Invested Amount
Interest Rate
No. of Periods
FV of $1 (from chart)
Future Value
1
18,500
9%
10
2.36736
43,796
2
29,000
6%
8
1.59385
46,222
3
41,000
6%
14
2.26090
92,697
4
62,000
5%
10
1.62889
100,991
=Present Value
1
Alex Meir recently won a lottery and has the option of receiving one of the following three prizes
(1) $88,000 cash immediately
(2) $34,000 cash immediately and a sixperiod annuity of $9,300 beginning one year from today
(3) a sixperiod annuity of $18,400 beginning one year from today
a
Assuming an interest rate of 7%, determine the Present value for the above options. (Use PVA of
Option
Present Value
Annuity
PVA of $1 (from chart) PV of Annuity
1
88,000
2
34,000
9,300 i=7%, n=6
4.76654
44,329
3

18,400 i=7%, n=6
4.76654
87,704
2
The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on Dec
Weimer will make annual deposits of $175,000 into a special bank account at the end of each of 1
Assuming that the bank account pays 8% interest compounded annually, what will be the fund ba
(Use FVA of $1) (Round "FV Factor" to 4 decimal places and final answer to the nearest dollar am
s:
$1) (Round "PV Factors" to 5 decimal places and final answers to the nearest dollar amount.)
Total Present Value
88,000
78,329
87,704
cember 31, 2022.
10 years beginning December 31, 2013.
alance after the last payment is made on December 31, 2022?
mount.)