 11.925 9.779 6 7 8 7.652 4.111 4.564 4.968 5.328 5.650 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 6 7 8 9 10 0.942 0.933 0.923 0.914 0.905 0.888 0.871 0.853 0.837 0.820 0.746 0.711 0.677 0.645 0.614 0.630 0.583 0.540 0.500 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 0.335 0.279 0.233 0.194 9 10 0.463 0.162 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 11 12 13 14 15 5.938 6.194 6.424 6.628 6.811 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 0.672 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.315 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.195 0.168 0.145 0.125 0.108 0.135 0.112 0.093 0.078 0.065 20 25 30 40 7.469 7.843 8.055 8.244 6.623 6.873 7.003 7.105 5.929 6.097 6.177 6.233 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 20 25 30 40 0.673 0.610 0.552 0.453 0.554 0.478 0.412 0.307 0.456 0.375 0.308 0.208 0.377 0.295 0.231 0.142 0.312 0.233 0.174 0.097 0.215 0.146 0.099 0.046 0.149 0.092 0.057 0.022 0.104 0.059 0.033 0.011 0.073 0.038 0.020 0.005 0.051 0.024 0.012 0.003 0.037 0.016 0.007 0.001 0.026 0.010 0.004 0.001 Print Done Print Done Reference - 3% 4% Periods 1 2 1.000 1.000 1.000 1.000 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 2.030 3.091 4.184 5.309 3 12% 1.000 2.120 3.374 4.779 6.353 2.040 3.122 4.246 5.416 4 5 6 7 8 9 10 6.152 7.214 8.286 9.369 10.462 6.308 7.434 8.583 6.468 7.662 8.892 10.159 11.464 6.633 7.898 9.214 10.583 12.006 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762 259.057 442.593 8.115 10.089 12.300 14.776 17.549 9.755 11.491 10.950 14% 16% 18% 20% 1.000 1.000 1.000 2.140 2.160 2.180 2.200 3.440 3.506 3.572 3.640 4.921 5.066 5.215 5.368 6.610 6.877 7.154 7.442 8.536 8.977 9.442 9.930 10.730 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 43.672 59.196 43.842 51.660 60.965 72.035 91.025 115.380 146.628 186.688 181.871 249.214 342.603 471.981 356.787 530.312 790.948 1,181.882 1,342.025 2,360.757 4,163.213 7,343.858 11 12 13 14 15 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 20.655 24.133 28.029 18.292 24 215 32 393 37.581 50.818 20.024 22.019 28.243 34.785 48.886 24.297 32.030 40.568 60.402 26.870 36.459 47.575 75.401 29.778 41.646 56.085 95.026 37.280 72.052 133.334 241.333 767.091 30 40 Print Done X 1 Reference Future Value of $1 Periods 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 16% 1.160 1.346 1.561 1.811 2.100 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 4 5 1.126 1.149 6 7 8 9 10 1.062 1.072 1.083 1.094 1.105 1.172 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 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 1.195 1.219 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 11 12 13 14 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 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 5.474 4.226 4.818 5.492 6.261 7.138 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 20 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 4.661 6.848 10.063 21.725 6.727 10.835 17.449 45.259 9.646 17.000 29.960 93.051 13.743 26.462 50.950 188.884 19.461 40.874 85.850 378.721 27.393 62.669 143.371 750.378 38.338 95.396 237.376 1.469.772 30 40 Print Done i More Info - X 1. Suppose you invest a sum of $3,000 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 $6,000 at the end of every year for the next 20 years? Assume a 12% interest rate. 3. Assume that you want to have $135,000 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 Gracen plans to give you $3,500 at the end of every year for the next ten years. If you invest each of her yearly gifts at a 12% interest rate, how much will they be worth at the end of the ten-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 $53,000 at that time. How much money would you need to invest each year in an interest-bearing account at the rate of 8% per year to accumulate the purchase price? Print Done