What SUP

Ch 07-01
Present Value Analysis

Year Interest Annuity Investment

Future need: $ 95,000.00 0 $0.00
Term (in years): 4 1 $0.00 $22,371.55 $22,371.55
Interest rate: 4% 2 $894.86 $22,371.55 $45,637.97
Annuity payment required: ($22,371.55) 3 $1,825.52 $22,371.55 $69,835.04
4 $2,793.40 $22,371.55 $95,000.00

Year Interest Investment

Current investment: ($20,000.00) 0 $20,000.00
Interest rate: 3% 1 $600.00 $20,600.00
Term (in years): 4 2 $618.00 $21,218.00
Investment value in future: $22,510.18 3 $636.54 $21,854.54
4 $655.64 $22,510.18

Year Interest Annuity Investment

Current annuity investment: ($8,500.00) 0 $ -
Interest rate: 3% 1 $0.00 $8,500.00 $ 8,500.00
Term (in years): 4 2 $255.00 $8,500.00 $ 17,255.00
Investment value in future: $35,560.83 3 $517.65 $8,500.00 $ 26,272.65
4 $788.18 $8,500.00 $ 35,560.83

Year Interest Investment

Future need: $ 10,500.00 0 $9,329.11
Interest rate: 3% 1 $279.87 $9,608.99
Term (in years): 4 2 $288.27 $9,897.26
Invest now: ($9,329.11) 3 $296.92 $10,194.17
4 $305.83 $10,500.00