Ch 02: Assignment - Using Financial Statements and Budgets 13. Present value You just found out that you had a very eccentric uncle who lived quietly in Queens. He left you $35,000. You just saw the movie The Bucket List and have decided that you want to put some money away so that in 15 years, you can start fulfilling items on that list. with whatever money you have left, you'll pay off some bills. You have found an investment instrument that will pay 9% interest annually. Use the scenarios along with the following factor table data to answer each of the questions. Note that the complete Future Value and Future Value Annuity tables (as well as the Present Value and Present Value Annuity tables) are located in the appendix in your text. Factor Tables Table of Present Value Factors Interest Rate Year 3% 5% 7% 8% 6 .837 .746 666 .630 8789 .677 .582 .540 10 .744 .614 SOS .463 12 .701 .557 .444 1397 9% .596 .502 422 1356 15 .642 481 .362 275 -315 .215 20 554 377 .258 .178 Table of Present Value Annuity Factors Interest Rate Year 3% 5% 7% 8% 9% 6 5.417 5.076 4.767 4.623 4.486 8 7.020 6.463 5.971 5.747 5.535 10 8.530 7.722 7.024 6.710 6.418 12 9.954 8.863 7.943 7.536 7.161 15 11.938 10.380 9.108 8.560 8.061 20 14.878 12.462 10.594 9.818 9.129 Present Value of a Single Amount alks What is the amount you should invest today to have $40,250 in 15 years? Present Value of an Annuity Now the 15 years have passed, and you are ready to pull some money out of your fund. You talked to your investment advisor who says you can take this money and move it into a fund that will earn 99 interest annually. And you envision tackling most of your budet iste over the next 10 Years What is the annual amount you will have to spend for your bucket list activities