Helen wants to take the next four years off work to travel around the world. She estimates her annual cash needs at $31,000 (if she needs more, she will work odd jobs). Helen believes she can invest her savings at 10% until she depletes her funds. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) Read the requirements. Requirement 1. How much money does Helen need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 10% interest rate, Helen needs $ Requirement 2. After speaking with a number of banks, Helen learns she will only be able to invest her funds at 6%. How much does she need now to fund her travels? (Round your answer to the nearest whole dollar.) With a 6% interest rate, Helen would need $ If Helen's savings are earning a lower interest rate (6%), she will need to save to be able to withdraw $31,000 per year. Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 16% 18% 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 2 3 4 5 6 7 8 9 10 11 0.135 0.215 0.195 0.162 0.168 0.137 12 13 14 7% 8% 9% 10% 12% 14% 15% 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.112 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 0.350 0.296 0.250 0.212 0.180 0.130 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.312 0.258 0.215 0.178 0.149 0.294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 0.102 0.066 0.043 0.035 0.028 0.019 0.013 0.092 0.059 0.038 0.084 0.053 0.076 0.047 0.042 0.037 15 16 0.853 0.728 17 0.844 0.714 0.623 0.605 0.587 0.570 18 0.836 0.700 0.494 0.416 19 0.828 0.686 0.475 0.396 0.095 0.081 0.069 0.051 0.038 0.070 0.060 0.043 0.031 0.061 0.051 0.037 0.026 20 0.820 0.673 0.554 0.456 0.377 0.104 0.073 21 0.811 0.660 0.538 0.439 0.359 22 0.803 0.647 0.522 0.422 0.342 23 0.795 0.634 0.507 0.406 0.326 0.262 0.211 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.116 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.030 0.024 0.016 0.010 26 0.135 0.106 0.772 0.598 0.764 0.586 27 28 0.033 0.026 0.021 0.014 0.009 0.029 0.023 0.018 0.011 0.007 0.026 0.020 0.016 0.010 0.006 0.022 0.017 0.014 0.008 0.005 0.004 29 0.464 0.361 0.281 0.220 0.172 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.757 0.574 0.437 0.333 0.255 0.196 0.150 0.116 0.090 0.069 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.749 0.563 0.424 30 0.742 0.552 0.412 0.033 0.020 0.015 0.012 0.007 40 0.001 0.011 0.005 0.004 0.003 0.001 0.009 0.003 0.001 0.001 0.001 50 0.608 Print Done Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 12% 14% 15% 1 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.140 1.150 8% 1.080 1.166 1.260 2 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.120 1.254 1.331 1.405 1.482 1.521 1.300 1.323 3 1.030 1.061 1.093 1.125 1.158 1.191 1.225 4 1.041 1.082 1.360 1.412 1.464 1.574 1.689 1.749 1.126 1.159 1.170 1.216 1.262 1.311 1.217 1.276 1.338 1.403 5 1.051 1.104 1.469 1.539 1.611 1.762 1.925 2.011 6 1.062 1.126 1.677 1.772 1.194 1.265 1.230 1.316 1.340 1.419 1.501 1.407 1.504 1.606 7 1.072 1.149 1.828 1.993 2.144 1.974 2.195 2.313 1.949 2.211 2.502 2.660 3.059 8 1.083 1.172 1.267 1.369 1.587 1.714 1.718 1.851 1.999 2.159 2.367 2.594 1.477 1.594 9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 2.172 2.358 2.476 2.853 2.773 3.252 3.518 3.106 3.707 4.046 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 2.252 2.518 2.813 3.138 3.896 4.818 12 1.127 1.268 1.426 1.601 1.796 2.012 5.350 13 1.138 1.294 1.469 1.665 1.886 2.133 3.452 4.363 5.492 6.153 14 1.149 1.319 1.513 1.732 1.980 2.410 2.720 3.066 3.342 3.642 3.798 4.887 6.261 2.261 2.579 2.937 3.172 7.076 15 1.161 1.346 1.558 1.801 2.079 2.397 2.759 4.177 5.474 7.138 8.137 16 1.173 1.373 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 1.605 1.653 1.948 17 1.184 1.400 2.292 2.693 3.159 3.700 4.328 6.866 9.276 10.76 5.054 5.560 7.690 10.58 12.38 18 1.196 1.428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 1.208 1.457 1.754 2.107 2.527 3.026 3.617 19 20 1.220 1.486 1.806 4.316 5.142 6.116 8.613 12.06 14.23 4.661 5.604 6.727 9.646 13.74 16.37 2.191 2.653 3.207 3.870 21 22 23 24 25 26 1.232 1.516 1.860 2.279 2.786 3.400 4.141 5.034 6.109 7.400 10.80 15.67 18.82 1.245 1.546 1.916 2.370 2.925 3.604 4.430 5.437 6.659 8.140 12.10 17.86 21.64 1.257 1.577 1.974 2.465 3.072 3.820 4.741 5.871 7.258 8.954 13.55 20.36 24.89 1.270 1.608 2.033 2.563 3.225 4.049 5.072 6.341 7.911 9.850 15.18 23.21 28.63 1.282 1.641 2.094 2.666 3.386 4.292 5.427 6.848 8.623 10.83 17.00 26.46 32.92 2.772 3.556 4.549 5.807 7.396 9.399 11.92 19.04 30.17 37.86 2.883 3.733 4.822 6.214 7.988 10.25 13.11 21.32 34.39 43.54 2.999 3.920 5.112 6.649 8.627 11.17 14.42 23.88 39.20 3.119 4.116 5.418 7.114 9.317 12.17 15.86 26.75 44.69 3.243 4.322 5.743 7.612 10.06 13.27 17.45 7.040 10.29 14.97 21.72 31.41 45.26 1.295 1.673 27 2.157 1.308 