Solve various time value of money scenarios. listed below
More Info 1. Ben just hit the jackpot in Las Vegas and won $35,000! If he invests it now at a 14% interest rate, how much will it be worth in 15 years? 2. Evan would like to have $2,500,000 saved by the time he retires in 40 years. How much does he need to invest now at a 12% interest rate to fund his retirement goal? 3. Assume that Penny accumulates savings of $2 million by the time she retires. If she invests this savings at 12%, how much money will she be able to withdraw at the end of each year for 20 years? 4. Katelyn plans to invest $6,000 at the end of each year for the next seven years. Assuming a 10% interest rate, what will her investment be worth seven years from now? 5. Assuming a 6% interest rate, how much would Jennifer have to invest now to be able to withdraw $10,000 at the end of every year for the next ten years? 6. Victor is considering a capital investment that costs $485,000 and will provide the following net cash inflows: Year Net Cash Inflow $300,000 2 ........ $200,000 3....... $98,000 Using a hurdle rate of 12%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6? Print Done Reference Future Value of $1 Periods 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 3% 1.030 1.061 1.093 1.126 1.159 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 8% 1.080 1.166 1.260 1.360 1.469 6% 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 10% 1.100 1.210 1.331 1.464 1.611 4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 1.772 1.949 2.144 2.358 2.594 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 27.393 62.669 143.371 750.378 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 4.661 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2.208 1.138 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.853 3.138 3.452 3.797 4.177 1.149 1.161 1.220 1.282 1.348 1.489 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 5.117 5.936 6.886 7.988 9.266 7.430 8.916 10.699 12.839 15.407 36.338 95.396 237.376 1,469.772 6.727 6.848 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 19.461 40.874 85.850 378.721 10.835 17.449 45.259 10.063 21.725 Print Done i Reference Present Value of Annuity of $1 st wh Periods 1% 2% 3% 4% 5% 6% 8% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 1.970 1.942 1.9131.886 1.859 1.833 1.783 2.9412.884 2.829 2.775 2.723 2.673 2.577 3.902 3.808 3.717 3.630 3.546 | 3.465 3.312 4.853 | 4.713 4.580 4.452 4.329 4.212 3.993 5.795 5.601 5.417 5.242 5.076 4.917 4.623 6.728 6.472 6.230 6.002 5.786 5.582 5.206 7.652 7.325 7.020 6.733 6.463 6.210 5.747 8.566 8.162 7.786 7.435 7.108 6.802 6.247 9.471 8.983 8.530 8.111 7.722 7.360 6.710 10.368 9.787 9.253 8.760 | 8.306 7.887 | 7.139 11.255 10.575 9.954 9.385 8.863 8.384 7.536 12.134 | 11.348 10.6359.986 9.394 8.853 7.904 13.004 12.106 11.296 10.563 9.899 9.295 8.244 13.865 12.849 11.938 11.118 10.380 9.712 8.559 18.046 16.351 14.877 13.590 12.462 | 11.470 9.818 22.023 19.523 17.413 15.622 14.094 12.783 10.675 25.808 22.396 19.600 17.292 15.372 13.765 11.258 32.835 27.355 23.115 19.793 17.159 15.046 11.925 10% 12% 14% 0.909 0.893 0.877 1.736 1.6901.647 2.487 2.402 2.322 3.170 3.037 2.914 3.791 3.605 3.433 4.355 4.111 3.889 4.868 4.564 4.288 5.335 4.968 4.639 5.759 5.328 4.946 6.145 5.650 5.216 6.495 5.938 5.453 6.814 6.194 5.660 7.103 6.424 5.842 7.367 7.367 6.628 6.002 7.606 6.811 6.142 8.514 | 7.469 6.623 9.077 7.8436.873 9.427 8.0 9.7798.244 7.105 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 | 4.344 4.607 | 4.833 18% 0.847 1.566 | 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 5.029 5.197 5.342 5.468 5.575 5.929 6.097 6.177 6.233 4.656 4.793 4.910 5.008 5.092 5.353 5.467 5.517 5.548 Print Done i Reference Periods 8% 1% 1.000 2.010 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 14% 1.000 2.140 3.440 4.921 6.610 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 Future Value of Annuity of $1 5% 6% 10% 1.000 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 11.491 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 24.215 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 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 8.536 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 43.842 91.025 181.871 356.787 1,342.025 16% 18% 1.000 1.000 2.160 2.180 3.506 3.572 5.066 5.215 6.877 7.154 8.977 9.442 11.414 12.142 14.240 15.327 17.519 19.086 21.321 23.521 25.733 28.755 30.850 34.931 36.786 42.219 43.672 50.818 51.660 60.965 115.380 146.628 249.214 342.603 530.312790.948 2,360.757 4,163.213 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 186.688 471.981 1,181.882 7,343.858 26.870 36.459 47.575 75.401 Print Done
