Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose):

Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose) (Click the icon to view the scenarios.) (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 $1 table.) (Click the icon to view Future Value Ordinary of Annuity of $1 table) Read the requirements Requirement 1 Requirements resent value of each scenario using a 6% discount rate. Which scenario yields the highest present value? Round to the nearest dollar Begin by calculating the present value of each scenario using a 6% discount rate. (Round the amounts to the nearest dollar) Present Value Scenario1 Scenario 2 Scenario appears to be the best option. Based on a 6% discount rate, its present value is the Requirement 2. Would your preference change if you used a 12% discount rate? Begin by calculating the present value of each scenario using a 12% discount rate. (Round the amounts to the nearest dollar.) Present Value Scenario1 Scenario 2 Scenario Using a 12% discount rate V change the preference in this problem -X More Info 1. $7,750 per year at the end of each of the next five years 2. $49,950 (ump sum) now 3. $100,050 (lump sum) five years from now Print Done Reference Present Value of $1 Periods 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% | 1636 | 1896 | 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 2 0.980 0.961 0.943 0.9250.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.6750.658 0.641 0.609 0.579 4 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 5 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 6 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 7 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 8 0.923 0.853 0.789 0.7310.677 0.627 0.582 0.540 0.502 0.467 0.404 0.3510.327 0.305 0.266 0.233 9 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 10 0.905 0.820 0.744 0.6760.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.2370.215 0.195 0.162 0.135 12 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 0.168 0.137 0.112 13 0.879 0.773 0.681 0.6010.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 14 0.870 0.758 0.661 0.5770.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 15 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 16 0.853 0.728 0.623 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 17 0.844 0.714 0.605 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 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 20 0.820 0.673 0.554 0.4560.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 23 0.795 0.634 0.507 0.4060.326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 Print Done Reference Present Value of Ordinary Annuity of $1 Periods 196 | 2% | 396 | 496 | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% | 16% | 1896 | 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 2 1.9701.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.6471.626 1.605 1.566 1.528 3 2.941 2.884 2.829 2.7752.723 2.673 2.624 2.5772.531 2.487 2.402 2.3222.283 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.7982.690 2.589 5 4.853 4.713 4.5804.4524.329 4.212 4.100 3.993 3.890 3.791 3.605 3.4333.352 3.274|3.127 2.991 6 5.795 5.601 5.417 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 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.7475.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 9 8.566 8.162 7.786 7.4357.108 6.802 6.515 6.2475.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 10 9.471 8.983 8.530 8.1117.722 7.3607.024 6.710 6.418 6.145 5.650 5.216 5.0194.833 4.494 4.192 11 10.368 9.787 9.253 8.760 8.306 7.8877.499 7.139 6.805 6.495 5.938 5.453 5.2345.029 4.656 4.327 12 11.25510.575 9.954 9.385 8.863 8.384 7.9437.536 7.161 6.814 6.1945.660 5.421 5.197 4.793 4.439 13 12.134 11.348 10.635 9.986 9.3948.853 8.3587.9047.487 7.103 6.424 5.842 5.5835.342 4.910 4.533 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.0025.724|5.468 5.008 4.611 15 13.86512.849 11.93811.11810.380 9.712 9.108 8.559 8.061 7.606 6.811 6.1425.847 |5.575 5.092 4.675 16 14.71813.57812.56111.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.2655.9545.669 5.162 4.730 17 15.56214.292 13.166 12.16611.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 18 16.39814.992 13.75412.65911.690 10.828 10.059 9.372 8.756 8.201 7.250 6.4676.1285.818 5.273 4.812 19 17.226 15.67814.324 13.13412.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.1985.877 5.316 4.844 20 18.046 16.351 14.87713.