Suppose Modern Drug wishes to borrow money from Stonebridge Bank. They agree on an annual rate of 8%. (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) Read the requirements. Requirement 1. Suppose Modern Drug agrees to repay $550 million at the end of 5 years. How much will Stonebridge Bank lend Modern Drug? Begin by selecting the formula you will need to answer this question. Present value Next, calculate how much will Stonebridge Bank lend Modern Drug under this scenario? (Round your answer to the nearest whole amount.) Requirement 2. Suppose Modern Drug agrees to repay a total of $550 million at a rate of $110 million at the end of each of the next 5 years. How much will Stonebridge Bank lend Modern Drug? Begin by selecting the formula you will need to answer this question. V = Present value Next, calculate how much will Stonebridge Bank lend Modern Drug under this scenario? (Round your answer to the nearest whole amount.) $ Present Value of Ordinary Annuity of $1 Period 3% 4% 5% 6% 7% 8% 10% 12% 14% 16% 18% 20% 1 .9709 .9615 .9524 .9434 .9346 .9259 .9091 .8929 .8772 .8621 .8475 .8333 2 1.9135 1.8861 1.8594 1.8334 1.8080 1.7833 1.7355 1.6901 1.6467 1.6052 1.5656 1.5278 3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.4869 2.4018 2.3216 2.2459 2.1743 2.1065 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.1699 3.0373 2.9137 2.7982 2.6901 2.5887 4. 5 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.7908 3.6048 3.4331 3.2743 3.1272 2.9906 6 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.3553 4.1114 3.8887 3.6847 3.4976 3.3255 7 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 4.8684 4.5638 4.2883 4.0386 3.8115 3.6046 8 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.3349 4.9676 4.6389 4.3436 4.0776 3.8372 9 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.7590 5.3282 4.9464 4.6065 4.3030 4.0310 10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.1446 5.6502 5.2161 4.8332 4.4941 4.1925 15 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 7.6061 6.8109 6.1422 5.5755 5.0916 4.6755 20 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 8.5136 7.4694 6.6231 5.9288 5.3527 4.8696 25 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.0770 7.8431 6.8729 6.0971 5.4669 4.9476 30 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 9.4269 8.0552 7.0027 6.1772 5.5168 4.9789 Print Done Present Value of $1 Period 3% 4% 5% 6% 7% 8% 10% 12% 14% 16% 18% 20% 1 .9709 .9615 .9524 .9434 .9346 .9259 .9091 .8929 .8772 .8621 .8475 .8333 2 .9426 .9246 .9070 .8900 .8734 .8573 .8264 .7972 .7695 7432 .7182.6944 3 .9151 .8890 .8638 .8396 .8163 .7938 .7513 .7118 .6750 .6407 .6086 .5787 4 .8885 .8548 .8227 .7921 .7629 .7350 .6830 .6355 .5921 .5523 .5158 4823 5 .8626 .8219 .7835 .7473 .7130 .6806 .6209 .5674 .5194 4761 4371 .4019 6 .8375 .7903 .7462 .7050 .6663 .6302 .5645 .5066 .4556 4104 .3704 .3349 7 .8131 .7599 .7107 .6651 .6227 .5835 .5132 .4523 .3996 3538 .3139 .2791 8 .7894 .7307 .6768 .6274 .5820 .5403 4665 4039 .3506 3050 .2660 .2326 9 .7664 .7026 .6446 .5919 .5439 .5002 4241 .3606 .3075 2630 .2255 .1938 10 .7441 .6756 .6139 .5584 .5083 4632 .3855 .3220 .2697 2267 .1911 .1615 15 .6419 .5553 .4810 4173 .3624 .3152 2394 .1827 .1401 1079 .0835 0649 20 .5537 .4564 .3769 .3118 .2584 .2145 .1486 .1037 .0728 .0514 .0365 .0261 25 .4776 3751 .2953 .2330 .1842 .1460 .0923 .0588 .0378 0245 .0160 .0105 30 4120 .3083 .2314 . 1741 .1314 .0994 .0573 .0334 .0196 .0116 .0070 .0042