Question

To determine the appropriate discount factor(s) using tables, click here to view Tables I, II, III, or IV in the appendix. Alternatively, if you calculate the discount factor(s) using a formula, round to six (6) decimal places before using the factor in the problem. (Round your answers to the nearest whole dollar amount.) Required a. The future value of $15,000 invested at 6 percent for 13 years. Future value b. The future value of eight annual payments of $1,100 at 6 percent interest. Future value

Answer 1

1)
Amount Invested	15,000
Return Rate	6%
Years	13
Factor using formula	2.132928	=(1+0.06)^13
Future Value	31,994	(15000*2.132928)
2)
Annual Payments	1100	assuming year end payments
Rate	6%
Years	8
Factor	9.897468	=FV(6%,8,-1,0,0)	=fv(rate,no. of years, amount,pv,0(year end payment)or 1(year start payment)
Future Value	$                                                                     10,887
3)
Future value	58000
Rate	8%
Years	5 years
Factor	1.469328	=(1+0.08)^5
Present Value	$                                                                     39,474	=58000/1.469328
4)
Years	9
Rate	9%
Note Payable	22,000
Annual Payment	$                                                                       1,980	(22000*9%)