Anthony and Michelle Constantino just got married and received $28,000in cash gifts for their wedding. How much will they have on their twenty-fifth anniversary if they place half of this money in a fixed-rate investment earning 10 percent compounded annually? Would the future value be larger or smaller if the compounding period was 6 months? How much more or less would they have earned with this shorter compounding period? If they place half of this money, PV, in a fixed rate investment earning 10percent compounded annually, the amount they will have, FV, on their twenty-fifth anniversary is $ (Round to the nearest ce
Anthony and Michelle Constantino just got married and received $28,000in cash gifts for their wedding. How much will they have on their twenty-fifth anniversary if they place half of this money in a fixed-rate investment earning 10 percent compounded annually? Would the future value be larger or smaller if the compounding period was 6 months? How much more or less would they have earned with this shorter compounding period? If they place half of this money, PV, in a fixed rate investment earning 10percent compounded annually, the amount they will have, FV, on their twenty-fifth anniversary is $ (Round to the nearest ce
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 2.1C
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Question
Anthony and Michelle Constantino just got married and received $28,000in cash gifts for their wedding. How much will they have on their twenty-fifth anniversary if they place half of this money in a fixed-rate investment earning 10
percent compounded annually? Would thefuture value be larger or smaller if the compounding period was 6 months? How much more or less would they have earned with this shorter compounding period?
percent compounded annually? Would the
If they place half of this money, PV, in a fixed rate investment earning 10percent compounded annually, the amount they will have, FV, on their twenty-fifth anniversary is $ (Round to the nearest cent.)
Transcribed Image Text:Data table
1
2
3
4
6
6
7
1.072 1.149 1.230
8
1.083 1.172 1.267
9 1.094 1.195 1.305
10 1.106 1.219 1.344
11
1.116 1.243 1.384
1.127 1.268 1.426
12
13
1.130 1.294 1.469
14
1.149 1.319 1.513
15 1.161 1.346 1.568
16 1.173 1.373 1.605
17
1.184 1.400 1.663
18 1.196 1.428 1.702
19 1.200 1.457 1.764
20
21
22
1.220 1.436 1.506
1.232 1.516 1.860
1.245 1.546 1.916
1.257 1.577 1.974
1.608 2.033
1.270
1.282
1.348
1.641 2.094
1.811 2.427
1.489
2.208 3.262
1.645 2.692 4.384
SSSXXX
23
24
25
30
40
1%
2%
3%
1.010 1.020
1.030
1.020 1.040 1.061
1.030
1.061 1.093
1.041
1.002 1.126
1.051 1.104 1.159
1.062 1.126 1.194
50
3.5%
1.036
1.071
1.109
1.148
1.188
1.229
1.272
1.317
1.363
1.411
1.460
1.511
1.564
1.619
1.675
1.734
1.796
1.857
1.923
1.990
2.059
2.132
2206
2283
2.363
2.807
3.959
5.585
Compound Sum of $1 (FVIF)
6%
1.040
1.050
1.002 1.103
1.125
1.158
1.170
1217
1.265
1.873 2.183
1.948 2.292
1.216 1.262
1.276 1.338
1.340
1.419
1.316
1.407
1.504
1.369 1.477
1.594
1.423 1.561 1.689
1.480 1.629 1.791
1.539
1.601
1.710 1.890
1.796
1.665 1.836
1.732
1.900
2.079
1.801
4.801
7.107
7%
1.060
1.070
1.124 1.145
1.191 1.225
2.026
2.407
2.107
2.527
2.693
2.854
3.026
2.191 2.653 3.207
2.279 2.786
2.370 2.925
2.465 3.072
2.563
3.225
2.666
3.243
1.000
1.166
1.260
1311 1.360
1.412
1.403 1.469 1.539
1.501 1.587
1.677
1.606 1.714
1.718 1.861
1.838
1.999
1.967 2.159
2.105 2.332 2.500
2.133
2012 2252 2.518 2.813
2.410 2.720 3.066
2.937 3.342
2.759 3.172
2261 2679
3.642
2.397
2.540 2.952 3.426 3.970
3.700
4.328
3.159
3.380
3.996 4.717
3%
9%
3.617 4.316
3.870
3.400 4.141
3.604
4.430 5.437
3.820
4.741
6.871
4.049
5.072
6.341
3.306 4.292 5.427
4.322
7.040
11.067 18.420
1.090
1.188
1.295
1.828
1.993
2.172
2.367
6.142
4.661 5.604
6.034 6.109
6.669
7.258
7.911
6.845
8.623
5.743 7.612 10.063 13.268
10.256 14.974 21.725 31.409
29.457 46.902 74.358
10%
1.100
1.210
1.331
1.464
1.611
1.772
1.949
2.144
2.358
2.594
2.853
3.138
3.452
3.797
4.177
4.595
6.064
5.560
6.116
6.727
7.400
8.140
8.964
9.850
10.835
17.449
45.259
117.391
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