Tony Bogut just received a signing bonus of $986,200. His plan is to invest this payment in a fund that will earn 6%, compounded annually.

(Factor tables)

Future Value of 1:

Present Value of 1

If Bogut plans to establish the AB Foundation once the fund grows to $1,666,165, how many years until he can establish the foundation? ________ years

Instead of investing the entire $986,200, Bogut invests $270,000 today and plans to make 9 equal annual investments into the fund beginning one year from today. What amount should the payments be if Bogut plans to establish the $1,666,165 foundation at the end of 9 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Payment $_________

(n) Periods 12345 67899 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 2% 1.02000 1.04040 1.06121 1.08243 1.10408 1.12616 1.14869 1.17166 1.19509 1.21899 1.24337 1.26824 1.29361 1.31948 1.34587 1.37279 1.40024 1.42825 1.45681 1.48595 1.51567 1.54598 1.57690 1.60844 1.64061 1.67342 1.70689 1.74102 1.77584 1.81136 1.84759 1.88454 1.92223 1.96068 1.99989 2.03989 2.08069 2.12230 2.16474 2.20804 2% 1.02500 1.05063 1.07689 1.10381 1.13141 1.15969 1.18869 1.21840 1.24886 1.28008 1.31209 1.34489 1.37851 1.41297 1.44830 1.48451 1.52162 1.55966 1.59865 1.63862 1.67958 1.72157 1.76461 1.80873 1.85394 1.90029 1.94780 1.99650 2.04641 2.09757 2.15001 2.20376 2.25885 2.31532 2.37321 2.43254 2.49335 2.55568 2.61957 2.68506 FVFn = (1 + i)" 3% 1.03000 1.06090 1.09273 1.12551 1.15927 1.19405 1.22987 1.26677 1.30477 1.34392 1.38423 1.42576 1.46853 1.51259 1.55797 1.60471 1.65285 1.70243 1.75351 1.80611 1.86029 1.91610 1.97359 2.03279 2.09378 2.15659 2.22129 2.28793 2.35657 2.42726 2.50008 2.57508 2.65234 2.73191 2.81386 2.89828 2.98523 3.07478 3.16703 3.26204 4% 1.04000 1.08160 1.12486 1.16986 1.21665 1.26532 1.31593 1.36857 1.42331 1.48024 1.53945 1.60103 1.66507 1.73168 1.80094 1.87298 1.94790 2.02582 2.10685 2.19112 2.27877 2.36992 2.46472 2.56330 2.66584 2.77247 2.88337 2.99870 3.11865 3.24340 3.37313 3.50806 3.64838 3.79432 3.94609 4.10393 4.26809 4.43881 4.61637 4.80102 5% 1.05000 1.10250 1.15763 1.21551 1.27628 1.34010 1.40710 1.47746 1.55133 1.62889 1.71034 1.79586 1.88565 1.97993 2.07893 2.18287 2.29202 2.40662 2.52695 2.65330 2.78596 2.92526 3.07152 3.22510 3.38635 3.55567 3.73346 3.92013 4.11614 4.32194 4.53804 4.76494 5.00319 5.25335 5.51602 5.79182 6.08141 6.38548 6.70475 7.03999 6% 1.06000 1.12360 1.19102 1.26248 1.33823 1.41852 1.50363 1.59385 1.68948 1.79085 1.89830 2.01220 2.13293 2.26090 2.39656 2.54035 2.69277 2.85434 3.02560 3.20714 3.39956 3.60354 3.81975 4.04893 4.29187 4.54938 4.82235 5.11169 5.41839 5.74349 6.08810 6.45339 6.84059 7.25103 7.68609 8.14725 8.63609 9.15425 9.70351 10.28572 8% 1.08000 1.16640 1.25971 1.36049 1.46933 1.58687 1.71382 1.85093 1.99900 2.15892 2.33164 2.51817 2.71962 