Answer Happy

CALCULATE THE FOLLOWING AMOUNTS USING PRESENT VALUE TABLES. 1. 2. 3. Susan want to have $30,000 available for use in five years. How much should Susan invest now in order to have the $30,000 available in five years if she can invest money at 16%. ANSWER = Ace Corporation has entered into a 5 year lease for a building it will use as a warehouse. The annual payment under the lease will be $24,000. What is the present value of the lease payments if the discount rate is 10%? ANSWER = Your grandfather would like to share some of his good fortune with you. He offers to give you money under one of the following scenarios (you get to choose). a. $8,000 a year at the end of each of the next eight years. b. $50,000 (lump sum) now. c. $100,000 (lump sum) eight years from now. Calculate the present value of each scenario using a 6% interest rate. a. Present Value = b. Present Value = c. Present Value = Circle the scenario that maximizes your inheritance. Calculate the present value of each scenario using a 12% interest rate. a. Present Value = b. Present Value = c. Present Value = Circle the scenario that maximizes your inheritance.