Solve various time value of money scenarios. (Click the icon to view the scenarios.) (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table) (Click the icon to view the present value annuity factor lable.) (Click the icon to view the future value annuity factor table.) Scenario 1. Suppose you invest a sum of $2,000 in an interest bearing account at the rate of 10% per year. What will the investment be worth six years from now? (Round your answer to the nearest whole dollar) In six years the investment will be worth Scenario 2. How much would you need to invest now to be able to withdraw $4,000 at the end of every year for the next 20 years? Assume an 8% interest rate (Round your answer to the nearest whole dollar) The current investment amount required is Scenario 3. Assume that you want to have $175,000 saved seven years from now If you can invest your funds at a 6% interest rate, how much do you currently need to invest? (Round your answer to the nearest whole dollar) The current investment amount required is Scenario 4. Your aunt Eugenia plans to give you $4,500 at the end of every year for the next ten years. If you invest each of her yearly gifts at a 12% interest rate how much will they be worth at the end of the ten-year period? (Round your answer to the nearest whole dollar) In ten years the investment will be worth Scenario 5. Suppose you want to buy a small cabin in the mountains four years from now You estimate that the property will cost $53,500 at that time. How much money do you need to invest each year in an interest-bearing account at the rate of 6% per year to accumulate the purchase price? (Round your answer to the nearest whole dolar) The investment required each year is i More Info 1. Suppose you invest a sum of $2,000 in an interest-bearing account at the rate of 10% per year. What will the investment be worth six years from now? 2. How much would you need to invest now to be able to withdraw $4,000 at the end of every year for the next 20 years? Assume an 8% interest rate. 3. Assume that you want to have $175,000 saved seven years from now. If you can invest your funds at a 6% interest rate, how much do you currently need to invest? 4. Your aunt Eugenia plans to give you $4,500 at the end of every year for the next ten years. If you invest each of her yearly gifts at a 12% interest rate how much will they be worth at the end of the 10-year period? 5. Suppose you want to buy a small cabin in the mountains four years from now. You estimate that the property will cost $53,500 at that time. How much money do you need to invest each year in an interest-bearing account at the rate of 6% per year to accumulate the purchase price? un Print Done OS ul he Reference - he m ne TH es AL Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 10.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.8570.826 0.797 0.769 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.8230.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.4560.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.3140.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.6270.540 0.467 0.404 0.3510.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 11 0896 0.8040.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0,442 0.340 0.263 0.2050 160 0.125 0.099 0.078 Period 15 0.861 0743 0.642 0.555 0.481 0.417 0.315 0.2390.183 0.140 0.108 0.0840065 Period 20 0.820 0.673 0.554 0.456 0377 0.312 0215 0.149 0.104 0.073 0.051 0.037 0028 Period 26 0780 0.610 0.478 0.375 0.295 0.233 0.146 00920 059 0.038 0.024 0.0160.010 Period 30 07420552 0.412 0.308 0.231 0.174 0.099 0.057 0.03300200012 0.007 0.004 Period 40 08720.4530 307 0.208 0.142 0.097 0.046 0.022 0.0110.005 0.003 0.001 0.001 fate ir es yea ar) S w ico t 55 latet Print Dane Reference 1.060 1.643 1.728 4.300 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1,010 1.020 1.030 1.040 1.050 1.080 1.100 1.120 1.140 1.160 1.180 1.200 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2074 Period 5 1.051 1.104 1.159 1.217 1276 1.338 1.469 1611 1.762 1.925 2.100 2 288 2.488 Period 6 1.062 1.126 1.194 1285 1.340 1.419 1.587 1.772 1.9742.195 2.436 2.700 2.986 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1714 1.949 2211 2.502 2.826 3185 3.583 Period 8 1.083 1.172 1.267 1.369 1477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 