1.707 2.221 1.321 1.741 2.288 50.07 28 29 1.335 1.776 2.357 57.58 30 1.348 1.811 2.427 29.96 50.95 66.21 40 1.489 2.208 3.262 4.801 93.05 188.9 267.9 50 1.645 2.692 4.384 7.107 11.47 18.42 29.46 46.90 74.36 117.4 289.0 700.2 1,084 Print Done 9% 10% 1.090 1.100 1.188 1.210 1.295 X Reference Present Value of Ordinary Annuity of $1 2% 4% 15% 16% Periods 1% 18% 20% 3% 5% 0.971 0.962 0.952 1 0.990 0.980 0.833 2 1.970 1.942 1.913 2.884 2.829 4 2.941 3.902 3.808 3.717 4.853 5 4.713 4.580 6 5.795 5.601 5.417 7 6.728 6.472 6.230 6.002 8 5.335 4.968 9 10 11 12 13 14 15 6% 7% 8% 9% 10% 12% 14% 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 4.639 4.487 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.192 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.421 5.197 4.793 4.439 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4.533 13.004 12.106 11.296 10.563 9.895 9.295 8.745 8.244 7.786 7.367 6.62 6.002 5.72 5.468 5.008 4.611 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4.844 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 6.011 5.410 4.909 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 6.044 5.432 4.925 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 6.073 5.451 4.937 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.464 6.097 5.467 4.948 22.795 20.121 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161 7.896 6.906 6.491 6.118 5.480 4.956 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.935 6.514 6.136 5.492 4.964 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 6.961 6.534 6.152 5.502 4.970 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.022 6.983 6.551 6.166 5.510 4.975 30 25.808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.566 6.177 5.517 4.979 40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.244 7.105 6.642 6.233 5.548 4.997 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 8.304 7.133 6.661 6.246 5.554 4.999 16 17 18 14.718 13.578 12.561 11.652 15.562 14.292 13.166 12.166 16.398 14.992 13.754 12.659 11.690 17.226 15.678 14.324 13.134 12.085 18.046 16.351 14.877 13.590 12.462 19 20 21 22 23 24 25 26 27 28 29 50 Print Done Reference Future Value of Ordinary Annuity of $1 Periods 1% 2% 3% 14% 15% 1 8% 9% 1.000 1.000 1.000 2.080 2.090 2.100 1.000 1.000 1.000 2.010 2.020 2.030 1.000 1.000 2 1.000 2.120 2.140 2.150 3.473 3 4 4.993 5 4% 5% 6% 7% 1.000 1.000 1.000 1.000 2.040 2.050 2.060 2.070 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 4.060 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.779 4.921 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.152 6.308 6.468 6.633 6.802 6.975 7.153 7.336 7.523 7.716 8.115 7.214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 8.892 9.214 9.549 9.897 10.260 10.64 11.03 11.44 11.49 11.98 12.49 13.02 13.58 6.742 6 8.536 8.754 10.09 10.73 11.07 7 8 8.286 8.583 9 9.369 9.755 10.16 10.58 11.03 12.30 13.23 13.73 14.78 16.09 15.19 15.94 17.55 16.79 10 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 19.34 20.30 11 11.57 12.17 12.81 13.49 14.21 14.97 15.78 20.65 23.04 24.35 12 12.68 13.41 14.19 15.03 15.92 16.87 17.89 16.65 17.56 18.53 18.98 20.14 21.38 24.13 27.27 29.00 21.50 22.95 24.52 28.03 32.09 34.35 24.21 26.02 27.98 32.39 37.58 40.50 13 13.81 14.68 15.62 16.63 17.71 18.88 20.14 14 14.95 15.97 17.09 18.29 19.60 21.02 22.55 15 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 31.77 37.28 43.84 47.58 16 17.26 18.64 20.16 21.82 23.66 25.67 27.89 35.95 42.75 50.98 55.72 30.32 33.00 33.75 36.97 17 18.43 20.01 21.76 23.70 25.84 28.21 30.84 18 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 19.61 21.41 20.81 22.84 19 25.12 27.67 30.54 33.76 37.38 41.45 45.76 20 22.02 24.30 26.87 29.78 33.07 36.79 41.00 21 40.54 48.88 59.12 65.08 55.75 68.39 75.84 46.02 51.16 63.44 78.97 88.21 51.16 57.28 72.05 91.02 102.4 23.24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 24.47 27.30 30.54 34.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 25.72 28.85 32.45 36.62 41.43 47.00 53.44 60.89 69.53 79.54 104.6 138.3 159.3 26.97 30.42 34.43 39.08 44.50 50.82 58.18 66.76 76.79 88.50 118.2 158.7 28.24 32.03 36.46 41.65 47.73 63.25 73.11 84.70 22 23 24 184.2 25 54.86 98.35 133.3 181.9 212.8 26 29.53 33.67 38.55 44.31 51.11 59.16 109.2 150.3 208.3 27 30.82 35.34 40.71 47.08 28 29 32.13 37.05 42.93 49.97 33.45 38.79 45.22 52.97 34.78 40.57 47.58 56.08 95.03 68.68 79.95 93.32 245.7 54.67 63.71 74.48 87.35 102.7 121.1 169.4 238.5 283.6 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1 62.32 73.64 87.35 104.0 124.1 148.6 214.6 312.1 377.2 66.44 79.06 94.46 113.3 136.3 164.5 241.3 356.8 434.7 120.8 154.8 199.6 259.1 337.9 442.6 767.1 1,342 1,779 209.3 290.3 406.5 573.8 815.1 1,164 2,400 4,995 7,218 30 40 48.89 60.40 75.40 50 64.46 84.58 112.8 152.7 Print Done I 10% 12%