2.93719 3.17217 3.42594 3.70002 3.99602 4.31570 4.66096 5.03383 5.43654 5.87146 6.34118 6.84847 7.39635 7.98806 8.62711 9.31727 10.06266 10.86767 11.73708 12.67605 13.69013 14.78534 15.96817 17.24563 18.62528 20.11530 21.72452 9% 1.09000 1.18810 1.29503 1.41158 1.53862 1.67710 1.82804 1.99256 2.17189 2.36736 2.58043 2.81267 3.06581 3.34173 3.64248 3.97031 4.32763 4.71712 5.14166 5.60441 6.10881 6.65860 7.25787 7.91108 8.62308 9.39916 10.24508 11.16714 12.17218 13.26768 14.46177 15.76333 17.18203 18.72841 20.41397 22.25123 24.25384 26.43668 28.81598 31.40942 10% 1.10000 1.21000 1.33100 1.46410 1.61051 1.77156 1.94872 2.14359 2.35795 2.59374 2.85312 3.13843 3.45227 3.79750 4.17725 4.59497 5.05447 5.55992 6.11591 6.72750 7.40025 8.14028 8.95430 9.84973 10.83471 11.91818 13.10999 14.42099 15.86309 17.44940 19.19434 21.11378 23.22515 25.54767 28.10244 30.91268 34.00395 37.40434 41.14479 45.25926 11% 1.11000 1.23210 1.36763 1.51807 1.68506 1.87041 2.07616 2.30454 2.55803 2.83942 3.15176 3.49845 3.88328 4.31044 4.78459 5.31089 5.89509 6.54355 7.26334 8.06231 8.94917 9.93357 11.02627 12.23916 13.58546 15.07986 16.73865 18.57990 20.62369 22.89230 25.41045 28.20560 31.30821 34.75212 38.57485 42.81808 47.52807 52.75616 58.55934 65.00087 12% 1.12000 1.25440 1.40493 1.57352 1.76234 1.97382 2.21068 2.47596 2.77308 3.10585 3.47855 3.89598 4.36349 4.88711 5.47357 6.13039 6.86604 7.68997 8.61276 9.64629 10.80385 12.10031 13.55235 15.17863 17.00000 19.04007 21.32488 23.88387 26.74993 29.95992 33.55511 37.58173 42.09153 47.14252 52.79962 59.13557 66.23184 74.17966 83.08122 93.05097 15% 1.15000 1.32250 1.52088 1.74901 2.01136 2.31306 2.66002 3.05902 3.51788 4.04556 4.65239 5.35025 6.15279 7.07571 8.13706 9.35762 10.76126 12.37545 14.23177 16.36654 18.82152 21.64475 24.89146 28.62518 32.91895 37.85680 43.53532 50.06561 57.57545 66.21177 76.14354 87.56507 100.69983 115.80480 133.17552 153.15185 176.12463 202.54332 232.92482 267.86355 (n) Periods 1 2 3 4 5 678910 1 12 13 4 15 11 14 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (n) Periods 1 2345 67890 10 F213415 167181920 2122 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 2% .98039 .96117 .94232 .92385 .90573 .88797 .87056 .85349 .83676 .82035 .80426 .78849 .77303 .75788 .74301 .72845 .71416 .70016 .68643 .67297 .65978 .64684 .63416 .62172 .60953 .59758 .58586 .57437 .56311 .55207 .54125 .53063 .52023 .51003 .50003 .49022 .48061 .47119 .46195 .45289 PVFn,i = 2% .97561 .95181 .92860 .90595 .88385 .86230 .84127 .82075 .80073 .78120 .76214 .74356 .72542 .70773 .69047 .67362 .65720 .64117 .62553 .61027 .59539 .58086 .56670 .55288 .53939 .52623 .51340 .50088 .48866 .47674 .46511 .45377 .44270 .43191 .42137 .41109 .40107 .39128 .38174 .37243 1 (1 + i)" 3% .97087 .94260 .91514 .88849 .86261 .83748 .81309 .78941 .76642 .74409 .72242 .70138 .68095 .66112 .64186 .62317 .60502 .58739 .57029 .55368 .53755 .52189 .50669 .49193 .47761 .46369 .45019 .43708 .42435 .41199 .39999 .38834 .37703 .36604 .35538 .34503 .33498 .32523 .31575 .30656 = (1 + i)" 4% .96154 .92456 .88900 .85480 .82193 .79031 .75992 .73069 .70259 .67556 .64958 .62460 .60057 .57748 .55526 .53391 .51337 .49363 .47464 .45639 .43883 .42196 .40573 .39012 .37512 .36069 .34682 .33348 .32065 .30832 .29646 28506 .27409 .26355 .25342 .24367 .23430 .22529 .21662 .20829 5% .95238 .90703 .86384 .82270 .78353 .74622 .71068 .67684 .64461 .61391 .58468 .55684 .53032 .50507 .48102 .45811 .43630 .41552 .39573 .37689 .35894 .34185 .32557 .31007 29530 .28124 .26785 25509 .24295 .23138 .22036 .20987 .19987 .19035 .18129 .17266 .16444 .15661 .14915 .14205 6% .94340 .89000 .83962 .79209 .74726 .70496 .66506 .62741 .59190 .55839 .52679 .49697 .46884 .44230 .41727 .39365 .37136 .35034 .33051 .31180 .29416 .27751 .26180 .24698 .23300 .21981 .20737 .19563 .18456 .17411 .16425 .15496 .14619 .13791 .13011 .12274 .11579 .10924 .10306 .09722 8% .92593 .85734 .79383 .73503 .68058 .63017 .58349 .54027 .50025 .46319 .42888 .39711 .36770 .34046 .31524 .29189 .27027 .25025 .23171 .21455 .19866 .18394 .17032 .15770 .14602 .13520 .12519 .11591 .10733 .09938 .09202 .08520 .07889 .07305 .06763 .06262 .05799 .05369 .04971 .04603 9% .91743 .84168 .77218 .70843 .64993 .59627 .54703 .50187 .46043 .42241 .38753 .35554 .32618 .29925 .27454 .25187 .23107 .21199 .19449 .17843 .16370 .15018 .13778 .12641 .11597 .10639 .09761 .08955 .08216 .07537 .06915 .06344 .05820 .05340 .04899 .04494 .04123 03783 .03470 .03184 10% .90909 .82645 .75132 .68301 .62092 .56447 .51316 .46651 .42410 .38554 .35049 .31863 .28966 .26333 .23939 .21763 .19785 .17986 .16351 .14864 .13513 .12285 .11168 .10153 .09230 .08391 .07628 .06934 .06304 .05731 .05210 .04736 .04306 .03914 .03558 .03235 .02941 .02674 .02430 .02210 11% .90090 .81162 .73119 .65873 .59345 .53464 .48166 .43393 .39092 .35218 .31728 .28584 .25751 .23199 .20900 .18829 .16963 .15282 .13768 .12403 .11174 .10067 .09069 .08170 .07361 .06631 .05974 .05382 .04849 .04368 .03935 .03545 .03194 .02878 .02592 .02335 .02104 .01896 .01708 .01538 12% .89286 .79719 .71178 .63552 .56743 .50663 .45235 40388 .36061 .32197 .28748 .25668 .22917 .20462 .18270 .16312 .14564 .13004 .11611 .10367 .09256 .08264 .07379 .06588 .05882 .05252 .04689 .04187 .03738 .03338 .02980 .02661 .02376 .02121 .01894 .01691 .01510 .01348 .01204 .01075 15% .86957 .75614 .65752 .57175 .49718 .43233 .37594 .32690 .28426 .24719 .21494 .18691 .16253 .14133 .12289 .10687 .09293 .08081 .07027 .06110 .05313 .04620 .04017 .03493 .03038 .02642 .02297 .01997 .01737 .01510 .01313 .01142 .00993 .00864 .00751 .00653 .00568 .00494 .00429 .00373 (n) Periods 1 2 3 4 5 6 7890 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40