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): 1. $7,750 a year at the end of each of the next seven years 2. $50,050 (lump sum) now 3. $100,250 (lump sum) seven years from now Calculate the present value of each scenario using an 8% interest rate. Which scenario yields the highest present value? Would your preference change if you used a 12% interest rate? (Click the icon to view the present value annuity factor table.) (Click the icon to view the present value factor table.) (Click the icon to view the future value annuity factor table.) (Click the icon to view the future value factor table.) Using an 8% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar.) Scenario 1 Present value =D 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): 1. $7,750 a year at the end of each of the next seven years 2. $50,050 (lump sum) now 3. $100,250 (lump sum) seven years from now Calculate the present value of each scenario using an 8% interest rate. Which scenario vields the highest present value? Would your preference change if you used a 12% interest rate? (Click the icon to view the present value annuity factor table.) i Present Value of Annuity of $1 (Click the icon to view the future value annuity factor table.) Using an 8% interest rate, calculate the present values for each scenario. (Rd Periods Scenario 1 Present value =D Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 2.9412.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 5.795 5.601 5.417 5.076 4.917 4.623 4.355 4.111 3.889 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 10.368 9.787 9.253 8.306 7.887 | 7.139 6.495 5.938 5.453 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 12.134 | 11.348 10.635 | 9.986 9.394 8.853 7.904 7.103 6.424 5.842 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.6286.002 13.865 12.849 11.938 11.118 10.380 9.7128.559 7.606 6.811 6.142 18.046 16.351 14.877 13.590 12.462 | 11.470 9.818 8.514 7.4696.623 22.023 19.523 | 17.413 | 15.622 14.094 | 12.783 10.675 9.077 7.8436.873 25.808 22.396 | 19.600 17.292 | 15.372 | 13.765 11.258 | 9.4278.055 | 7.003 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 16% 18% 0.862 0.847 1.6051.566 2.246 2.174 2.798 2.690 3.274 3.127 3.685 3.498 4.039 3.812 4.344 4.078 4.607 4.303 4.833 4.494 5.029 4.656 4.793 5.342 4.910 5.468 5.008 5.575 5.092 5.929 5.353 6.097 5.467 6.1775.517 6.233 5.548 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 Enter any number in the edit fields and then click Check Answer. Dit 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): 1. $7,750 a year at the end of each of the next seven years 2. $50,050 (lump sum) now 3. $100,250 (lump sum) seven years from now Calculate the present value of each scenario using an 8% interest rate. Which scenario yields the highest present value? Would your preference change if you used a 12% interest rate? (Click the icon to view the present value annuity (Click the icon to view the future value annuity 0 Future Value of Annuity of $1 Using an 8% interest rate, calculate the present valy Periods Scenario 1 Present value =D 3% 1.000 2.030 3.091 4.184 5.309 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 | 79.058 113.283 164.494 120.800 154.762 259.057 442.593 12% 14% 1.000 1.000 2.120 2.140 3.374 3.440 4.779 4.921 6.353 6.610 8.115 8.536 10.089 10.730 12.300 13.233 14.776 16.085 17.549 19.337 20.655 23.045 24.133 27.271 28.029 32.089 32.393 37.581 37.280 43.842 72.052 91.025 133.334 | 181.871 241.333 356.787 767.091 1,342.025 16% 18% 1.000 1.000 2.160 2.180 3.506 3.572 5.066 5.215 6.877 7.154 8.977 9.442 11.414 12.142 14.240 15.327 17.519 19.086 21.321 23.521 25.733 28.755 30.850 34.931 36.786 42.219 43.672 50.818 51.660 60.965 115.380 146.628 249.214 342.603 530.312790.948 2,360.757 4,163.213 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 186.688 471.981 1,181.882 7,343.858 Enter any number in the edit fields and then click 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): 1. $7.750 a year at the end of each of the next seven years 2. $50,050 (lump sum) now 3. $100,250 (lump sum) seven years from now Calculate the present value of each scenario using an 8% interest rate. Which scenario vields the highest present value? Would your preference change if you used a 12% interest rate? 2 (Click the icon to view the present value annuity factor table.) i Present Value of $1 (Click the icon to view the future value annuity factor table.) - X Using an 8% interest rate, calculate the present values for each scend Present value Scenario 1 = Periods 1% | 0.990 20.980 30.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.279 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.863 0.888 0.837 0.871 0.813 0.853 0.789 0.837 0.766 0.820 0.744 0.8040.722 0.788 0.701 0.773 0.681 0.758 0.661 0.743 0.642 0.673 0.554 0.610 0.478 0.5520.412 0.453 0.307 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.857 0.826 0.864 0.840 0.794 0.751 0.683 0.784 0.747 0.681 0.621 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.645 0.5920.500 0.424 0.614 0.558 0.463 0.386 0.585 0.527 0.429 0.350 0.557 0.497 0.397 0.319 0.530 0.4690.368 0.290 0.505 0.442 0.340 0.263 0.481 0.417 0.315 0.239 0.377 0.312 0.215 0.149 0.295 0.233 0.146 0.092 0.231 0.174 0.099 0.057 0.142 0.097 0.046 0.022 12% 14% 16% 18% 20% 0.893 0.877 0.862 0.847 0.833 0.797 0.769 0.743 0.7180.694 0.712 0.675 0.641 0.609 0.579 0.636 0.592 0.552 0.516 0.482 0.567 0.519 0.476 0.437 | 0.402 0.507 0.456 0.410 0.370 0.335 0.452 0.400 0.354 0.314 0.404 0.351 0.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 0.322 0.270 0.227 0.1910.162 0.287 | 0.237 0.1950.162 0.135 0.257 0.208 0.168 0.137 | 0.229 0.1820.145 0.116 0.093 0.205 0.160 0.125 0.099 0.078 | 0.183 0.140 0.108 0.084 0.065 0.104 0.073 0.051 0.037 0.026 0.059 0.038 0.024 0.0160.010 0.033 0.020 | 0.012 0.007 0.004 0.0110.005 0.003 0.001 0.001 0.861 0.820 0.780 0.742 0.672 Enter any number in the edit fields and then click Check Answer 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): 1. $7.750 a year at the end of each of the next seven years 2. $50,050 (lump sum) now 3. $100,250 (lump sum) seven years from now Calculate the present value of each scenario using an 8% interest rate. Which scenario yields the highest present value? Would your preference change if you used a 12% interest rate? (Click the icon to view the present value a (Click the icon to view the future value and 0 Futu Future Value of $1 Using an 8% interest rate, calculate the presel Future Value of $1 Periods 12% 20% Scenario 1 Present value =D 2% 1.020 1.040 1.061 1.082 1.104 6% 1.060 1.124 1.191 1.262 1.338 14% 1.140 1.300 1.482 1.689 1.925 OVOAWN 16% 1.160 1.346 1.561 1.811 2.100 2.436 1.419 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 2.826 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 7.040 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2.208 8% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 3.278 3.803 4.411 5.117 1.504 1.594 1.689 1.791 1.898 2.012 2.133 2.261 2.397 3.207 4.292 5.743 10.286 6.176 5.936 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 1,469.772 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 7.288 8.599 10.147 11.974 27.393 62.669 143.371 750.378 6.886 7.988 9.266 19.461 40.874 85.850 378.721 4.661 6.848 10.063 21.725 G Enter any number in the edit fields and ther