1.) The money required by sarah to fund her travels @ 10% is calculated below : | ||
Required Amount = $35,000 * PVAF(10%,4years) | ||
$35000*3.170 | ||
$ 110,950.00 | ||
2.) The money required by sarah to fund her travels @ 4% is calculated below : | ||
Required Amount = $35,000 * PVAF(4%,4years) | ||
35000*3.630 | ||
$ 127,050.00 | ||
Working : | Already given in question | |
Year | Present value factor @ 10% | present value factor @ 4% |
1 | 0.909 | 0.961538462 |
2 | 0.826 | 0.924556213 |
3 | 0.751 | 0.888996359 |
4 | 0.683 | 0.854804191 |
Annuity | 3.170 | 3.630 |
Reference for present value of $1 table Reference for present value of ordinary annuity of $1...
Reference for the present value of $1 table Reference for present value of ordinary annuity of $1 table Reference for the future value of $1 table Reference for future value of ordinary annuity of $1 table Reference Present Value of $1 Per odel -1%-12% 13% -4% 1.6%-|-7% -8% 19%110%112%- 1 5% 14% -15%116%118%T 20% 2 0980 01 0943 0925 0.907 089008730857 0842 0826 0797 0769 0756 0743 0718 0694 30.971 0.942 0915 0.889 0864 0840 0816 0.794 0772 0751 07120675...
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