Betty Dylan is taking an adult education night course in personal finance at the community college. The class is presently studying retirement planning. Each student is to estimate the amount of funds (in addition to pension plans and social security) they believe will be needed at retirement. Then they are to make a retirement plan. Betty has estimated she would need $100,000 fifteen years from now. In order to complete her assignment, she needs to know the present value of the $100,000. Betty further assumes an interest rate of 6%.
Solution to Example
Step 1. Refer to the Present-Value Table appearing in Appendix 13-A at the back of this chap- ter. Reading across, or horizontally, find the 6% column. Reading down, or vertically, find Year 15. Trace across the Year 15 line item to the 6% column. The factor is 0.4173.
Step 2. Multiply $100,000 times the factor of 0.4173 to find the present value of $41,730.

Northern lights electronics just completed plans to distribute its new tablet. the product has several unique features that differentiate it from competitor products. the marketing team plans to begin a roll-out with to only one traditional retailer for the first two months. this strategy will give consumers the perception of the product’s stand-out personality and increase demand. marketing will proceed with for the next four months, where it plans to distribute to three other retailers, as well. for the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. the marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. as the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with as described above. intensive distribution; selective distribution; exclusive distribution exclusive distribution; selective distribution; intensive distribution tertiary level distribution; secondary level distribution; mono-level distribution mono-level distribution; secondary level distribution; tertiary level distribution