Answer Happy

An investor has asked for your help with the following time value of money applications. Table 6-4. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Required: 6. What is the present value of $53,000 to be received in six years using a discount rate of 12%? (Round your answer to 1 decimal place.) Present value b. How much should be invested today at a return on investment of 12% compounded annually to have $53,000 in six years? (Round your answer to 1 decimal place.) Amount to be invested c. If the return on investment was greater than 12% compounded annually, would the amount to be invested today to have $53,000 in six years be more or less than the answer to part b? More Less
TABLE 6.4 No. of Periods 1 2345 67990 8 10 FACTORS FOR CALCULATING THE PRESENT VALUE OF $1 Discount Rate 2% 6% 8% 10% 12% 14% 16% 18% 20% 0.980 0.9615 0.9434 0.9091 0.8475 0.8333 0.8929 0.8772 0.8621 0.7972 0.7695 0.7432 0.7182 0.961 0.942 0.8890 0.6944 0.9259 0.9246 0.8900 0.8573 0.8264 0.8396 0.7938 0.7513 0.7921 0.7350 0.6830 0.6750 0,6407 0.6086 0.5787 0.7118 0.6355 0.924 0.8548 0.5921 0.5523 0.5158 0.4823 0.906 0.8219 0.7473 0.6806 0.6209 0.5674 0.5194 0.4761 0.4371 0.4019 0.888 0.7903 0.7050 0.6302 0.5645 0.5066 0.4556 0.4104 0.3704 0.3349 0.871 0.7599 0.6651 0.5835 0.5132 0.4523 0.3996 0.3538 0.3139 0.2791 0.853 0.7307 0.6274 0.5403 0.4665 0.4039 0.3506 0.3050 0.2660 0.2326 0.3606 0.3075 0.2630 0.2255 0.1938 0.837 0.7026 0.5919 0.5002 0.4241 0.820 0.6756 0.5584 0.3855 0.4632 0.3220 0.2697 0.2267 0.1911 0.1615 0.804 0.2366 0.1954 0.1619 0.1346 0.788 0.6246 0.2076 0.1685 0.1372 0.1122 0.6496 0.5268 0.4289 0.3505 0.2875 0.4970 0.3971 0.3186 0.2567 0.773 0.6006 0.4688 0.3677 0.2897 0.2292 0.758 0.5775 0.4423 0.3405 0.2633 0.743 0.5553 0.4173 0.3152 0.2394 0.1821 0.1452 0.1163 0.0935 0.1252 0.0985 0.0779 0.2046 0.1597 0.1827 0.1401 0.1079 0.0835 0.0649 0.0930 0.0708 0.0541 0.0802 0.0600 0.0451 0.728 0.5339 0.3936 0.2919 0.2176 0.1631 0.1229 0.714 0.5134 0.3714 0.2703 0.1978 0.1456 0.1078 0.700 0.4936 0.3503 0.2502 0.1799 0.1300 0.686 0.4746 0.3305 0.2317 0.1635 0.1161 0.4564 0.3118 0.2145 0.1486 0.1037 0.0946 0.0691 0.0508 0.0376 0.0431 0.0313 0.0829 0.0596 0.0728 0.673 0.0514 0.0365 0.0261 0.0443 0.0309 0.0217 0.0262 0.0181. 0.660 0.4388 0.2942 0.1987 0.1351 0.647 0.4220 0.2775 0.1839 0.1228 0.634 0.4057 0.2618 0.1703 0.1117 0.622 0.3901 0.2470 0.1577 0.1015 0.610 0.3751 0.2330 0.1460 0.0923 0.0926 0.0638 0.0826 0.0560 0.0382 0.0738 0.0491 0.0329 0.0659 0.0431 0.0284 0.0188 0.0126 0.0588 0.0378 0.0245 0.0160 0.0105 0.0222 0.0151 0.0994 0.0573 0.0334 0.0190 0.0116 0.0070 0.0042 0.552 0.3083 0.1741 0.500 0.2534 0.1301 0.453 0.2083 0.0972 0.0676 0.0356 0.0189 0.0055 0.0030 0.0017 0.0102 0.0053 0,0460 0.0221 0.0107 0.0026 0.0013 0.0007 0.0313 0.0137 0.0061 0.0027 0.0013 0.0006 0.0003 0.410 0.1712 0.0727 0.372 0.1407 0.0543 0.0213 0.0085 0.0035 0.0014 0.0006 0.0003 0.0001 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50