Exercise C-4 Calculate the present value of a single amount (LOC-2) Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The first store offers the two ovens for $1.600 with payment due today. The second store offers the two ovens for $1,800 due in one year. Required: 1-a. Assuming an annual discount rate of 9%, calculate the present value. (FV of $1. PV of $1. EVA of $1. and PVA of $1 (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Present Value Stoce 1 Store 2 1-b. From which store should Ray and Rachel buy their overs? Store 2 Store 1 Exercise C-6 Calculate the future value of an annuity (LOC-3) GMG Studios plans to invest $46,000 at the end of each year for the next five years. There are three investment options available. Annual Interest Period Rate Compounded Invested Option 1 Annually 5 years Option 2 Annually 5 years Option 3 10 Annually Syears 5 Required: Determine the accumulated investment amount by the end of the fifth year for each of the options. (FV of $1. PV of $1. EVA of S1, and PVA of $1 (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Accumulated Investment amount Option 1 Option 2 Option 3
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