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.9295.353 4.870 21 18.857 17.011 15.41514.029 12.821 11.764 10.836 10.017| 9.292 8.649 7.562 6.6876.3125.9735.384 4.891 22 19.660 17.65815.937 14.451 13.163 12.042 11.061 10.201 9.442 8.7727.645 6.743 6.359 6.0115.410 4.909 23 20.45618.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.7926.399 6.0445.432 4.925 24 21.243 18.914 16.93615.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 6.0735.451 4.937 25 22.023 19.523 17.413 15.62214.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.464 6.097 5.467 4.948 Print Done Reference Future Value of $1 Periods 196 | 296 | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 1296 | 1496 | 15% | | 1.010 | 1.020 | 1.030 | 1.040 | 1.050 | 1.060 | 1.070 | 1.080 | 1.090 | 1.1 00 | 1.1 20 1 1.1 40 | 1.1 50 2 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 1.210 1.254 1.300 1.323 3 1.030 1.061 1.093 1.1251.158 1.191 1.225 1.260 1.295 1.331 1.405 1.4821.521 4 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.412 1.464 1.574 1.6891.749 5 1.051 1.1041.159 1.2171.276 1.338 1.403 1.469 1.539 1.611 1.7621.925 2.011 6 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 2.195 2.313 7 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.2112.5022.660 8 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 2.4762.853 3.059 9 1.094 1.195 1.305 1.4231.551 1.689 1.838 1.999 2.172 2.358 2.773 3.2523.518 10 1.105 1.219 1.344 1.4801.629 1.791 1.967 2.159 2.367 2.594 3.106 3.7074.046 11 1.116 1.243 1.384 1.5391.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 13 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 14 1.149 1.3191.513 1.732 1.980 2.261 2.579 2.937 3.342 3.798 4.887 6.261 7.076 15 1.161 1.346 1.558 1.8012.079 2.397 2.759 3.172 3.642 4.177 5.474 7.138 8.137 16 1.173 1.373 1.605 1.8732.183 2.540 2.952 3.426 3.970 4.595 6.130 8.1379.358 17 1.184 1.400 1.653 1.9482.292 2.693 3.159 3.700 4.328 5.054 6.866 9.276 10.76 18 1.196 1.428 1.702 2.0262.407 2.854 3.380 3.996 4.717 5.560 7.690 10.58 12.38 19 1.208 1.457 1.754 2.1072.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 20 1.220 1.486 1.806 2.1912.653 3.207 3.870 4.661 5.604 6.727 9.646 13.74 16.37 21 1.232 1.516 1.860 2.279 2.7863.400 4.141 5.034 6.109 7.400 10.80 15.67 18.82 22 1.245 1.546 1.916 2.3702.925 3.604 4.430 5.437 6.659 8.140 12.10 17.86 21.64 23 1.257 1.577 1.974 2.4653.072 3.820 4.741 5.871 7.258 8.954 13.55 20.36 24.89 24 1.270 1.608 2.033 2.563 3.2254.049 5.0726.3417.911 9.850 15.18 23.21 28.63 25 1.282 1.641 2.094 2.6663.3864.292 5.427 6.848 8.623 10.83 17.00 26.46 32.92 3 1 3 Print Done Reference Future Value of Ordinary Annuity of $1 Periods 196 | 296 | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 1296 | 1496 | 15% 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 3 3.030 3.060 3.0913.1223.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 4 4.060 4.122 4.184 4.2464.310 4.375 4.440 4.506 4.573 4.6414.7794.9214.993 5 5.101 5.204 5.3095.4165.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 6 6.152 6.308 6.468 6.633 6.802 6.975 7.1537.336 7.523 7.716 8.115 8.536 8.754 7 7.214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 8 8.286 8.583 8.892 9.214 9.549 9.897 10.260 10.64 11.03 11.44 12.30 13.23 13.73 9 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10 10.46 10.95 11.46 12.0112.58 13.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 11 11.57 12.17 12.81 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 12 12.68 13.41 14.1915.0315.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13 13.81 14.68 15.62 16.63 17.7118.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 14 14.9515.9717.09 18.29 19.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 40.50 15 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.1529.36 31.77 37.28 43.84 47.58 16 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.9542.75 50.98 55.72 17 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 18 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 55.75 68.39 75.84 19 20.81 22.84 25.12 27.6730.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88.21 20 22.02 24.30 26.87 29.78 33.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4 21 23.24 25.78 28.68 31.97 35.7239.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 22 24.47 27.30 30.54 34.2538.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 23 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 24 26.97 30.42 34.43 39.0844.50 50.82 58.18 66.76 76.79 88.50 118.2158.7 184.2 25 28.24 32.03 36.46 41.65 47.7354.86 63.2573.11 84.70 98.35 133.3 181.9 212.8 Print Done