Use X% = 9 At the bottom of this page is a Present Value Interest Table that you should use to solve this. Suppose that you want to buy a car in 3 years. The price of the car is $15,000. You are able to save money at a rate of X%. How much money will you have to save today to have enough to buy the car? Part (A) worth 8 points: What present value interest factor do you need to solve this problem. Use the attached Table II to find the factor: Part (B) worth 2 points: How much money do you need to save today. Make sure to show your work using the present value interest factor in part (a) above. Present Value Interest Factors (PVIFS) for $1 at Interest Rate i for n Periods Period, n 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 0 1.000 1.000 1.000 0.990 0.980 0.971 1 2 3 4 5 6 7 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 8 9 10 11 12 13 14 At the bottom of this page is a Present Value Interest lable that you should use to solve this. Suppose that you want to buy a car in 3 years. The price of the car is $15,000. You are able to save money at a rate of X%. How much money will you have to save today to have enough to buy the car? Part (A) worth 8 points: What present value interest factor do you need to solve this problem. Use the attached Table II to find the factor: Part (B) worth 2 points: How much money do you need to save today. Make sure to show your work using the present value interest factor in part (a) above. Present Value Interest Factors (PVIFs) for $1 at Interest Rate i for n Periods Period, n 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 9% 10% 11% 12% 13% 1.000 1.000 1.000 1.000 1.000 0.917 0.909 0.901 0.893 0.885 0.842 0.826 0.812 0.797 0.783 0.772 0.751 0.731 0.712 0.693 0.708 0.683 0.659 0.636 0.613 1% 2% 3% 4% 5% 6% 7% 8% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 Please type your answer below
