years you take the proceeds and invest them for 12 years at 15 percent. How J You invest a single amount of $10,000 for 5 years at 10 percent. At the end much will you have after 17 years? Solution Appendix a FV≡PVxFⅤIF $l0000x1611=$16,110 Appendix a FV≡PⅤxFVF $16,110x5350=$86,188 9-8 Jean Splicing will receive $8, 500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments? Solution: ppendix d PVA=AX PVIFA(7%, 15 periods) =$8,500X9.108=$77,418 99 Phil Goode will receive $175,000 in 50 years. His friends are very jealous of him. If the funds are discounted back at a rate of 14 percent, what is the present value of his future"pot of gold"? Solution: Appendix b PV=FVX PVIF(14%0, 50 periods) $175,000x001=$175 CopyrightC 2005 by The McGray-Hill Companies, Inc. S-310Copyright © 2005 by The McGraw-Hill Companies, Inc. S-310 9-7. You invest a single amount of $10,000 for 5 years at 10 percent. At the end of 5 years you take the proceeds and invest them for 12 years at 15 percent. How much will you have after 17 years? Solution: Appendix A FV = PV x FVIF $10,000 x 1.611 = $16,110 Appendix A FV = PV x FVIF $16,110 x 5.350 = $86,188 9-8. Jean Splicing will receive $8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments? Solution: Appendix D PVA = A x PVIFA (7%, 15 periods) = $8,500 x 9.108 = $77,418 9-9. Phil Goode will receive $175,000 in 50 years. His friends are very jealous of him. If the funds are discounted back at a rate of 14 percent, what is the present value of his future "pot of gold"? Solution: Appendix B PV = FV x PVIF (14%, 50 periods) = $175,000 x .001 = $175