Period 9 1.094 1.195 1.305 1423 1.551 1.689 1999 2.3582.7733.252 3.803 4 435 5.160 Period 10 1.105 1219 1.344 1.480 16291791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 Period 11 1.116 124313841539 1710 1.898 2 3322853 3 479 4.226 5.117 6.176 7.430 Period 12 1.127 1288 1426 1.601 1796 2.012 2518 3.138 3 896 4818 5 936 7.288 8.916 Period 13 1.138 12941469 1665 1.886 2133 2720 3.452 4.363 5.492 6.896 8.599 10.699 Period 14 1.149 1319 1.513 1732 1.980 2261 2 937 3.797 4887 6.261 7.988 10.147 Period 15 1.161 1.346 12.839 1.558 18012079 2.397 3.172 4.1775.474 7.138 9.266 11.974 15.407 Period 20 1.220 1.486 1 806 2.1912.653 3 20746616.727 9.646 13.743 19.461 27393 38.338 Period 25 1.282 16412094 2.686 3386 4 292 6 848 10.83517.000 28.462 40.874 62.669 Period 30 1.348 18112427 3 243 4322 5.743 10.06317.449 29.960 50 950 85.850 143371 237 376 95 396 Period 40 1.4892 208 3 262 4 801 7040 10.28621.725 45 25993 051188 884 378.721750 3781,469.772 Print Done i Reference . 2% Present Value of Annuity of $1 Periods 1% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1970 1.942 1913 1.886 1.859 1.833 1.783 1736 1.690 1.647 1.605 1.566 1.528 Period 3 2941 2.884 2.829 2.775 2.723 2.673 2577 2487 2402 2.322 2.246 2.174 2106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.6902589 Period 5 4.853 4.713 4.580 4.452 4.329 4212 3.993 3.791 3.605 3.433 3.274 3.1272.991 Period 6 5795 5.601 5.417 5.242 5.076 4.917 4.623 4355 4.111 3.8893.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4288 4.039 3.812 3.605 Period 8 7 652 7.325 7.020 6.733 6.463 6.210 57475.335 4.968 4.639 4.344 4.0783.837 Period 9 8,566 8.162 7 786 7.435 7 108 6.802 6 247 5.759 5.328 4.9464.607 4303 4.031 Period 10 9.471 8.983 8.530 8.111 77227.360 6.710 6.145 5.6505.216 4.833 4.494 4. 192 Period 11 10.368 9.787 9253 8.760 8.3067.887 7.139 6.495 5.938 5.4535.029 4.656 4327 Period 12 11 255 10.575 9.954 9 385 8.8638.384 7.536 6.814 6.1945.6605.1974.793 4.439 Period 13 12.134 11 348 10.635 9.988 9.394 8.853 7.9047 103 6.42458425,342 4.910 4533 Period 14 13.004 12.106 11 296 10563 9.899 9.295 8.24473676.6286.0025 468 5008 4.611 Period 16 13 885 12 849 11.938 11.118 10.380 9.712 8.559 7 606 6.8116.142 5.575 5.092 4.675 Period 20 18.046 16.35114877 13.590 12.462 11.470 9.818 8.5147.4696.623 5.9295.353 4.870 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.873 6.097 5.467 4.948 Period 30 25 808 22.398 19.600 17.292 15.372 13.765 11.2589.4278.055 7.0036.177 5517 4.979 Period 40 32 835 27 356 23.116 19.793 17 159 15.046 11.925 9.779 8.244 7 105 6.2335,548 4.997 lye a It $ late Print Done Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 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 Period 2 2010 2020 2030 2040 2050 2060 2.080 2.100 2.120 2.140 2. 160 2.180 2 200 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.1844.246 4310 4.375 4.506 4.641 4.779 4921 5.066 5.215 5.368 Period 5 5.101 5204 5.3095.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 63086.468 6.633 6.8026.975 7.336 7716 8.115 8.536 8.977 9.442 9.930 Period 7 72147.434 7662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.286 8.583 | 8.892 9.214 9.549 9.897 10.637 11.436 12 300 13.233 14.240 15327 16.499 Period 9 9369 9.755 10.159 10.583 11027 11.491 12.488 13 579 14.776 16.085 17519 19.086 Period 10 10.462 10 950 11.464 12.006 12578 13.181 | 1448715.93717 549 20799 19.337 21321 23.521 25.959 Period 11 11.567 12 16912808 13.488 14207 14.972 16.645 18.531 20.655 23 045 25733 Period 12 12 883 13412 14.192 15.026 15917 16.870 18.977 2138424.133 27.271 28.755 32.150 Period 13 13 809 14.68015618 16.827 17.71318.882 21.495 24.523 28.029 32.089 30850 34 931 39.581 Period 14 14 947 15 974 17.096 18 292 19.599 21.015 24 215 27 975 32 393 37581 36 786 42.219 48.497 Period 15 16 097 17 293 18 599 20.024 21579 23 278 27.152 31.772 37.280 43.842 43 672 50.818 59.196 51.660 80 966 72.035 Period 20 22019 24 297 25 870 29.778 33066 36 786 45.762 57 275 72.052 91025 Period 25 28 243 3203038 459 41.646 47 727 54 865 73.10698 347 133 334 181,871249.214 342603471981 115 380 146.628 186.688 Period 30 34 785 40 588 47 575 56 085 68 439 79.058 113283 164.494 241.333 358 787 530 312790 948 1.181.882 Period 40 48 888 60.402 75.401 95 026 120.800 154 782 259.057 442.593 767 091 1,342.025 2.360.757 4. 163.213 7 343.858 Print Done