How much would you have to invest today to receive a. $15,000 in 8 years at 10 percent? b.$20,000in12 at 13 c. $6,000 each year for 10 years at 9 percent? d. $50,000 each year for 50 years at 7 percent? Solution: ppendix b(a and b) PⅤ=FⅤ X PVIE a.$15000X467=$7005 b.$20,000x.231=$4620 Appendix d(c and d) C.$6000x6418=$38508 d.$50,000x13.801=$690050 If you invest $2,000 a year in a retirement account, how much would you have a. In 5 years at 6 percent? b. In 20 years at 10 perc c. In 40 years at 12 percent? Solution: Appendix c FVA=AxFⅤ a.$2,000X5637=$11,274 b.$2,000x57275=$114,550 C.$2.000x76709=$1.534180 -309 Copyright C2005 by The McGra-Hill Companies, Inc.Copyright © 2005 by The McGraw-Hill Companies, Inc. S-309 9-5. How much would you have to invest today to receive: a. $15,000 in 8 years at 10 percent? b. $20,000 in 12 years at 13 percent? c. $6,000 each year for 10 years at 9 percent? d. $50,000 each year for 50 years at 7 percent? Solution: Appendix B (a and b) PV = FV x PVIF a. $15,000 x .467 = $7,005 b. $20,000 x .231 = $4,620 Appendix D (c and d) c. $ 6,000 x 6.418 = $ 38,508 d. $50,000 x 13.801 = $690,050 9-6. If you invest $2,000 a year in a retirement account, how much would you have: a. In 5 years at 6 percent? b. In 20 years at 10 percent? c. In 40 years at 12 percent? Solution: Appendix C FVA = A x FVIFA a. $2,000 x 5.637 = $ 11,274 b. $2,000 x 57.275 = $ 114,550 c. $2,000 x 767.09 = $1,534,180