C&H Ski Club recently borrowed money and agreed to pay it back with a series of six annual payments of $8,000 each. C&H subsequently borrows more money and agrees to pay it back with a series of four annual payments of $25,000 each. The annual interest rate for both loans is 5%. Find the present value of these two separate annuities. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to nearest whole dollar. Round "Table Factor" to 4 decimal places.)
| First Annuity | ||||||
| Number of periods | Interest Rate | Single Future Payment | Table Factor | = | Amount borrowed | |
| First payment | 1 | 5% | $8000 | .9524 | = | $7619.2 |
| Second payment | 2 | 5% |
$8000 |
.9070 | = | $7256 |
| Third payment | 3 | 5% | $8000 | .8638 | = | $6910.4 |
| Forth payment | 4 | 5% | $8000 | .8227 | = | $6881.6 |
| Fifth payment | 5 | 5% | $8000 | .7835 | = | $6268 |
| Sixth payment | 6 | 5% | $8000 | .7462 | = | $5969.6 |
| $40904.8 | ||||||
| Second Annuity | ||||||
| Number of periods | Interest Rate | Single Future Payment | Table Factor | = | Amount borrowed | |
| First payment | 1 | 5% | $25000 | .9524 | = | $23810 |
| Second payment | 2 | 5% |
$25000 |
.9070 | = | $22675 |
| Third payment | 3 | 5% | $25000 | .8638 | = | $21595 |
| Forth payment | 4 | 5% | $25000 | .8227 | = | $20567.5 |
| $88647.5 | ||||||
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