Sove Help Save & Exit Patricia wants to invest a sum of money today that will yield $23,000 at the end of 6 years. Assuming she can earn an interest rate of 6% compounded annually, how much must she invest today? (PV of $1. FV of $1. PVA of $1. and EVA of S1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $13.800 $19,104 $16,215 $20,254 $21620 TABLE B.1" Present Value of 1 p=1/(1+ ir Rate Periods 2% 5% 6% 7% 94 10% 12 152 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 0.9803 0.9705 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 0.8874 0.8787 0.8700 0.8613 0.8528 0.8444 0.8360 0.8277 0.8195 0.7798 0.7419 0.7059 0.6717 0.9804 0.9612 0.9423 0.9238 0.9057 0.8880 0.8706 0.8535 0.8368 0.8203 0.8043 0.7885 0.7730 0.7579 0.7430 0.7284 0.7142 0.7002 0.6864 0.6730 0.6095 0.5521 0.5000 0.4529 0.9709 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.7441 0.7224 0.7014 0.6810 0.6611 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 0.4776 0.4120 0.3554 0.3066 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 0.5339 0.5134 0.4936 0.4746 0.4564 0.3751 0.3083 0.2534 0.2083 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 06446 0.6139 0.5847 0.5568 0.5303 0.5051 0.4810 0.4581 0.4363 0.4155 0.3957 0.3769 0.2953 0.2314 0.1813 0.1420 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.5268 0.4970 0.4688 0.4423 0.4173 0.3936 0.3714 0.3503 0.3305 03118 0.2330 0.1741 0.1301 0.0972 0.9345 0.8734 0.8163 0.7629 0.7130 0.6663 0.6227 0.5820 0.5439 0.5083 0.4751 0.4440 0.4150 0.3878 0.3624 0.3387 0.3166 0.2959 0.2765 0.2584 0.1842 0.1314 0.0937 0.0668 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 0.4289 0.3971 0.3677 0.3405 0.3152 0.2919 0.2703 0.2502 0.2317 0.2145 0.1460 0.0994 0.0676 0.0460 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4604 0.4224 0.3875 0.3555 0.3262 0.2992 0.2745 0.2519 0.2311 0.2120 0.1945 0.1784 0.1160 0.0754 0.0490 0.0318 0.9091 08929 0 3696 0.8264 0.7972 0.7561 0.7513 0.7118 0.6575 0.6830 0.6355 0.5718 0.6209 0.5674 0.4972 0.5645 0.5066 0.4323 0.5132 0.4523 0.3759 0.4665 0.4039 0.3269 0.4241 0.3606 0.2843 0.3855 0.3220 0.2472 0.3505 0.2875 0.2149 0.3186 0.2567 0.1869 0.2897 0.2292 0.1625 0.2633 0.2046 0.1413 0.2394 0.1827 0.1229 0.2176 0.1631 0.1069 0.1978 0.1456 0.0929 0.1799 0.1300 0.0808 0.1635 0.1161 0.0103 0.1486 0.1037 0.0611 0.0923 0.0588 0.0304 0.0573 0.0334 0.0151 0.0356 0.0189 0.0075 0.0221 0.0107 0.0031 Used to compute the present value of a known future amount. For example: How much would you need to invest today at 10% compounded semiannually to accumulate 5. in 6 years from today ? Lising the factors of n = 12 and 1= 35 (12 semiannual periods and a semiannual rate of the factor is 0.5568. You would need to invest 52,784 today (SSDOO X0.5508) TABLE B.3: p=(1-a+ (1 + i)" Present Value of an Annuity of 1 Rate Periods 2% 3% 4% 5% 6% 7% 9% 10% 12% 15% 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 1.9704 2.9410 3.9020 4.8534 5.7955 6.7282 7.6517 8.5660 9.4713 10.3676 11.2551 12.1337 13.0037 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 22.0232 25.8077 29.4086 32.8347 0.9804 1.9416 2.8839 3.8077 4.7135 5.6014 6.4720 7.3255 8.1622 8.9826 9.7868 10.5753 11.3484 12.1062 12.8493 13.5777 14.2919 14.9920 15.6785 16.3514 19.5235 22.3965 24.9986 27.3555 0.9709 1.9135 2.8286 3.7171 4.5797 5.4172 6.2303 7.0197 7.7861 8.5302 9.2526 9.9540 10.6350 11.2961 11.9379 12.5611 13.1661 13.7535 14.3238 14.8775 17.4131 19.6004 21.4872 23.1148 0.9615 1.8861 2.7751 3.6299 4.4518 5.2421 6.0021 6.7327 7.4353 8.1109 8.7605 9.3851 9.9856 10.5631 11.1184 11.6523 12.1657 12.6593 13.1339 13.5903 15.6221 17.2920 18.6646 19.7928 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217 8.3064 8.8633 9.3936 9.8986 10.3797 10.8378 11.2741 11.6896 12.0853 12.4622 14.0939 15.3725 16.3742 17.1591 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 7.3601 7.8869 8.3838 8.8527 9.2950 9.7122 10.1059 10.4773 10.8276 11.1581 11.4699 12.7834 13.7648 14.4982 15.0463 0.9346 1.8080 2.6243 3.3872 4.1002 4.7665 5.3893 5.9713 6.5152 7.0236 7.4987 7.9427 8.3577 8.7455 9.1079 9.4466 9.7632 10.0591 10.3356 10.5940 11.6536 12.4090 12.9477 13.3317 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.6748 11.2578 11.6546 11.9246 0.9174 0.9091 0.8929 0.8696 1.7591 1.7355 1.6901 1.6257 2.5313 2.4859 2.4018 2.2832 3.2397 3.1699 3.0373 2 8550 3.8897 3.7908 3.6048 3.3522 4.4859 4.3553 4.1114 3.7845 5.0330 4.8684 4.5638 4.1604 5.5348 5.3349 4.9676 4.4873 5.9952 5.7590 5.3282 4.7716 6.4177 6.1446 5.6502 5.0188 6.8052 6.4951 5.9377 5.2337 7.1607 6.8137 6.1944 5.4206 7.4869 7.1034 6.4235 5.5831 7.7862 7.3667 6.6282 5.7245 8.0607 7.6061 6.8109 5.8474 8.3126 7.8237 6.9740 5.9542 8.5436 8.0216 7.1196 6.0472 8.7556 8.2014 7.2497 6.1280 8.9501 8.3649 7.3658 6.1982 9.1285 8.5136 7.4694 6.2593 9.8226 9.0770 7.8431 6.4641 10.2737 9.4269 8.0552 6.5660 10.5668 9.6442 8.1755 6.6166 10.7574 9.7791 8.2438 6.6418 Used to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2,000 per year for 10 years assuming ent of $12.835 today ($2.000 X 6AITI)